The decision on whether the Kangaroo Bay hotel and hospitality school development is granted an extension or not will be voted on by Clarence City Council on Monday night, with details of a Modified Development proposal put forward as an alternative by Chambroad also outlined in the meeting agenda, made available today.
The recommendation from officers in the report is that Council:
- Notes the terms of the ‘Standstill Agreement’ negotiated between Council and Chambroad Overseas Investment Australia Pty Ltd (Chambroad), dated 14 October 2022, requiring Council to advise Chambroad on or before 5.00pm, 21 December 2022:
- If Council does not accept the Modified Development proposal; and
- Whether or not Council consents to Chambroad’s request for a further extension of time to satisfy clause 6.3 of the current Sale and Development Agreement (SDA).
- Does not consent to Chambroad’s request for a further extension of time to satisfy clause 6.3 of the SDA (as made by a letter, and supporting letter, dated 27 September 2022) and subsequently deferred in accordance with the Standstill Agreement, to achieve substantial commencement of the project under the current SDA, for the reasons set out in this report (specifically at paragraphs 2.12 to 2.16 of the Associated Report).
- Does not accept the Modified Development proposal provided by Chambroad (Attachment 3), on the basis that:
- there has been inadequate time to properly consider the Modified Development proposal, and insufficient detail as a consequence of time constraints;
- there has been no public consultation on the Modified Development proposal undertaken by Chambroad and therefore no opportunity for Chambroad to consider that feedback and refine its design before seeking the agreement of Council; and
- As of 14 December 2022, Chambroad communicated that they would not include concept designs in the information pack to be released with this agenda item and sought for the draft Development Agreement, which was negotiated under the ‘Standstill Agreement’, to remain confidential at this stage. Both these circumstances were contrary to clearly stated requirements put forward by council officers at the commencement of this current process.
Clarence City Council Mayor Brendan Blomeley said the development of Kangaroo Bay was a project of strategic importance for our City and he was looking forward to Monday night’s discussion.
“We have a diverse representation around the table and Monday night will provide an opportunity for all voices to be heard and votes to be placed on the record,” Mayor Blomeley said.
“This has been a long process, and we cannot change what has happened in the past.
“It is now crucial we give proper consideration to options given to council so we can ensure the best outcome possible is achieved.
“Now all the information is available I am looking forward to the thorough and considered debate we will have at the meeting on Monday.”
Council’s meeting will be held on Monday, 19 December at 7pm. Members of the public can register to attend on council’s website, or livestream via the link on council’s Facebook and YouTube pages.
The agenda can be viewed here.
ENDS
Background
Project Timeline:
2008 – Council adopted the Kangaroo Bay Urban Design Strategy and Concept Plan (KBUDSCD) to identify its long-term goal for the area to be a ‘significant visitor and leisure destination within the City of Clarence and Southern Tasmania’.
2010 – A Memorandum of Understanding (MOU) was entered into with the State Government to implement the Kangaroo Bay Urban Design Concept Plan.
2015 – Expressions of Interests (EOI) were requested for parties to develop the area in line with the KBUDSCD.
2015 – Hunter Developments was chosen as the preferred submission and was invited to participate in Stage two of the EOI process. Through this process it was confirmed Hunter Developments had secured an investor: Shandong Chambroad Holding Group Co Ltd (Chambroad).
2016 – Council and the Crown entered into an agreement to enable the transfer of parcels of Crown land to Council ownership, to provide for the sale and development of the site.
2017 – Ownership of the Crown land at Kangaroo Bay was transferred to council.
2017 – Council entered into a Sale and Development Agreement (SDA) with Chambroad.
The agreement included:
- An obligation for Chambroad to develop the land as a hotel and hospitality school,
- Substantial commencement to be made within 12 months of completion of the Agreement.
- The Agreement also included an option for council to buy back the land for the original sale price, if Chambroad failed to meet these conditions.
2018 – TasTAFE withdrew from the project.
2019 – Chambroad entered into a MOU with the University of Tasmania (UTAS) for the operation of the education component of the development.
May 2019 – Council approved a six-month extension to the SDA following a request from Chambroad, to enable it time to secure a contractual agreement with UTAS.
November 2019 – Council granted a further extension for substantial commencement to be achieved by 14 October 2020.
October 2020 – A recommendation to provide a further extension of time was lost.
December 2020 – Request to provide extension of time until 13 October 2022 was granted.
June 2021 – Chambroad advised council that:
- UTAS withdrew from the project due to the impact of COVID-19 on student numbers.
- It was considered by Chambroad that it was unlikely another hospitality and tourism college partner would be found due to changes in education market conditions.
- They (Chambroad) remained committed to the project and do not intend to exit.
September 2022 – Council received a request from Chambroad for a further extension of time to achieve substantial commencement until 13 October 2024.
October 2022 – Due to the Local Government Elections, Council and Chambroad agreed to a ‘Standstill Agreement’ which expires at 5.00pm on 21 December 2022 to consider the request for a further extension of time and to consider a Modified Development proposal put forward by Chambroad. Council is required to notify Chambroad prior to that time and date whether or not it grants the requested extension.
19 December 2022 – Council will decide on whether or not to grant a new extension of time as well as consider the Modified Development Proposal put forward by Chambroad.