ASX-listed Eureka Group Holdings has hit a snag in its bid to convert a Queensland motor inn into a rental village, with further wrangling to come over development fees.
The Port Denison Motor Inn (pictured) in Bowen is at the centre of Eureka’s plan, having been originally built for long-term seniors living before being converted into short-term accommodation during a mining boom.
Eureka requested Whitsunday Regional Council waive more than $500,000 in fees including infrastructure charges, increases in rates, and development application fees, so it could purchase the site and convert it back to retirement living in line with its business model of providing rental accommodation for low-income seniors.
However, Council deferred the request, sending the provider back to the negotiating table and saying any profits made by the facility would “go out of town”, adding that $86,000 in headworks contributions did not seem to have been paid in 2001 when the complex was initially given the thumbs up as a retirement living site.
Bowen currently only has one rental retirement village, according to Eureka, which has “comparatively high” pricing as well as a waiting list; in a letter to Council, the provider said the project was “only viable without council-imposed fees, charges and rate increases”.
Port Denison Motor Inn currently has 46 rooms, each with its own kitchen, lounge, and dining facilities.
