CEO of Club Sapphire Damien Foley has said the club's site for the proposed seven storey hotel and conferencing facility is the only one in Merimbula.
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"If we want a conference facility, this is the only site. This is our chance to reduce our reliance on pokies, that's what this is about for us," Mr Foley told ACM.
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He said because the site was on a ridge, it offered minimal disruption to the town while providing the views necessary for a 4.5 star hotel.
The proposal to increase the maximum height on the site from 16 metres to 26 metres over one corner of the club's site, has been sent to the state government after Bega Valley Shire councillors resolved to send it for gateway approval.
If it is approved it will go on public exhibition for comment, then the DA for the building would have to go on exhibition and the membership of Club Sapphire would also need to give approval.
Mr Foley said it was about the visitor economy and it provided a win for everyone.
"I appreciate we're asking for a significant change but it is site specific," he said.
"There is a need for us to find something to smooth the peaks and troughs of our seasonal business and this is a high-yield market."
If we want a conference facility, this is the only site. This is our chance to reduce our reliance on pokies.
- Damien Foley
Mr Foley said four of Australia's major hotel groups had shown "significant interest" in coming to Merimbula but they needed a certain number of beds and needed to be able to charge 4.5 star rates to make it work. The hotel will be located on top of the existing bistro area.
"The plan is for the club to build the property and then the hotel group would lease it or we would work on a profit sharing arrangement.
"They're all very keen on not having to provide gyms, bars or restaurants, which we have already; they don't have to operate those hospitality businesses and this is the proposal that can make it happen," Mr Foley said.
The club has been working on the proposal for several years. Mr Foley said if approved he couldn't see it being open until five to 10 years' time.
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