Controversial billionaire Clive Palmer is poised to reclaim full control of the once-shining Coolum resort that he took from fame to shame.
The big question is what will he do with it?
You can never be certain with Mr Palmer, but sunshinecoastnews.com.au has done some digging and put together the most likely scenarios and examined their impact – both good and bad – on the Sunshine Coast and its residents and economy.
BACKGROUND:
Mr Palmer bought the tourism jewel in 2011 when it was managed by Hyatt. He soon turfed them out, made changes that saw 600 jobs lost and had no luck reviving interest in the renamed (using his name, of course) and repainted (using his political party colours) attraction.
Adding a dinosaur park and motor museum did little to pique interest, and scathing reviews pointed to a “ghost hotel’’ that was under-resourced and poorly maintained.
As some of the villas were part-owned or owned by individuals, he entered into a protracted battle for total control of the property.
Mr Palmer is now set to take full ownership after reaching a court settlement, that will cost about $21 million, with its 300-plus villa owners.
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After an eight-year battle, the villa time-share owners are out the door.
It means Mr Palmer can now do what he wants with the site and there are a few options.
SCENARIO 1:
Mr Palmer sells the entire property – one of the best real estate parcels in Australia – to a developer, perhaps Japanese company Sekisui House, which has a nearby high-profile project.
Conclusion: Considering Mr Palmer’s history, this is highly unlikely because he doesn’t usually sell prized assets and is more of an accumulator.
SCENARIO 2:
He does nothing and the golf course remains open, but everything else sits there and rots while he waits for the property market to get even hotter and he achieves even more cash for the estate in coming years.
Conclusion: This is unlikely because Mr Palmer rarely sits still and always seems to have a new iron in the fire.
SCENARIO 3:
Mr Palmer chases his mooted former dream of establishing a resort for Chinese tourists with a casino as the essential element. This was a concept that emerged during the Newman Government era.
Conclusion: While he might like this, it would be controversial and there would be a mountain of red tape. International tourism also has a huge question mark over it, at least in the short term.
SCENARIO 4:
The billionaire maintains the golf course and immediate surrounds and develops the rest of the 150ha property into an exclusive residential estate and adds another sizeable chunk to his massive personal fortune.
Conclusion: Don’t forget Mr Palmer was originally a property developer. He has also recently applied to develop one of his Gold Coast properties into a “medium density” estate, so this scenario is not out of the question.
The former Hyatt Regency Coolum hosted the Australian PGA Championships, with players like Geoff Ogilvy in 2008. Picture: AAP
SCENARIO 5:
Mr Palmer further improves his trophy golf course, which is already in great shape, to ensure it is again championship quality. He renovates the existing buildings at the resort, including villas, restaurants, pools and conference areas. Mr Palmer expands one of his existing entities to manage the revamped resort and opens it to the public. It’s back to the future for the former tourism drawcard – but no doubt with a twist!
Conclusion: This is probably the most feasible scenario. He has plenty of money now so really doesn’t need to sell, or develop, the site in pursuit of more. The wildcard, and there will always be a wildcard when it comes to the man who sought to combine dinosaurs and vintage cars as an attraction and run Titanic cruises, is what fad he will incorporate into the property. And we can’t wait to see the colour scheme!
WHAT’S ACHIEVABLE:
Under the Sunshine Coast Council’s current planning scheme adopted in 2014, the Palmer Coolum Resort is approved for an 8.5m building as well as residential.
However, like the controversial nearby Sekisui House site, it is zoned “emerging community” under the town plan, which some residents fear is too broad and could allow for taller buildings and “affordable” housing.
WHAT THE VILLA OWNERS THINK:
Villa owner Chris Shannon said the current zoning would “leave it open to do what Sekisui House are doing across the road’’.
Mr Shannon also said Sekisui was the “logical owner’’ of Mr Palmer’s resort, a persistent rumour that has led to nervousness among some Coolum locals.
Sekisui House’s contentious development of a seven-storey hotel near the beach and 740 dwellings was approved in 2018 but is currently held up in court after Development Watch appealed council’s 6-5 decision.
WHAT THE LOBBY GROUP THINKS:
Development Watch president Lyn Saxton said the resort’s “emerging community’’ zoning was “too broad and doesn’t protect the resort as a tourism asset’’.
Ms Saxton said residents did not want a repeat of Sekisui House at Palmer Coolum Resort.
Development Watch wrote to Sekisui House in 2018 seeking clarification of rumours that the Japanese company was planning to buy Palmer Coolum resort.
A response from Sekisui House said Sekisui had not purchased Mr Palmer’s resort.
Ms Saxton said the former Hyatt Regency Coolum had been one of the most prestigious international golfing havens in Australia before Mr Palmer bought it in 2011 and should have been protected.
WHAT OUR TOURISM BODY THINKS:
Visit Sunshine Coast spokesperson Andrew Fairburn said the region needed a resort the calibre of the former Hyatt Coolum.
“The Hyatt Coolum played a key role in developing the Sunshine Coast’s tourism and accommodation infrastructure,’’ the spokesperson said.
“There is no doubt the region requires major integrated resorts such as the former Hyatt if we are to capitalise on the upgrade to the airport and the region’s high visibility as a highly-desirable destination for leisure, business, conference and events travel.”
THE HISTORY:
The former Hyatt Regency Coolum hosted guests like the Queen and then Prime Minister John Howard at the Commonwealth Heads of Government Meeting (CHOGM).
It was also famous for hosting the Australian PGA Championships, which attracted some of the world’s finest golfers and attracted massive publicity.
COUNCIL’S RESPONSE:
A Sunshine Coast Council spokesperson said there were no plans to change the zoning again at the property.
“The specific intent for the Palmer Coolum Resort site is that it continues to be developed as an integrated tourist and residential development focused around an 18-hole championship golf course and large areas of open space,’’ the spokesperson said.
“Council has no current intention to change the zoning of the Palmer Coolum Resort site.
“The Emerging Community Zone provides for a range of housing types, dependent on the context and setting of the site and character of surrounding areas.
“Development in the Emerging Community Zone at the Palmer Coolum Resort site is regulated in accordance with an approved master plan and plan of development.’’
