Killalea
developer runs out of money
By
ALEX ARNOLD
PLANS
for a $35 million tourist development within Killalea State Park should be
scrapped in light of the financial position of the company behind the project,
according to the Save Killalea Alliance.
In
an announcement to the stock exchange, Mariner Corporation - formerly Mariner
Financial - said its net assets at December 31 stood at $20,000 and the company
had scaled back its full-time staff from 70 to two.
In
relation to Killalea Coastal Investments (KCI), Mariner said it was
"assessing its options in relation to the asset".
Six
months ago Mariner announced it had "verbally agreed" to sell KCI to a
third party, however questions were raised over the company's ability to on-sell
a "lease agreement".
At
the time Killalea State Park Trust chair Ed Gilmore said there was nothing to
stop Mariner selling up to 49 per cent of KCI, but Mariner needed to remain
principal shareholder.
"There
is nothing I can say about Killalea at this stage," Mariner managing
director Bill Ireland said yesterday.
Mr
Ireland said most staff were now contractors employed only when needed.
Mariner
took full control of KCI after the collapse of its joint venture partner Babcock
& Brown.
In
November last year the trust granted Mariner an extension to January 2011 to
allow the company to get its controversial resort application approved, but the
sunset date for a start to construction remains March 31, 2011.
The
development was declared a major project by then Planning Minister Kristina
Keneally in March last year.
In total, 81 of the proposed 106 lodges are in the area overlooking The
Farm surfing reserve.
Conference
facilities and 311 car parking spaces are also proposed.
Save
Killalea Alliance spokeswoman Mairi Petersen said the group had resolved to
write to Tony Kelly to "please call the whole deal off".
The
alliance will also write to Ms Keneally, now Premier, who was familiar with the
project from her time as planning minister.
Illawarra Mercury – 4 March 2010
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