Shire of Augusta-Margaret River council surprise Fini Group hotel developers with steep parking costs

The future of “Australia’s first net-positive circular hotel” is in serious jeopardy after a decision last week by the Shire of Augusta-Margaret River. Developers the Fini Group tried their luck for a second shot at council approval and perhaps banked on elected members waiving cash compensation for a 17-bay shortfall at the proposed Fearn Avenue project. Instead, a majority of the five members at last Wednesday’s meeting in Augusta ruled it would be unfair to reduce the agreed cash-in-lieu rate, insisting more than $400,000 be paid to the shire for the project to proceed. That decision could likely sink Fini’s hotel ambitions, which the developers have previously said was running on thin margins that relied upon consideration for parking issues. The project aimed to redevelop six rammed earth apartments into a 32-room multi-level hybrid hotel with a bar and function space abutting the street across from the Fearn Avenue festival precinct. In 2023, shire planners recommended against the project because mandated parking requirements in the town centre could not be met. The council later dismissed that recommendation in its report to State Government adjudicators, but nearby business operators who paid cash in lieu or leases on private carparks to meet requirements then complained Fini had received unfair consideration in relying on parking it had not developed itself. The project subsequently went before the Regional Development Assessment Panel as well as the State Administrative Tribunal, but the previous council decision was seen as the most favourable to its chances. The developers, represented last week by creative director Alessio Fini, said the project was not the standard hotel offering, nor would it attract the same car-heavy clientele. Mr Fini said the project was “a positive contribution to this town” and embodied the region’s sustainability values. But under questioning from Cr Melissa D’ath, a previous Margaret River Chamber of Commerce president, Mr Fini conceded no further formal discussions had occurred with businesses previously irked at the Fini waiver. Cr D’ath said the developers had had 18 months to come back with a new arrangement. During debate on the item, Cr David Binks failed to win support from colleagues to reduce the cash-in-lieu amount to $5709 for each of the 17 bays. Cr Binks said it was “unreasonable” to charge the full price for parking the shire could not deliver. While others also spoke in support of the project, members stuck to their guns on the cash-in-lieu demands. “I hope they continue going forward with this … but it has to be equitable,” Cr D’ath said. A council report said the cost for design, construction and land for those missing bays — if provided elsewhere in the CBD — was normally $24,817 per bay, totalling about $421,000 for the Fearn Avenue project.