Could lower development contributions attract more hotels and motels to the Wollongong CBD? Photo: Wollongong City Council.
A reduction in fees for hotel developers has faced eleventh-hour opposition from Wollongong Greens councillors.
In August of this year Wollongong City Council unanimously resolved to put the draft Wollongong City-Wide Development Contributions Plan out for public comment.
A suite of recommendations in the plan were designed to make the Wollongong CBD more attractive to hotel and motel developers.
These included slashing developer contributions for new hotels and motels from two per cent to one per cent, including for those that are part of larger mixed-use developments.
The draft received just two submissions, one supportive of suggested changes for housing providers and another suggesting potential projects that could be funded by developer contributions.
No submissions opposed the reduction in contributions for hotel and motel developers.
When the draft plan came back to the council chambers with the recommendation it be adopted, however, it was met with pushback.
Greens councillor Kit Docker moved an amendment that the original rate of contributions for hotel and motel developers be retained.
“We absolutely need new hotel developments in Wollongong and I think as council we have taken real, meaningful steps to support that,” he said.
“Halving developer contributions is far too big a cost for the community.
“The council’s own calculations show we would forego millions in revenue that could be spent on infrastructure that makes the city more liveable.
“I don’t think developer contributions at a council level are the real impediments; it’s persistent inflation, construction and labour costs and shortages.”
Labor councillor David Brown hit back.
He said any developer contribution funds were hypothetical if developers couldn’t be attracted to the area.
“This is not foregone money,” he said.
“If the economics of hotels don’t add up, they don’t get built, and we get no contributions.
“We are in a competitive market; why shouldn’t we make Wollongong more attractive than somewhere else?
“The lack of accommodation is a drag on our local economy.”
Independent councillor Ryan Morris said accommodation infrastructure should be prioritised over developer contributions, at least until the city had a better supply.
“We need to get something moving and any incentive we can apply we should apply,” he said.
“We might lose money now, but over the next 10, 20 years it will be recouped by the fact we have it up and running.
“We can put it back up to two per cent in future; it’s up to the accommodation industry to get on board and the people who sit on their hands will miss out.”
Cr Docker’s proposed amendment was defeated, and the plan was adopted with the support of all councillors except for Cr Docker, councillor Jess Whittaker and councillor Deirdre Stuart.
