Developer hotel doubts

THE hotel component of the multimillion-dollar Kangaroo Bay development could be delayed as the builder contemplates seeking new permits.

After saying he was “feeling confident” about the project in a media release on Monday, Clarence Mayor Doug Chipman’s report on his recent China visit suggests the developer may divide construction into two stages and delay the hotel. The report, tabled at Monday’s council meeting, showed Chinese developer Shandong Chambroad had doubts about the hotel’s financial viability.

Alderman Chipman said Chambroad estimated the hotel could cost up to $80 million to build — up from what was initially $50 million.

Chambroad has spent $9 million so far, while Clarence City Council has spent $15 million on Kangaroo Bay improvements.

“Chambroad’s point of view … strongly implied a new development application would be required to accommodate up to 150 students at any one time — current approvals have 105,” Ald Chipman wrote.

“[Chambroad] suggested the hotel itself should become stage 2 of the project, possibly with a significant delay.”

Ald Chipman said he told the company a delay in seeking new permits “would jeopardise the prospect of substantial development before November”.

The council has threatened to buy back the waterfront land if substantial progress is not made in six months.

The hospitality training school and hotel has already been delayed due to the wait for an educational provider to commit to the project.

Chambroad will meet the University of Tasmania, which has expressed interest in being part of the facility. Representatives of the Chinese company are to visit Tasmania next week.

“We are looking forward to next week’s visit by representatives from Shandong Chambroad and furthering discussions with them about the Kangaroo Bay development,” University Vice-Chancellor Professor Rufus Black said.

Clarence Alderman Richard James said the project may not proceed if an educational provider does not sign on.

Cr Tony Mulder said it seemed the Mayor had learned nothing on the China trip he did not know before.

Ald Chipman said he had “constructive discussions” with Chambroad, including with chairman Ma Yunsheng.

“All parties have confirmed a strong commitment to this project and we are feeling confident about the development of the important Kangaroo Bay precinct,” he said.