The developer of a $50m hotel on Hobart’s Eastern Shore is facing another setback after Planning Minister Michael Ferguson dismissed their push to have the project assessed under Tasmania’s Major Projects process.
The Kangaroo Bay blow comes after the Clarence City Council rejected the proposed 155-room hotel earlier this year, which led Developer Chambroad down the major projects route.
Minister Michael Ferguson said while the hotel was an “excellent local project”, it was not eligible to be assessed as a Major Project.
“The planning legislation requires a proposal to be meet at least two of the three eligibility criteria to be declared a major project. These cover regional benefits and impacts, the range of planning and other approvals required and the complexity of the project,” Minister Ferguson said.
“I have concluded that while the hotel would be significant for the local area, it does not have the regional impacts or complexity required for a major project.”
Project Director Greg Hudson said Chambroad still intends to proceed and build the Kangaroo Bay Hotel, having spent 6 years and “some $14 million” on it.
“We believe the Major Project pathway would have been the fairest way forward for all concerned,” Hudson said.
“Chambroad would have commenced site works by now under its modified proposal submitted to the Clarence City Council earlier this year.”
The developer and council are currently locked in a legal battle for control of the Kangaroo Bay land, which Hudson says he is “keen to resolve”.
Minister Ferguson called on the council to assess the project “without prejudice” as a normal development application.
“I instead urge the Clarence City Council to carry out its legal obligations under the planning legislation as a planning authority, should the hotel be submitted for approval under the regular assessment process,” Minister Ferguson said.
