Plans for a 155-room hotel on Hobart’s eastern shore are now open for public comment, with a decision on the $65 million waterfront project expected later this year.
The Tasmanian Planning Commission has put the Kangaroo Bay hotel on public exhibition until July 1, giving locals a chance to have their say before an independent panel decides whether to approve it.
The hotel, proposed by developer Chambroad, would be built near the Bellerive Yacht Club.
It would include restaurants, bars, function rooms, four separate hospitality venues, public open space along the foreshore and 91 car parking spaces.
The project has been caught up in a years-long planning battle. The Clarence City Council rejected the hotel in 2023.
Chambroad then tried to have it assessed as a major project, but then-planning minister Michael Ferguson ruled in September that year that it was not eligible, describing it as an “excellent local project” that lacked the regional impact required.
Previous planning minister Felix Ellis later declared it a major project, taking the decision away from the council and handing it to an independent panel.
The council and developer are also locked in a Supreme Court dispute over the land, which the council wants to buy back.
Project director Greg Hudson has called for the dispute to be resolved commercially.
He said the panel’s recent assessment report was a “significant milestone” and that the proposal met “the overwhelming majority” of the criteria against which it was being judged.
He said the hotel would become a “world-class waterfront destination” and a year-round drawcard for locals and visitors.
“The Kangaroo Bay hotel is designed to become a premier tourism and hospitality destination, supporting Tasmania’s visitor economy while creating a vibrant year-round hub for locals and visitors alike,” he said.
But while the panel found the developer had addressed every assessment criterion, it also pointed to gaps and inconsistencies in most of them.
It said some parts of the plan were covered only “to some degree”.
The panel raised concerns about thin detail on building materials and colours, poor-quality images and plans that appeared to show work in the River Derwent, despite the developer saying none would take place.
The Clarence City Council was the most critical, especially on parking and traffic.
The council said the plan wrongly relied on a nearby overflow car park that had already been set aside for another development.
It also said the case for cutting on-site parking to half the usual requirement did not stack up and was likely to underestimate demand, given how many tourists in Hobart get around by car.
A peer review within the council’s submission found traffic queues at the Rosny Hill Road intersection had not been properly assessed.
The panel has 90 days after the exhibition period closes to make its decision.
Under the major project rules, there is no right of appeal if the hotel is refused or approved with conditions the developer does not accept.
