THE State Government is close to accepting a bid from Pac Asia Holdings to take over the development rights to the stalled Port Kennedy tourism resort project.Government sources say the due diligence on the Pac Asia bid is almost complete and an announcement is likely within a fortnight.Pac Asia will take over the rights from Perth-based company Port Kennedy Resorts Pty Ltd, which received State Government appro-val in 1992 to develop the Crown land into a major recreation and tourism facility.In November last year, PKR called in administrator Hall Chadwick, which has since indi-cated its preferred option is to sell the development rights to Pac Asia.Pac Asia is PKR’s biggest creditor and is believed to be owed more than $16 million. The Singapore-based company hopes to recoup the loss through the development of a successful resort project.Details of the Pac Asia bid are not available but Freehills partner Konrad de Kerloy, acting for Pac Asia, said the bid was submitted to the Government on the basis that there would be changes to the original project plan, but only after extensive community consultation.The scope and detail of the project is set out in the Port Kennedy Development Agreement Act.“Some parts will be changed but community consultation will be a vital element of that,” Mr de Kerloy said.“As it currently stands, the project is not viable. The requirements of the Act were so onerous that nobody could make any money out of it.“The question is to what extent can the Act be revised so it meets its overall objective but gives the developers some upside.”Under the Act, PKR was required to build hotel and short-stay accommodation for up to 3,500 holidaymakers, a marina, a tourism town centre and public infrastructure.Mr de Kerloy has already signalled Pac Asia will not build the marina
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