Developer pulls plug on Eden's Sapphire hotel, blames council

Mr Palasty blamed approval delays by Bega Valley Shire Council for holding up the development, which was to include a five-star hotel along with residential units, while in the meantime building costs have escalated.

"We will put in a new DA; it will be three towers only with a total of 121 units," he said.

Mr Palasty said 30 units had been sold with "contracts exchanged and the money in real estate trust funds".

But he said he was concerned about some of those who have exchanged after selling their homes and who he claimed were living in rented accommodation waiting for the units to be completed. They were due to be started last year "and probably won't until next year", he said.

The development remains in the balance over the issue of a roundabout at the junction of Chandos and Imlay St. Council believes the roundabout will be needed and has indicated it was happy to consider how it and CAD can provide it.

CAD previously threatened to halt all work on the development in May 2022 complaining of council delays and "misleading conduct" - claims the council "vehemently rejects".

READ MORE: Sapphire of Eden to revitalise town say developers

Mr Palasty said he had offered council $100,000 to investigate the design of the roundabout in return for a construction certificate so work can commence on the site. But it appears agreement cannot be reached.

It is one of three issues for CAD in relation to council currently with the Land and Environment Court.

There is also the matter of the Australasia Hotel, where council issued a stop work notice two weeks ago. The issue related to a slab that has been laid at the rear of the hotel for distilleries.

Mayor Russell Fitzpatrick said there was no DA for the work, but Mr Palasty said it was part of the original DA.

VIDEO: Sneak peek at Hotel Australasia accommodation