Peppers Blue on Blue Resort set to be auctioned off by council
Part of a popular resort on Magnetic Island will go under the hammer due to unpaid rates. Here’s why.
Townsville
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Land attached to a much-loved Magnetic Island resort could go under the hammer after the owner failed to pay rates for almost a decade.
A piece of land that makes up part of Peppers Blue on Blue Resort at Nelly Bay, but is owned by a deregistered company, could be sold as early as next month if the owner doesn’t settle the debt with Townsville City Council.
The Peppers brand is owned by the Accor Group, but some apartments within the Magnetic Island resort are privately owned. The units are controlled under a body corporate.
The piece of land is part of the Blue on Blue Resort, but is not owned by the Accor Group.
A letter posted on the resort indicates that the council issued a notice of an intention to sell the property on October 24, 2024.
The rates on the property were paid up until December 31, 2011, and the business that owns the property was deregistered on May 8, 2016.
Another Magnetic Island property, Canopy Chalets, is set to be auctioned due to unpaid rates.
Also set to be auctioned is the property the former home of now defunct Campbell’s Coaches, and the inner-city building used as a canvas for the P!nk mural.
There were 14 properties listed for auction as of March 22, including addresses in West End, South Townsville, Mount St John, Bluewater, and Burdell.
The council periodically sells off properties with unpaid rates in order to recoup debt.
This process has a number of statutory requirements, with the council unable to issue such a notice before unpaid rates and charges have accumulated for at least three years.
Landowners have three months from the date of issue to pay the overdue rates in full or the land can be sold.
The council will work with owners to resolve payments to avoid needing to sell the property.
In some cases, issuing the notice may allow some ratepayers to access their superannuation.
With the auction date set for April 16, the council intends to sell the Magnetic Island parcel unless “all overdue rates, interest and other amounts are paid immediately.”
It is not the first high-profile property to be listed for auction to recoup unpaid rates.
In 2021, the company owned by Peter Dutton’s wife Kirilly was issued with a notice after it failed to pay rates and charges on Edison Plaza, Wulguru.
The bill was paid shortly after the Townsville Bulletin reported on the matter.
The property was later sold by RHT Investments.
Peppers was contacted for comment.
Originally published as Peppers Blue on Blue Resort set to be auctioned off by council
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