Star wins fast-track deal for Gold Coast casino revamp

The gaming giant last month threw down the gauntlet to the Palaszczuk government, demanding exclusivity on the Gold Coast as it sought to head off the threat of a rival casino operator entering the market via the Queensland government’s long-running integrated resort process.

But on Thursday Queensland tourism industry development minister Kate Jones announced the government would begin direct negotiations with The Star to fast track new tourism infrastructure on the Gold Coast.

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Jones says The Star has been issued terms for negotiation with the government for the delivery of its master plan for the Gold Coast and to fast-track new tourism infrastructure.

“Our government has always said we want to work with the private sector to deliver more investment and more jobs for the Gold Coast,” she says. “By having a contract with the Star, we can guarantee that tourism infrastructure that is promised will be delivered.”

Exclusivity question

The government did not disclose whether the casino would receive the exclusivity it had demanded for pouring capital into the area. But it released a consultation report calling for new hotels, attractions and convention space to entice more tourists to the Gold Coast.

Gold Coast Tourism Advisory Panel chair John Witheriff says the Gold Coast needs new tourism investment to ensure the city keeps up with demand.

“If the Gold Coast is to compete with the likes of Sydney, Melbourne, Brisbane and even Cairns in years to come, private sector investment in tourism infrastructure like this will be very important,” he says.

Jones says the panel found a majority on the Gold Coast was supportive of, or had no concerns about a new casino provided it was delivered as part of an integrated resort.

“However, there was strong feedback that Gold Coasters were not supportive of a new casino being built on public land,” she says. “Locals expect that another operator would have to acquire their own site.”

International companies have circled the opportunity to develop on the Gold Coast but none have provided solid commitments and many sought access to public land.

While the gaming giant is advancing on the Gold Coast an independent planning commission in NSW knocked back the planned Ritz-Carlton tower above its Sydney property.

$2bn plan

At last month’s annual meeting Star chairman John O’Neill called for the Queensland government to give certainty for the company to spark a major three-part development on the Gold Coast.

The Star offered to lock in to its $2 billion-plus Star Gold Coast masterplan, provide a $100 million worth of upgrades and expansions to the Gold Coast Convention and Exhibition Centre, and to revamp the Sheraton Grand Mirage.

The Star said its growth strategy was supported by its alliance with its Hong Kong-based joint venture partners, Chow Tai Fook and Far East Consortium, who backed its $3.6bn Queen’s Wharf Brisbane precinct.

O’Neill had criticised the Palaszczuk government at the meeting, for continuing to “speculate” about a second casino on the Gold Coast after seven years of “distraction” that had weighed on its share price.

The Star’s position was that the Gold Coast market was too small for two casinos, warning that bringing a new player in could force it defend its market share rather than focusing on tourism.

Transformation plan

The planned five-tower masterplan for The Star Gold Coast would transform the area.

The first tower — including a Dorsett hotel — is underway and The Star is undertaking apartment pre-sales for a second tower that will also house another renowned hotel.

The Star revealed a fifth tower would be another five-star hotel and sport a “Sky Park” tourism playground and a bevy of retail outlets, infinity pools, gyms, and a world-class day spa, alongside an outdoor function centre.

The casino company is also proposing to upgrade and run the state-owned conference centre, supported by a portion of gaming tax revenues from its Gold Coast operations.

The Sheraton Grand Mirage beachfront resort would be upgraded and The Star would seek to develop a resort on a site adjoining the famed hotel. But all these commitments were contingent on it winning exclusivity arrangements.

But the company is now working through the knockback in NSW over its controversial 237m-tall tower proposal at The Star Sydney.

Sources have said it could appeal to the Land and Environment Court or await the new master plan for the area that will be in place next year and then resubmit a tower proposal.

This article originally appeared on www.theaustralian.com.au/property.