Core Asset Development Pty Ltd (CAD), the developer of the $120 million “The Sapphire of Eden” hotel and apartment project, as well as the refurbishment of the 120-year-old Australasia Hotel, has stopped work on both projects because of Bega Valley Council’s bungling of the various consents allowing both projects to proceed.
The construction of the CAD projects in Eden was expected to generate more than 1,200 jobs and 300 ongoing jobs, the majority of which were to be generated among Bega Valley locals.
Mark Toma, managing director of CAD said “Bega Valley Council has deliberately slowed the projects due to a roundabout dispute, with the Sapphire of Eden to have had 86 apartments and an 80 room Raddison-managed hotel.
“The council’s poor handling of the various consents for the Sapphire of Eden has been going on for over one year and six months on the Australasia, with the community the loser as both developments would have generated much needed jobs in a regional economy and important hospitality and tourism infrastructure in an area where cruise ships have now returned.
“Construction on the site of the former Eden Fishermen’s Recreation Club for The Sapphire of Eden and the renovation of the Australasia Hotel, which was in its final stages with an expected opening date mid-October, have now been halted because of the council’s appalling behaviour.
“Previously agreed written commitments and development and various meetings to allow the construction of the projects to continue have been thrown out by council officers, who now have made unrealistic demands, with the whole approval process bogged down over many months.
“CAD was proud to be leading the charge in the revitalisation of the South Coast’s hospitality and tourism infrastructure, but we could not keep investing millions of dollars in both projects when faced with continuing obstacles erected by the incompetence of the council and its underlying agendas.
“Council officers have also advised us that the council have about 500 development applications sitting on their desks, with many dating back to the bushfires from two years ago.
“It seems to us that the NSW Government is no longer interested in regional tourism, with the Planning Minister Anthony Roberts refusing to meet with us”, he added.
CAD Group has commenced actions in the NSW Land & Environment Court and regulatory bodies against the council.
The Australasia Hotel was expected to be re-opened in mid-2022 with restaurants, outdoor eateries and a heritage bar called “John Hines Bar”, a vodka and gin cellar door and outdoor theatre. The Sapphire of Eden project was due to open at the end of 2023.
