The rare blemish on the face of Queensland’s Top Tourist Town may soon disappear, with the imminent sale of one of the Sunshine Coast’s most controversial development sites.
The $250m ‘world-class’ Paloma Paloma hotel and apartments development was touted as “unlike anything before on the Sunshine Coast” when the project was unveiled in April 2022.
The “unrivalled collection” of 74 private two- and three-bedroom apartments – providing a selection of Pacific Ocean, Pumicestone Passage and Glass House Mountains views – was expected to range in price initially from the high $800,000s for a two-bedroom unit to $3m-$5m for the four penthouses.
Paloma Paloma’s 5289sqm site was set to completely transform the top of town at 1-9 Bulcock Street and 45-47 Bombala Terrace, taking two-and-a-half years to complete.
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The original Sunshine Coast Council 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 council spokesperson told Sunshine Coast News in June 2023 that 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 project seemed to polarise the community from the start when the then unnamed developer coated the row of shops in the old Frizzo’s Building and now-demolished former post office on the corner of Bulcock Street and Canberra Terrace in ‘pink fire’ (but more like a flamboyant orange) as a marketing tactic in late 2021.
Residents’ anger dissipated somewhat after hearing they would only have to begrudgingly tolerate the paint job until August 2022, when demolition and construction of the project would start.
But deadlines came and went.
Not a sod was turned and, in March 2023, 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.
Colliers conducted an expressions of interest (EOI) campaign seeking a new developer for the proposal and citing “significant development opportunity within one of the most in-demand and supply-constrained markets in Queensland and Australia”.
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The campaign closed on July 20, 2023, without an immediate successful contract being signed.
But now a sale is in sight, though any future development may take a whole new form and require fresh council approvals.
Baydn Dodds, who oversees the Special Projects division for Colliers International on the Sunshine Coast, said “terms had been agreed to sell the site to an experienced developer”, and contract conditions were being worked through.
“Due to the conditional nature of the contract, we are unable to disclose the sale price,” he said.
“Inquiry came from a broad range of developers, mainly Queensland and national based. However, we did receive offers from groups with international backing.
“The majority of market feedback received during the EOI campaign has indicated that delivering the current approval is unviable, largely due to the significant construction cost escalations experienced over the past 18 months.
“At this point in time, we are unable to provide any indication of the potential buyer’s future plans for the site.”
It’s business as usual, in the meantime, for the two remaining tenants in the Frizzo Building: Bad Hair Day barber and Crazy Horse Studios artist Steven Bordonaro.
Mr Bordonaro, whose studio is in the Knox Avenue corner shop next to the barber, said he was “loving the space”.
“(The lease) is ongoing, so I may be in there for quite a while yet, which would be great,” he said.
Mr Bordonaro said he was keen to see a similar project to Paloma Paloma progress one day.
“It would be so good for Caloundra and the top of the Main Street,” he said.
Caloundra Chamber of Commerce CEO Brady Sullivan told Sunshine Coast News after the expressions of interest were called that the sizeable, prime development block offered Sunshine Coast Council a rare opportunity to create an architecturally pleasing, sustainable and outstanding community asset in partnership with a new developer in the key beachside location.
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