Harbour Jetty-soned

Illawarra Mercury

Monday August 25, 2008

By ALEX ARNOLD

WHILE the future of the Shell Cove boat harbour remains in limbo, an ambitious proposal for a $520 million marina development at Shoalhaven Heads appears to have sunk.

Late last year Southern Sky Developments, a joint-venture partnership between the Colys Group, builders of the Kiama Blue hotel, and Queensland-based finance company OzzyConnect Pty Ltd announced plans for a harbour on the Shoalhaven River near Coolangatta Estate.

The early conceptual design over the 95-acre site comprised a new harbour and 200-berth marina, more than 750 residential units primarily aimed at high-density seniors living, hotels, shops, offices and light industrial lots.

At the time Nic Colys of the Colys Group indicated that the development would create 930 jobs and would generate $521 million in direct investment, plus a further $972 million in indirect investment.

Unlike the Shell Cove development, however, which received final State Government approval this year, the initial Shoalhaven Harbour proposal found little support from the NSW Planning Department or Planning Minister Frank Sartor.

The harbour was classified as a canal development - something the NSW Government had banned a decade ago.

Mr Colys said the company has had no success with the application.

"It has fallen on deaf ears," he said.

"We haven't 100 per cent resigned ourselves to it not going ahead, but we are probably about 90 per cent of the way there.

"When the website goes, the development goes."

Mr Colys added that plans for an environmentally friendly village at Kangaroo Valley were also on hold.

Shoalhaven's Mayor Greg Watson said if the harbour development didn't go ahead it would be a major blow for the region.

"I believe it had about 70 to 80 per cent support from the Shoalhaven Heads community, which was remarkable," Cr Watson said. "The major issue with the development goes back to Bob Carr's definition of a canal subdivision.

"Anything that involves digging a hole for boats constitutes a canal development and the red lights go on immediately."

Meanwhile a capital-raising campaign by Shell Cove developers Australand has put $364 million into the company's balance books in recent weeks.

Australand, Shellharbour City Council's partner in Shell Cove, is responsible for financing the $100 million boat harbour.

The Australian Financial Review reported that last week Singapore-based company CapitaLand Limited increased its controlling stake in Australand to 65 per cent from 53.3 per cent - a move worth $302 million.

Previously Australand said proceeds would be used to reduce gearing, fund development projects and take advantage of strategic growth opportunities, but whether this will affect the Shell Cove boat harbour is unclear as Australand is refusing to comment publicly on Shell Cove.

© 2008 Illawarra Mercury

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