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'Great opportunity': Paloma Paloma project demise opens door to new vision

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Queensland’s Top Tourism Town should grab the rare opportunity to create an architecturally pleasing, sustainable and outstanding community asset in partnership with a new developer in a key beachside location.

That’s the view of Caloundra Chamber of Commerce CEO Brady Sullivan after expressions of interest were called for the sizeable, prime development block that was earmarked for one of the Sunshine Coast’s most controversial resort projects in recent times.

Great fanfare surrounded the unveiling and official launch on April 4, 2022, of the $250million Paloma Paloma  hotel, apartments and retail development project in Caloundra.

An artist’s impression of what was the street view of the Paloma Paloma retail complex, topped by a residential tower resembling a cruise liner.

Construction was expected to start in August last year on the project that was touted as “unlike anything before on the Sunshine Coast”. It was set to completely transform the top of town at 1 Bulcock Street, and take two-and-a-half years to complete.

But the project seemed to polarise the community from the start when the then unnamed developer coated the entire site on Caloundra’s main street in bright orange as a marketing tactic in late 2021.

Not a sod was turned and, in March this year, Sunshine Coast News reported that all had gone silent from developer CURA Habitas Pty Ltd in communications, social media and on site.

The sales centre had closed and become deserted.

CURA Habitas remains registered on the Australian Securities and Investments Commission (ASIC) website as an Australian proprietary company based in Melbourne. And Paloma Paloma still appears on the Cura Habitas website as one of its projects.

Paloma Paloma project was described as “unlike anything before on the Sunshine Coast”.

But now a Colliers expressions of interest campaign seeks a new developer for the 5289sqm site that takes in 1-9 Bulcock Street and 45-47 Bombala Terrace.

A Sunshine Coast Council spokesperson said the property has a current approval for a Material Change of Use of Premises to Establish a Resort Complex, issued on December 18, 2020. The approval is still valid.

A Development Permit to Reconfigure a Lot was also issued at the same time.

“The approval runs with the land and if the property is sold a new owner can proceed with the approved development or they can lodge a separate application for consideration by council,” the spokesperson said.

The spokesperson said earlier this month that on March 31 last year, the applicant (123 Jonson Street Pty Ltd) had submitted a minor change application to modify aspects of the development.

Caloundra Chamber of Commerce CEO Brady Sullivan believes an opportunity exists to create a major community asset on the former Paloma Paloma project site.

“The applicant did not respond to council requests for additional information and did not request a further extension after the decision period ended on 5 May this year,” they said.

“On May 26 this year, the owner of the property (Caloundra Central Pty Ltd) withdrew their consent to the minor change application. In accordance with the Planning Act 2016, a change application must be accompanied by the owner’s consent.

“Although owner’s consent was provided at the time of lodgment of the change application, council can no longer accept the change application. Accordingly, the change application was returned to 123 Jonson Street Pty Ltd.”

The original approval issued to the owner (Caloundra Central Pty Ltd) on December 18, 2020, for a Material Change of Use of Premises to Establish a Resort Complex remains current.

This approval allows for 125 hotel units, conference facilities, 104 residential units, commercial floorspace, a medical centre and food and drink outlets. A Development Permit to Reconfigure a Lot was also issued at the same time.

Further details of the application can be viewed on council’s Development.i website (application reference: MCU19/0304.01).

Brady Sullivan, Caloundra Chamber of Commerce CEO.

Mr Sullivan said he understood the current owners had taken the land to the market and “the owners would love to see a high-quality residential and hotel development delivered on this potential transformational site”.

“By taking the site to market, the owners can now breathe new life into the development and move towards their vision of a development that provides high amenity and value to the community,” he said.

“The Caloundra Chamber understands that a consolidated site such as this can be transformational for Caloundra, delivering high-quality tourism, housing and experience offerings such as restaurants for the local community and our visitors.

“With a growing population and the upcoming 2032 Games, we need to move forward and plan for the future and this site is an opportunity to deliver that. This site has the potential to deliver sustainable development that celebrates our amazing location and breeds opportunity for our community.

“Consolidated sites like this are rare opportunities, so we need to work together as a community to ensure we don’t miss out on delivering a high-quality outcome.”

Mr Sullivan said the worst outcome would occur if the site ended up “underutilised”.

The old Caloundra post office building is located on the development site.

He said the council had identified the need for many more hotels over the next decade on the Coast, leading in to the 2032 Olympics, and the region already needed more medium-density offerings to help ease the housing and workforce crisis.

A business case for the Sunshine Coast Regional Art Gallery to be built in Caloundra was also underway.

“With the support of our local community, Caloundra has the opportunity to leverage a number of currently proposed developments to solidify itself as Queensland’s top tourist towns, create the best browsing street experiences in Southeast Queensland and anchor itself as the cultural and creative hub of the Sunshine Coast,” Mr Sullivan said.

Colliers describes the land as “an outstanding opportunity to purchase one of the Sunshine Coast’s most significant Development Approved Mixed Use development sites”.

Views to the Pumicestone Passage and ocean from the site.

It says features of the property include:

  • Development Approval in place for a mixed-use project including 104 x residential apartments, 125 x hotel rooms, retail, restaurants, food and beverage outlets and medical centre
  • major centre zoning and specified as a ‘Key Site – Destination Centre’ within the Sunshine Coast Planning Scheme
  • about a 40 metre height limit providing Ocean, Pumicestone Passage and Glass House Mountain views
  • key Caloundra location in an elevated position at the top of Bulcock Street with services to the boundary
  • surrounded by walkable amenity including a selection of beaches, shops, cafes, restaurants and entertainment.

The expressions of interest campaign closes on July 20.

Do you have an opinion to share? Submit a Letter to the Editor at Sunshine Coast News via news@sunshinecoastnews.com.au. You must include your name and suburb.

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