Hotel Indigo land to be sold

THE proposed Hotel Indigo in Torquay might not get off the ground as the land it is to be built on is going onto the market, but the developer behind the project says this is not true.

TMASL Finance, as the mortgagee in possession executing rights to the power of sale, appointed McCartney Real Estate on March 8 to have exclusive sale authority for the land at 2-4 Geelong Road where Barnes Capital is proposing to build the five-storey, 128-room hotel.

McCartney Real Estate agent Tim Carson said on Tuesday he would be selling the site, across two titles, at a price between $2.4 million and $2.6 million.

A mortgagee in possession sale occurs when the borrower (in this case Barnes Capital) cannot repay the mortgage on a property, allowing the lender (TMASL Finance) to take possession of the property and sell it.

Barnes Capital managing director Martyn Barnes said he was unaware that the land was to be sold when the Surf Coast Times contacted him this morning.

He said he had been advised by his legal representatives – Bancroft Lawyers – that the land was not for sale and there was no mortgagee by possession sale.

“I have been advised that if there are any of those issues you need to speak with those parties.”

News of the potential sale comes only a week after Barnes Capital succeeded in having a question of law about Hotel Indigo ruled in their favour at the Victorian Civil and Administrative Tribunal (VCAT).

Torquay-based 3228 Residents Association, who were a party to the proceedings, are “disappointed” in the decision and say the ruling shows the Surf Coast Shire council’s planning scheme is “ineffective and substantially flawed”.

The shire rejected the developer’s planning application on several grounds, including that it did not meet the minimum garden area requirement of 35 per cent in the Surf Coast Planning Scheme.

Barnes Capital appealed the shire’s decision to VCAT and the February 27-28 meeting specifically discussed whether the site was exempt from this requirement, on the basis that the subject land was designated as a medium density housing site in an approved precinct structure plan or equivalent strategic plan.

In his decision, handed down last week, VCAT senior member Geoffrey Code found the land in question was exempt as it was a medium density housing site in an approved precinct structure plan or equivalent strategic plan.

In a statement issued last week, the 3228RA committee said last week’s decision was “just one example of the contradictions in the planning scheme that are being manipulated by developers to subvert the intention of the planning scheme, and allow unwanted developments”.

“In this case, the council thought its planning scheme required a minimum garden area for medium density sites; this assertion was proven to be in error. Will council now change the planning scheme to alter this, and many other, inconsistencies in the scheme? We request a complete review that takes into account all recent VCAT decisions that went against council and adjust the scheme accordingly to prevent further inappropriate developments.”

3228 says it will continue to oppose Hotel Indigo on the grounds it is “overly high, not of coastal character and insufficient carparking”.

“We are requesting the council to strengthen their opposition by committing to pay for expert witness reports, of the same number and expertise as the developer is providing, to be presented to VCAT at the merits hearing to be held later in the year.”

In March, Mr Barnes said his company would continue to argue for the hotel to get planning permission, regardless of VCAT’s ruling on the question of law.