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Councillors vote to take hotel incentives package to community consultation

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Proposed height and parking relaxations for hotel developments will go out to community consultation after a majority of councillors agreed to support a motion put forward by the mayor.

A council officer’s report to last week’s general meeting had recommended the council adopt a hotel incentives package, including 3m-7m height relaxations, and waivers and discounts on fees and charges, to attract upmarket hotel developments to help meet a shortfall prior to the Olympics.

The incentive package would apply to hotel applications lodged by September 2026 on sites in limited areas of Mooloolaba, Alexandra Headland, Maroochydore, Caloundra, Beerwah, Sippy Downs and Nambour, and construction would need to start by June 2028.

Mayor Rosanna Natoli put forward a motion to accept part of the package – a policy containing discounts and waivers – but deferring consideration of a Temporary Local Planning Instrument (TLPI), containing height and parking relaxations, to allow for public consultation.

Unlike a change to the planning scheme, a TLPI does not legally have to be put out for public consultation.

Introducing her motion, Cr Natoli reiterated points in the report about the “urgent” need for internationally branded and operated hotels, saying “even just two or three of these hotels would make a massive difference to our economy”, but said the community should have their say on the TLPI and its height and parking elements.

Rosanna Natoli.

“We absolutely want to signal to industry that we are serious, that we welcome investment, we will work with you, and our community deserves to be consulted on changes to our planning that impact them,” Cr Natoli said.

“Building height and carparking provisions are extremely important and impactful to our community.

“Likewise, it is vital for us to understand industry and stakeholder sentiment. Putting this out to community consultation is the right thing to do.”

The hotel incentives package produced the longest debate of this term of council so far as councillors asked a number of questions of staff before stating their own positions over 90 minutes.

Councillor Ted Hungerford, whose earlier questions to council staff had elicited the value of incentives to be worth more than $500,000 for a 140-room hotel, was “fairly disappointed” the mayor’s motion was only about consulting on part of the incentive package.

“It should all go out to the community to have a say on all aspects. Just to cherry pick the things that suit you doesn’t cut it with me,” he said.

Cr Hungerford said he had heard what the community wanted on height and density and “they don’t want it”.

The council will carry out community consultation on height and parking relaxations for hotel developments. Picture: Shutterstock

Addressing questions, head of economic development Chris Le Serve said there were “six or so” hotel opportunities “in the pipeline” but two would “certainly fall away” if there was a material delay in introducing the TLPI.

Head of strategic planning Stephen Patey acknowledged development incentives were already in place at Nambour and Caloundra but had not produced results at Nambour.

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Councillor Terry Landsberg recognised the expertise of planning staff who put together the report to the council and noted demand for international hotels had been identified as early as 2017.

Councillor Joe Natoli described the incentives as “modest” and said he would be happy if the incentive package got five hotels out of the ground but he was prepared to support consultation.

Council Christian Dickson, whose portfolio is development assessment, said he had fielded “enormous inquiries” about the community consultation and he felt the mayor’s motion was balanced.

Councillors Maria Suarez and Jenny Broderick said they always supported community consultation, and Councillor Taylor Bunnag said he did not believe the economic risk was serious enough not to consult with the public on the TLPI.

Councillor Tim Burns said the council should always look at the community’s position but warned the quality of feedback was “challenging” and did not always provide “clarity”.

The vote was eventually 10-2 to adopt the mayor’s motion, those against being councillors  Hungerford and David Law, who remained unconvinced of an urgent need for a TLPI after asking questions of staff.

Councillor Winston Johnston did not vote as he had left the meeting prior to the discussion because he felt unwell.

The CEO will be required to report back to the council in December about public feedback to the TLPI. Even if approved by the council, it will still need state government approval.

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