Next steps: Kangaroo Bay fate rests with new council

Pressure is mounting for Clarence Council to buy back land at Kangaroo Bay, after Chambroad announced it would ditch its hospitality school plans, but the process isn’t that simple.

The future of the Kangaroo Bay precinct will be decided by a newly elected Clarence Council in November, as calls for the land to be reclaimed grow.

Developer Chambroad revealed it no longer planned to build a tourism and hospitality school at the site after it found there was no foreseeable appetite or outcome for it.

The company hoped to solely push ahead with its plans for a luxury hotel.

An agreement was entered into between council and Chambroad in 2017 after the council voted in favour of the development.

The developer was supposed to substantially commence the project by October 14, but has now requested an extension, promising it would begin work within 12 – 18 months.

Chambroad’s general manager said the land would be handed back it the company failed to meet the proposed deadline.

Clarence Council mayor Doug Chipman said the council had been closely monitoring the situation.

“Council has obligations under the contract as does Chambroad,” Mr Chipman said.

“Reasonable consideration must be given as a council, before making any decision, including whether to exercise the buyback option.”

Clarence City Council Mayor Doug Chipman. Picture: Nikki Davis-Jones

Mr Chipman said a decision would be made in November,

“The CEO will be seeking further details in respect to Chambroad’s proposal, for presentation to council in November.”

Ahead of the council vote, there are calls for the land to be bought back.

“In discussing this issue with the community, it is abundantly clear that the time has well and truly arrived for Council to firmly say “enough is enough” and exercise the buyback option to return this jewel in Clarence’s crown to public ownership,” Ald Brendan Blomeley said.

Greens member for Franklin Rosalie Woodruff also called for the land to be returned.

“Dropping the hospitality school from Chambroad’s waterfront hotel plans is a substantial change and should require the company to start a new development application, at the least,” Ms Woodruff said.

“We urge the new Clarence City Council, however, to buy the land back for the amount they sold it for, given no works have commenced.

Developer promises to hit new deadline or ‘we’ll hand the land back’

Plans for a tourism and hospitality school at Kangaroo Bay have been dumped after developer Chambroad, found there was “no foreseeable appetite or outcome” for the school.

The education facility was a key part of the $80m plan for the site, which also includes a luxury hotel.

An agreement was entered into between council and Chambroad in 2017 after the council voted in favour of the development.

The developer was supposed to substantially commence the project by October 14, but as the deadline looms for developer Chambroad to substantially begin work on the Kangaroo Bay precinct, the company has asked for an extension.

A previous artist's impression of plans for Kangaroo Bay. Pic: Supplied.

Chambroad Australia director and general manager Finely Zhang said construction of the hotel would begin in 12-18 months.

“This is Chambroad’s final extension request,” Mr Zhang said.

“If we don’t meet our commitments under the Sale & Development Agreement (SDA) we will hand the land back.”

Chambroad Australia director and general manager Finely Zhang (right) and Ganche Chua director circa at Kangaroo Bay. Picture: Richard Jupe

Mr Zhang said tourism and hospitality tertiary training had been crippled because of the pandemic.

He said after two years of working with universities to secure interest in the operation of the school, there was no foreseeable appetite or outcome for the school.

“That is what we want to achieve within the two-year extension, the construction of a stand-alone, luxury destination hotel for Hobart’s Eastern Shore and the City of Clarence,” Mr Zhang said.

“We therefore have proposed to council a way forward to construct both the Kangaroo Bay luxury hotel together with such uses such as commercial premises in line with the planning scheme.”

Mr Zhang said the company had an operator in mind for the hotel, should the extension be granted.

“We are proposing partnering with a leading Australian-based investment and development group, which owns and operates several major Australian hotel properties,” he said.

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