In April 2007, the Killalea State Park Trust signed a 52-year lease agreement with Killalea Coastal Investments, a joint venture between Mariner Financial and Babcock & Brown.

The initial concept was to build 202 strata-owned units, a conference centre, tennis courts, swimming pools and restaurants.

In March this year, NSW Planning Minister Kristina Keneally said that a modified application comprising 106 accommodation lodges and amenities would be assessed as a major project.

On the same day the decision was gazetted, Babcock & Brown was placed in external administration, with Mariner declaring its intention to take over the KCI venture.

Trading in Mariner's shares was last month suspended after the resignation of two directors. Mariner's Ecopoint Management, the company that was to manage the Killalea resort, was also placed in external administration.

Save Killalea Alliance spokeswoman Mairi Petersen said it was time for Minister for Lands Tony Kelly to put developers and the community out of their misery and terminate the development agreement.

South Coast Labour Council secretary Arthur Rorris said there were green bans on the site for a reason.

"State parks are to be enjoyed by people and not used as collateral for Wall Street's junketeers," Mr Rorris said.

Both groups expressed concern about what would happen to the lease if Mariner collapsed.

Killalea State Park Trust chair Ed Gilmore said the trust would remain in charge of the contract if Mariner was to collapse, but that at this stage the project would proceed.

"Mariner keep telling us everything is on track ... hopefully they will survive the global financial crisis," Mr Gilmore said.

He said it was not an option for the park to "do nothing" and the ball remained in Mariner's court as they sought approval through the Department of Planning.

A department spokesman said it was awaiting more information from the proponent, including a detailed description of the proposal, before preparing the Director-General's Requirements.

The alliance and labour council will hold a public meeting at 6.30pm next Tuesday at the Shellharbour Golf Club.