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Sunshine Coast Council’s Accommodation Hotel Incentives Package

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development update

Sunshine Coast Council vote to adopt Hotel incentives but delay Temporary Local Planning Instrument for increase in building height and reduced car parking rates

At the Sunshine Coast Council’s Ordinary Meeting on Thursday 29 August 2024, the draft Accommodation Hotel Incentives Package (‘package’) was heavily debated amongst Councillors.

The package includes a proposed Incentives Strategic Policy and Temporary Local Planning Instrument (TLPI) specific to hotel accommodation within certain parts of the region.

According to Council, the Sunshine Coast hotel market estimates a need for 2,150 new hotel rooms and 300 boutique hotel rooms to meet the current shortfall for tourism and to address the need for high quality hotel rooms in the lead up to for the Brisbane 2032 Olympic and Paralympic Games.

Tourism accommodation on the Sunshine Coast is predominantly made up of apartments/units more suited to long-stay leisure guests and families. With a gap in the market for overnight, short-stay and business travellers, Council developed the package with the aim to attract internationally and nationally branded hotels ranging from upper-midscale (3.5-star) to upper upscale (4.5-star) to support the required growth.

Importantly, the Brisbane 2032 Olympic and Paralympic Games is only 8 years away, so in recognition of the financial challenges and time constraints that come with delivering hotel development, Council prepared the combination of targeted policies, incentives and planning initiatives. The aim being to attract the hotel investment to stimulate the delivery of accommodation needed.

In brief

The Accommodation Hotel Incentives Strategic Policy provides financial and non-financial incentives to encourage the development of accommodation hotels (e.g. provision of a dedicated development assessment team, waiver of development application fees, and reduction and deferments in infrastructure charges).

Whereas the TLPI (Accommodation Hotel Incentive Measures) proposes to provide additional building height allowances and reduced car parking rates (in specific zones/locations only).

The general nature and intent of a TLPI is that is can be put in place quickly, deals with specific, localised issues and temporarily prevails over the Planning Scheme for up to two years.

Council endorsed the adoption of the Accommodation Hotel Incentives Strategic Policy at Thursday’s meeting, yet despite the urgent need for more accommodation hotelsvoted to delay the adoption of the TLPI until they undertake community consultation.

Our Opinion:

The decision to undertake community consultation on the TLPI is an unusual step for a Council to take, with the Minister’s Guidelines and Rules 2024 detailing that community consultation is not required to be undertaken by Council when making a TLPI.

It is Council’s aim to have the consultation undertaken over a 20 business day period, with the results of the consultation presented at the December ordinary meeting. This brings with it a delay of no less than 3 months on top of the TLPI having to be signed off by the State Planning Minister for approval.

Links to Council’s resources can be accessed/read in full here:

ADAMS + SPARKES will continue to keep tabs on any progress and provide future updates, however don’t hesitate to get in touch with any questions or to discuss further.

Cameron + Pete

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