Eden's Sapphire project on hold as developer's battle with council persists

CAD's senior adviser John Palasty said a story in national media on Sunday, May 21 was not correct in stating the company was planning to build 40 townhouses instead of the five star hotel and three apartment blocks.

However, it looks likely that any development at the Imlay St site is on hold for the time being.

"We may hold on to the site, we may sell it," Mr Palasty told ACM.

"We are currently reviewing our position. There are no issues relating to the development of the Sapphire and we're working hard to reinstate the Telstra tower," he said, adding he was waiting for council to complete a sub-division so the tower could be moved.

CAD and Bega Valley Shire Council have had a stormy relationship for some time.

In September 2022 Mr Palasty said the hotel complex would not be going ahead and blamed council for approval delays around decisions on whether a roundabout was needed at the intersection of Chandos and Imlay Streets.

In March 2023 the matter was settled in mediation at the Land and Environment Court after 14 months when council conceded a roundabout would not be required. But in the meantime building costs has escalated and the contract with existing buyers would be broken if the homes were not ready by September 2023.

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The Sapphire is a potential multi-million dollar bargaining chip, particularly when Mr Palasty said he still had issues with council over the award-winning Australasia Hotel.

The hotel was highly commended in the conservation and built heritage category of the National Trust Heritage Awards, which celebrate the best in Australian heritage conservation.

Among the issues with council, Mr Palasty said "council wants a DA for a chef's herb garden at the back of the Australasia". It was one of several issues relating to the stage two development of the hotel that he planned to take to the Land and Environment Court.

"We are in battle mode on the Australasia," Mr Palasty said.

"There's been 40,000 people through it in the last 20 weeks. The Australasia and the Coast Motel [which CAD also owns] are running at 70 per cent occupancy."