Chinese-backed group of investors ASF Consortium may take legal action against the government of Queensland after its project for a A$3-billion casino resort in Gold Coast was nixed in August by Premier Annastacia Palaszczuk’s administration.
The investor group said on Monday that it suffered loss of A$12.1 million due to the ambitious project’s cancellation. ASF Consortium is currently discussing the matter with the Queensland government and is hoping to find an adequate and timely solution. However, if the parties fail to reach one, the group of investors would take the issue to court, seeking to be reimbursed for its loss.
A Project Surrounded by Controversy
In 2014, ASF Consortium was selected as the preferred developer of an integrated resort in the Gold Coast region. The move was part of a larger scheme for the expansion of the state’s casino and tourism industries through the construction of several multi-purpose complexes that have become particularly popular in the Asia-Pacific region.
An original plan presented by ASF Consortium involved the establishment of such complex on the artificial Wavebreak Island. The proposal faced staunch opposition from environmental groups, particularly due to the fact that it also included the construction of a cruise ship terminal.
A second plan emerged shortly after. Under it, ASF Consortium would have built its integrated resort on a five-hectare site on what is known as Southport Spit. The complex would have included five towers with different accommodation, entertainment, retail, and conference and meeting facilities. That second plan was scrapped by the Queensland government in August. The project’s cancellation occurred several months after a public consultation on its implementation was held.
Although no other candidate for the construction of a casino resort has been selected by the state government, it is still unclear whether such resort will eventually be built anywhere in the Gold Coast region.
Shortly after news about the rejection of ASF Consortium’s second plan emerged, Gold Coast Mayor Tom Tate presented a separate plan for an integrated resort in a Southport section which is occupied by the Southport Bowls and Tennis Clubs as well as by park space. The plan was sent to Premier Palaszczuk and it is now up to the state’s top official and her administration to decide whether it would be given the green light to be implemented.
Residents of the area where the casino resort could be built voiced discontent with the fact that the above-mentioned facilities would either be relocated or closed for good, if Mayor Tate’s plan was given the green light.
Gold Coast currently has one operational casino – The Star Gold Coast, formerly known as Jupiters Casino Gold Coast. The property is undergoing a A$1-billion renovation and expansion that would see the construction of additional accommodation and entertainment facilities, among other things.
