DELAYS in building a nursing home in Glenorchy have been linked to political intrigue surrounding the developer.

The not-for-profit group OneCare has asked the State Government for more time to finish stage one of the Barossa Park residential development.

Independent MLC and former Glenorchy councillor Terry Martin has questioned why OneCare could not stick to a deal when it bought the land to have part of the project completed by September 1.

Mr Martin has also asked Human Services Minister Lin Thorp about what he called "political intrigue" surrounding the group's board.

He said 400 applications for membership to OneCare had been rejected with no sound reasons, other than allegations of membership stacking.

He said building delays were disappointing given former premier Paul Lennon hyped it up as a major agreement and a solution to accommodation affordability.

"It's just sitting there empty," Mr Martin said.

The 6ha site, formerly the Tolosa St Hydro depot, was sold by the Government to OneCare in 2006 for $2 million.

OneCare chairman and Hobart alderman Jeff Briscoe said the $80 million, 128-bed facility would include dementia care, nursing home beds and a community centre.

"With a project of this size, you expect delays," he said.

He denied there was a problem financing the development and that it was secured with the ANZ bank last year.

He said installing infrastructure including flood mitigation had held the project up.

"We're hoping to have all residents in the facility by December 2010," Mr Briscoe said.

He said the 400 applications for membership appeared to be a case of member stacking and there were new policies to ensure it did not happen again.

"It was a clear attempt to influence the board," he said.

Glenorchy Mayor Adriana Taylor said she was surprised when her application was knocked back as she wanted to join so she could contribute to the development and get more information on its progress.

"My application was certainly not to stack," she said.

Ms Thorp said it was not the Government's role to be involved in board governance.

"It would be completely inappropriate other than if [there was] concern about whether projects we care about and are involved in are at risk of not coming about," she told the Legislative Council.

Source: The Mercury - Maria Rae