A long-awaited hotel development at Kalgoorlie Golf Course — home to the WA PGA Championship for the past decade — has "stalled" despite $10 million in ratepayers' money being committed for early works.
The 122-room resort, to be operated by American hotel chain DoubleTree by Hilton, was announced by the City of Kalgoorlie-Boulder in September 2017.
But more than six years later, construction on a site overlooking the 18th hole has been plagued by ongoing delays.
Mayor Glenn Wilson told reporters at this week's council meeting the city had completed earthworks and connected water and power services as part of its $10 million commitment to the project.
Council documents showed $529,875 was spent on the resort development last financial year, and a further $62,094 was spent in the September quarter.
The work included the installation of about 500 pilings into bedrock so the resort would not sink into the old landfill site the golf course was built on.
But the state of the embattled WA construction industry has cast serious doubt over the project once again.
Hotel project 'off track'
A quarterly report on the city's major projects tabled at this week's council meeting described the resort project as "on hold" and "off track".
"[The] project remains on hold while council confirms a position in relation to the draft deed of assignment and variation," the report stated.
Mr Wilson also revealed there had been minimal contact with Perth-based developers Collab Capital since November.
"There is a contract in place and council are reviewing all options with the developers," Mr Wilson said on Monday night.
Then on Tuesday afternoon, the City of Kalgoorlie-Boulder and Collab Capital released a joint statement reaffirming their commitment to the project.
"Both the City of Kalgoorlie-Boulder and Collab Capital express their commitment to advancing the project in the best interest of the community," the statement read.
"Both parties continue to collaborate to overcome construction and cost-related challenges that have temporarily stalled the development.
"The city and Collab Capital are eager to commence the project before the end of the year providing solutions are found to the challenges faced."
Developer promotes tourism benefits
One of the challenges appeared to be solved in June last year, when city councillors granted permission for the developer to park up to 40 caravans at the golf course to house its construction workers.
The caravans would be allowed to occupy the site for up to 18 months, while the plan would see the existing clubhouse bar and bistro open seven days a week to cater for the workers.
Collab Capital's finance and commercial director Ashley Kerfoot was quoted in Tuesday's joint statement.
He pointed to the opening of the Busselton Hilton on December 29 as an example of a recent project the company had completed.
Mayor Glenn Wilson was also quoted, saying there had been "prolonged anticipation for this development" and that it needed "decisive action".
"Both parties are optimistic about delivering a landmark hotel development that will not only enhance the city's amenities but also contribute to its economic growth," the statement read.