Hotel sale surprises Patonga residents

The Patonga Community Working Group has said residents were surprised by the decision to sell the Patonga Beach Hotel and Fish Shop just 24 months after the property was purchased by current owner, Mr Andrew Smith.

The iconic Patonga tourist attraction has been listed for sale with Ray White Hotels Australia and Manenti Quinlan and Associates, who are wrapping up a four week International Expression of Interest Campaign, concluding September 8.

In December last year, the owner submitted an application to Council proposing a $2.2 million redevelopment and expansion of the hotel, including the conversion of the existing first floor accommodation above the hotel into more bars and a bandstand, and creation of a purpose-built 150 seat reception centre above the fish shop.

Working Group chairman Mr Ross Trembath said a large number of the Patonga community were alarmed by the overdevelopment of the site, and expressed their concerns in more than 70 written objections to Council.

"This represents a high level of concern from a foreshore settlement of just over 200 dwellings," he added.

"In an article in The Peninsula News (August 22), Mr Smith stated that 'market conditions suggest it is an opportune time to release the improved asset and benefit from the return on investment.'

"In doing so the owner appears keen to disassociate community opposition to his development from his decision to sell.

"He insists the sale will not hinder the development and dismisses community opposition as a familiar part of the development process," Mr Trembath continued.

According to Mr Trembath, the Working Group's consultations with the Central Coast Council had been constructive and the community's concerns were being heard.

"We understand that the developer submitted a revised set of plans to Council in early August just prior to listing his property.

"Although our group has not yet seen the amendments, they are understood to have removed the new bar areas on the first floor of the hotel, and to have conceded a three metre setback from the adjoining rear property rather than extending hard up against the fence.

"Both of these amendments address issues raised in the community submissions, and the applicant's revised plans at the request of Council is a sign our submissions are well founded," Mr Trembath said.

"However, the contentious wedding reception centre above the fish shop has been retained, and a revised traffic/parking report is still yet to be submitted.

"The owner still has to realise that the site's 'B1 Neighbourhood Centre' zoning provisions also apply to the proposed second storey function centre," he added.

The marketing campaign for the sale of the hotel is being pitched to international or corporate owners, with potential buyers invited to see comparisons to iconic waterfront properties such as Bannisters at Mollymook and Halcyon House on Cabarita Beach.

Mr Trembath said that while there was no doubt Patonga was as beautiful as Mollymook or Cabarita that was where the similarities ended, with the two multi-storey hotels on those sites, both with their own award winning restaurants and between 20-30 accommodation suites being a developer's paradise.

"The Patonga site is a shade over 1540m and already developed to its full potential under the relevant planning provisions.

"We have no objections to the proposed internal renovations and a new kitchen at the ground floor level.

"However, it is the community's view, based on expert advice, that the hotel site has reached the limits of its development potential based on economic, social and environmental planning grounds and only has the potential for renovations rather than expansion.

"This is the scenario that any responsible owner faces and the community supports," Mr Trembath said.

In July, the community held a sold-out fundraiser to boost its fighting fund and Mr Trembath said the community knows that a potential change of owners will not necessarily mean an end to this or other development proposals.

"We are committed to maintaining the unique visual and residential quality of the village for residents and visitors alike.

"We hope the next owner shares that vision and is more realistic about the scope and scale of the business," Mr Trembath concluded.

Media release, 29 Aug 2016

Ross Trembath, Patonga Community Working Group