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Minister overrules council on Tasmanian hotel project

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Minister overrules council on Tasmanian hotel project
A proposed $65 million Hobart hotel project that includes a hospitality training college could be decided by Tasmania’s Supreme Court after the local council was bypassed as the planning authority by the state government’s decision to declare it a major project.

The Kangaroo Bay Hotel Project across the river from the Hobart CBD at Bellerive dates back to 2017 when it was sold to Taiwanese company, Chambroad, for $2.44 million by the Clarence City Council which now wants to buy back the land.

“The Council gave Chambroad the right to develop the land, approving in 2017 the construction of a hotel and associated training institution, and Chambroad having failed to achieve substantial commencement, the Council is now simply asserting its contractual right to resume ownership of the land,” said the council in a document objecting to the minister’s decision to grant Chambroad’s development major project status.

The 155-key, five-star hotel would be a first for the area with most major hotel development on the city side of the Derwent River.

While the project has attracted objections from some local residents, local industry supported the development.

On its website Clarence Council described the proposal to enhance the Kangaroo Bay area as such: “Kangaroo Bay is a significant location within the heart of the urban area of the City of Clarence. It has long been regarded by us and the community as an undeveloped opportunity to provide a significant visitor and leisure destination and community focus for the city.

“The Kangaroo Bay Urban Design Plan seeks to activate the potential of Kangaroo Bay to be a world-class waterfront destination, and an inclusive place for both residents and visitors that provides economic, social and community benefits.”

Signage erected on the proposed site, bearing the council’s logio proclaimed: “A World-Class Hotel Right On The Water”.

Apart from the hotel, the area was expected be developed with a restaurant, meeting and event spaces, a public boardwalk and markets near the existing yacht club.

It is understood the developer initially appealed to the then-minister to intervene a year ago but this appeal was rejected. A second appeal to the state’s new Housing and Planning Minister, Felix Ellis, did succeed and he intervened saying he wanted “to balance certainty for proponents and transparency for the community”. 

Ellis said it would generate 100 jobs during the construction phase and a further 443 ongoing positions.