ISLAND GEM NEEDS TIMETHE
Resort chief’s plea as destinations face challenges
complicated business of turning a profit on Far North Queensland islands has claimed a growing line of ambitious investors who bit off more than they could chew.
Plenty have failed but a few have flourished – and others are desperately trying to keep their heads above water right now.
Fitzroy Island Resort owner Doug Gamble has gone to Cairns Regional Council to request more time to carry out a long overdue redevelopment of the site, saying he still needs to find investors to come on board and get the project over the line.
Fitzroy Island’s redevelopment trials and tribulations are outlined in a detailed document revealing how difficult it has been to bankroll the project.
FITZROY ISLAND tycoon Doug Gamble has pleaded for more time to rustle up the funds to complete a long overdue redevelopment of his ageing resort.
In a new application to Cairns Regional Council, the Fitzroy Island Investments owner asks for a time extension on existing development approvals and details a long line of hurdles the multimillion-dollar project has faced.
First off the ranks was a refusal from the State Government to grant Mr Gamble freeholding over the property – which was a loan requirement for Australian banks.
“The applicant expended a considerable amount of time and effort trying to resolve the issue of land tenure (since the 2011 redevelopment ap- proval),” the document states.
Mr Gamble bought the resort for an $8.5 million bargain in 2010 and put it back on the market in 2016 with expectations of a $30 million payday that failed to eventuate.
He is now bypassing the banks and seeking investment partners to spruce up his paradise retreat.
“Negotiations with various financiers through 2015 to 2019 seeking possible alternate forms of funding failed to achieve funding certainty; however, the applicant is still exploring alternatives to ensure completion of the resort,” the report states.
The project has now been decommissioned with new designs being drawn up while more funding is pursued for the Stage 2 works, including about 20 new rooms, gym, wellbeing centre, kids playground and a cinema.
“During this period of delay, the market conditions relating to resort developments also changed dramatically,” the application notes.
“In this regard, it was determined that additional rooms would be required at the Fitzroy Island Resort to achieve long-term sustainability to accommodate the changed market demands.
“An extension to the current period would allow the applicant to resolve the issues detailed above and proceed with the development to achieve adequate stock of guests’ rooms to meet market demand for accommodation and Fitzroy Island Resort to ensure the long term sustainability of the resort.”
If the extension is approved, Mr Gamble will be forced to jump through all of the same hoops he did in order to gain approvals in 2011.