Published on 04 October 2017
Devonport City Council has signed an agreement with Tasmanian construction firm Fairbrother Pty Ltd as the preferred proponent for the development of the LIVING CITY waterfront hotel.
Following an expression of interest process earlier in the year, a preferred proponent agreement has been reached with Fairbrother which allows them a two-year timeframe to bring the project to a stage where construction of the hotel development can commence.
Under the terms of the agreement Fairbrother will be responsible to develop, finance and construct the hotel and to appoint the operator. The value of the hotel development is estimated to be in the order of $40M and will likely take around two years to construct, with site works expected to start in 2019.
Devonport City Council Mayor Steve Martin said, “Council received submissions from both developers and operators as part of the EOI process and are very pleased that a local Tasmanian and in fact Devonport based firm has been selected as the developer. ”
“Fairbrother have an excellent reputation and to have them on board for this next exciting stage of LIVING CITY is a major benefit for the city. Fairbrother know the community, and they understand and fully support the premise of LIVING CITY.”
“This is an opportune time for this type of development in our city. Tourism throughout the state is booming and we want to be able to capitalise on that as much as possible.”
In relation to the operator of the hotel the submissions received from national and international operators through the EOI process will now be provided to Fairbrother to allow them to negotiate the final appointment.
Fairbrother CEO, Craig Edmunds said, “We have considered the possibility of doing something like this many times in the past, however the timing had never been quite right.
“You can already see the many positive impacts that LIVING CITY is having on the city, and this waterfront development adds yet another dimension to that.”
“The link to the conference centre that is currently under construction will be a major drawcard for any potential hotel operators.”
Subject to completing a number of requirements Council will finalise a sale contract with Fairbrother for the land. Parameters regarding the purchase price have been agreed with a final figure to be calculated once outstanding details are resolved.
It is anticipated that the hotel will be consistent with the design previously displayed for public comment as part of the LIVING CITY Waterfront Precinct consultation undertaken in late 2016.
The agreement with Fairbrother also provides an option to develop a marina as outlined in the LIVING CITY Waterfront Precinct Concept Plan.
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