Waterfront Hotel developer Fairbrother paid $1.180 million for part of the former Best Street Car Park, the Devonport City Council has revealed following the signing of the contract earlier this week.
The price meets the market valuation obtained from an independent valuer and exceeds the offer provided as part of the original Expressions of Interest process.
Restrictions in the contract ensure that the only development allowed on the site is a hotel in accordance with the development approval.
Council has an option to purchase the site back at a reduced price if construction is not substantially commenced within 18 months.
Mayor Annette Rockliff said she was delighted the project was beginning to take shape with the first step in the process – the demolition of the former Harris Scarfe building – nearing completion. Council contributed $170,000 towards the demolition of the Harris Scarfe for the portion of the building which occupied the portion of the land which will remain in Council ownership.
''The Waterfront Hotel has always been a key part of the LIVING CITY master plan adopted in 2014 and will be a real driver for economic growth in our city,'' Cr Rockliff said.
''It is around a $40 million privately funded investment in our city's future"."
''Whilst Council has been required to do the heavy lifting with Stage 1, LIVING CITY has always been about unlocking this sort of private investment.''
Fairbrother Chairman Royce Fairbrother said the company considered the land sale price to be fair and it looked forward to developing an attractive hotel on the site
''We have our design team very busy doing the detailed construction design,'' he said.
''We still have some operational details to resolve but are aiming to close out all issues in coming months to coincide with the completion of construction drawings and the issue of a building permit. Demolition is anticipated to be complete around the end of April."
