Developer of Kangaroo Bay hotel and hospitality school project aims to start construction by November

Clarence City Council is considering a clause that could allow it to buy back land sold to a Chinese developer in 2017 for an $80 million hotel and hospitality school project. Here’s why >>

An artist’s Impression of the Kangaroo Bay development. Architects: CIRCA MORRIS-NUNN

THE developers of an $80 million hotel and hospitality school development at Kangaroo Bay say they are aiming to start construction before the end of this year, as questions are raised about the future of the project.

A Clarence City Council meeting on Tuesday night heard a buyback clause existed for council if substantial work on the development had not started by November.

The council sold the land to Chinese company Chambroad in 2017 for $2.44 million, and the company last year signed a memorandum of understanding with the University of Tasmania for the hospitality school component.

Council sold the land to Chinese company Chambroad in 2017 for $2.44 million. Architects: CIRCA MORRIS-NUNN

The project had been delayed due to the wait for an educational provider to commit to the project, but now questions are being asked about what is holding up the development.

While construction has not started, the developers say the project is progressing.

“The $80 million Kangaroo Bay project, combining a boutique 5-star hotel, to be run by an international hotel chain, and international hospitality management school, operated by the University of Tasmania, continues to progress,’’ Chambroad Australia director and general manager Finely Zhang said on Wednesday.

“The COVID-19 pandemic has understandably slowed some processes down. Our aim is to begin construction onsite by November. Chambroad plans to announce the successful pre-building tender operator by the end of July.”

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At Tuesday night’s meeting, Alderman Luke Edmunds asked about the process involved in the buyback clause.

Council general manager Ian Nelson said if substantial development — defined as in-ground works — had not started by November, it triggered the clause.

But Mr Nelson said council would need to take advice on how to activate it.

“People aren’t seeing any activity and questions are starting to be asked,’’ Ald Edmunds said on Wednesday.

“I don’t think anyone wants to see this continue to drag on and on.”

Questions are being asked about what is holding up the development. Architects: CIRCA MORRIS-NUNN

Alderman Richard James said the coronavirus situation — including its impacts on UTAS — had cast doubt on the project.

“I don’t think it’s a goer,’’ he said.

“I think the ballgame has changed. I think it’s a strong option that council will have to bite the bullet and buy back the land and then we will have to start the process all over again.”

Ald James said he had been in favour of a smaller-scale development for the area.

Kangaroo Bay Voice group spokeswoman Anne Geard said the majority of people accepted development was the way forward for the area, but said the proposal was not what council had promised the community.

UTAS said it was continuing to progress planning for the hospitality school.

“The University of Tasmania remains committed to supporting and further enhancing Tasmania’s world-class tourism industry,’’ a spokesman said.

“The Kangaroo Bay development is an opportunity to do just that.”