After years of uncertainty and community discussion, a prominent coastal parcel in Scarborough is poised for transformation into a hotel. The City of Stirling is advancing a proposal to lease the site to a private developer, marking a significant step in the area's evolution.
Council Recommends Lease Agreement with Local Developer
City administration has put forward a recommendation for councillors to approve a long-term ground lease with Western Australia-based Lofte Property. This follows an expression of interest process for the 2,984 square metre property located at 273 West Coast Highway. The site, often referred to as a dust bowl due to its prolonged vacancy, is set to be revitalised.
The proposed lease is expected to commence at an annual rate of $370,000. This arrangement would provide the city with a steady financial return while facilitating private investment in the precinct.
Prime Location and Development Potential
Strategically positioned on the beach side of West Coast Highway, just south of Brighton Road, the land boasts considerable development appeal. Its zoning permits buildings of eight to twelve storeys, and its proximity to the Scarborough Beach foreshore enhances its attractiveness.
The City of Stirling has identified this property as one of its top-ten sites for investment and development. This classification underscores the council's confidence in the location's potential to contribute to the local economy and urban landscape.
Economic and Tourism Benefits Anticipated
City officers believe that the construction of a high-quality hotel will significantly elevate Scarborough's profile as a premium beachside destination. The project is projected to deliver substantial economic and tourism advantages to the broader community.
In a detailed report, officers outlined the expected impacts:
- Direct Economic Stimulus: A $72 million non-residential project is forecast to create 195 full-time jobs during the construction phase.
- Ongoing Benefits: An additional $63.6 million in supply chain and consumption effects is anticipated, bolstering the local visitor economy.
The development is seen as a complementary addition to the foreshore redevelopment efforts. It is expected to strengthen the local economy and potentially act as a catalyst for further private investment in the area.
Financial Returns and Community Considerations
Over a 50-year period, the proposed $370,000 annual lease, prior to any rent review adjustments, would generate approximately $18.5 million for the City of Stirling. Additional rates revenue from the completed development would further contribute to municipal finances.
For several years, some residents had advocated for the site to be converted into a temporary carpark to address local parking concerns. However, in February 2024, the council formally rejected these proposals. The decision was based on assessments that such a project would be too costly and unlikely to resolve the broader parking issues effectively.
Instead, the council's strategy has focused on securing a long-term lease for development, with the current hotel proposal representing the fulfilment of that plan.
Next Steps in the Approval Process
The officers' recommendation report will be presented for discussion at the City of Stirling's planning and development committee meeting scheduled for Tuesday night. Following this committee review, councillors are expected to formally vote on the matter at their next ordinary council meeting on February 10.
This procedural pathway will determine whether the lease agreement proceeds, potentially unlocking a new chapter for the Scarborough waterfront and its community.
