Proposed Kangaroo Bay hotel in jeopardy as costs rocket

The hotel component of a proposed hospitality training school at Kangaroo Bay in Tasmania is in doubt, with the developer questioning its financial viability.

Clarence Mayor Doug Chipman’s report on the multimillion-dollar hospitality school development indicates the Chinese-based developer Shandong Chambroad developer may divide construction into two stages.

The report also said the developer had questioned the financial viability of the hotel which could cost as much as $80 million to build, $30 million more than the original estimate.

Chambroad has already spent $9 million on the project, while Clarence City Council has spent $15 million on improvements to Kangaroo Bay.

“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,” Chipman wrote.

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

Any further delay seeking new permits “would jeopardise the prospect of substantial development before November”, according to the report.

The hospitality training school and hotel development has so far been delayed due to the wait for an educational provider to commit to the project. However, the council has threatened to buy back the waterfront land if substantial progress is not made within six months.

Sheridan Randall, 21^st June 2019