Clarence Mayor Brendan Blomeley says a stalled $65 million hotel at Kangaroo Bay on Hobart’s eastern shore should never have been fast-tracked while his council is fighting in court to buy the land back.
The Tasmanian Planning Commission released its initial assessment of the 155-room hotel this week, a step welcomed by the state government and developer Chambroad.
But Blomeley says the milestone means little while ownership of the site remains unresolved.
The Clarence City Council is in a legal battle to reclaim the land from Chambroad, with the matter due before the Supreme Court late this year or in early 2027.
“We are in the middle of a legal process to buy back the land,” Blomeley said, adding that the council had a “legal right” to do so.
“Granting major project status before the legal proceedings have concluded is a waste of public money and resources at a state and local government level.”
Blomeley argued the hotel never qualified for major project status in the first place.
He said the proposal approved in October 2024 was almost identical to one rejected by then-planning minister Michael Ferguson the previous September.
“When the major project status was granted, it set a dangerous precedent and a very low threshold for future major projects applications in Tasmania,” he said.
Premier Jeremy Rockliff backed the project, describing it as a win for the state.
“This $65 million development will be a gamechanger for the eastern shore, breathing life into an underutilised waterfront site with significant potential,” Rockliff said.
He said it would create up to 100 construction jobs and more than 400 operational roles.
Labor’s shadow planning minister Dean Winter sided with the council.
“It is completely absurd that the government is participating in a sham planning process for a property where the ownership and tenure are entirely uncertain,” he said.
“I support genuine, sustainable investment that creates local jobs. I do not support a premier who uses the independent planning process as a political shield to cover up a decade of inaction.”
“Like Mayor Brendan Blomeley, I want to see the site developed in line with community views.”
Chambroad project director Greg Hudson said the hotel was planned to become a “premier tourism and hospitality destination” once built.
“This landmark development will deliver a world-class waterfront destination featuring a 155-room hotel, restaurants, bars, function facilities, publicly accessible open space and enhanced foreshore connections from Rosny to Bellerive Village, further strengthening greater Hobart’s tourism and hospitality offering,” he said.
The proposal now heads to public submissions and hearings before a final decision in the coming months.
