The community has won its fight to save Killalea State Park from a $35 million development proposal that would have allowed 106 accommodation lodges to be built on the pristine site.
Kiama MP Matt Brown will today announce that plans for the eco-tourism development have been scrapped after an agreement between development group Killalea Coastal Investments Pty Ltd (KCI) and the Killalea State Park Trust was terminated.
Mr Brown was informed of the decision by Minister for Lands Tony Kelly after lobbying the minister not to proceed with the plans.
"There are no plans to reactivate the type of project envisaged by KCI at Killalea," Mr Brown said.
The decision does not guarantee that other development proposals won't be considered in the future, although Mr Brown said no development resembling the KCI proposal would be supported by him or a Labor State Government.
"I don't know what other things will come in the future, though," he said. "It will be up to the Trust what they want."
The Killalea decision comes less than a week after Mr Kelly also announced the protection of Wollongong Harbour, under the State Heritage Register.
The initial Killalea proposal for 202 residential lodges, pools, tennis courts, restaurants and a conference centre was scaled back to 106 accommodation lodges within two development sites.
Both proposals sparked community outrage and the Save Killalea Alliance was formed to fight the plans.
Green bans were also imposed by the South Coast Labour Council.
Mr Brown said the Government's decision was influenced by the impact of the global financial crisis on KCI and the strength of feeling the proposal generated in the community.
"I appreciate there have been a range of views on this - but I want to say that views from both ends of the spectrum have been heard and respected," Mr Brown said.
KCI was initially a joint venture between Babcock & Brown and Mariner Financial, until Mariner assumed full control after the collapse of Babcock & Brown. But Mariner also found themselves in financial trouble and, in March, revealed it had net assets of just $20,000 at the end of 2009.
Mr Brown said the intellectual property associated with the shelved KCI plans would now revert to government ownership to assist in managing the park.
Mr Brown defended Killalea State Park Trust's decision to sign a 52-year lease with KCI in 2007.
"The trust was in a tough position after community opposition to a gate fee and took the view that developing 4 per cent of the park to generate income to look after the other 96 per cent was reasonable," Mr Brown said.
"This is exactly what councils do, and cabins are adjacent to many South Coast beaches, like at Kiama, Werri and Gerroa."
Battle for a beauty spot
DECEMBER 2002: Killalea State Park launches a nationwide search for venture partners to help develop facilities at the park. JULY 2006: Minister for Lands Tony Kelly announces a low-cost loan of $165,000 to enable a contract to be drawn up with one of four private resort operators interested in developing the site. MAY 2007: Mr Kelly signs an agreement to lease three parcels of land to a private developer for 52 years. MARCH 2009: Joint venture partner Babcock & Brown are placed into voluntary administration, creating uncertainty over the proposed development at Killalea. MARCH 2009: NSW Planning Minister Kristina Keneally declares the Killalea State Park development a major project. SEPTEMBER 2009: Plans for a 106-lodge tourist development at Killalea State Park are released to the public. MARCH 2010: Mariner Corporation, formerly Mariner Financial, tells the Australian Stock Exchange its net assets at December 31 stood at $20,000. MAY 2010: Kiama MP Matt Brown announces that the plans for 106 accommodation units have been scrapped.
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