Reef Marina rejects Council's interpretation - Port Douglas Waterfront - Part 3



Reef Marina rejects Council's interpretation of Ministers freehold conditions - Port Douglas Waterfront - Part 3

Published Thursday 11 February 2016

The Reef Marina (TRM) today said it is thrilled with the overwhelming support it has received since announcing their Port Douglas waterfront renewal project. 

RELATED:

  • <link no-one-wins-if-project-derailed.13407.0.html>First in the series - No one wins if project derailed
  • <link councillors-respond-to-latest-update-on.13434.0.html>Second in the series 2.1 - Councillors respond to latest update on Port Doulgas Waterfront
  • <link mayor-and-ceo-respond-to-the-latest-outc.13439.0.html>Second in the series 2.2 - Mayor and CEO respond to update on Port Douglas Waterfront



“We are hoping that Council will assess our application for Preliminary Approval promptly and fairly so that we can move to the next stage of this important project,” said The Reef Marina developer Andrew Hooper-Nguyen.

He said The Reef Marina's vision for a 'Seafood & Fishing Precinct' will be a win-win for Port Douglas, the fishing industry and the marina.

"Locals and visitors alike will savour fresh and cooked seafood on the waterfront; the fishing industry will enjoy higher incomes and have long-term berth security; and the marina will have more trawler customers."

There seems to be general agreement between TRM, Council and the fishermen that the potential relocation of the commercial fishing industry to Lot 96 would be a win-win solution for the viability and sustainability of the commercial fishing industry.

If the commercial fishing industry decide to remain within the existing marina berthing facilities, this would have no impact on the TRM Development Opens external link in new windowApplication, however the commercial viability and sustainability of the fishing industry may be impacted.

“We do not believe that our application for Preliminary Approval, which is assessed against relevant planning law, should be affected by the location of the fishing businesses,” said Mr Hooper-Nguyen.

“Essentially, the marina’s waterfront renewal project should not diminish the viability of the fishing industry.  We’ve consulted extensively with the commercial fishermen to understand their needs and have offered them three different locations so that they can choose which one works best.”

If the fishermen were to utilise the northern side of the Duck Pond, this location could facilitate ‘off the trawler’ seafood sales to the public utilising the Public Plaza. However the conflict that exists is between public access and commercial activities. TRM’s Development Opens external link in new windowApplication states that it is not appropriate for heavy industry to be operating within the Port Douglas tourist centre and certain activities would need to be restricted.

“The key drivers of trawler profitability are the location, quantity and price of fish caught.  Berthing location should have far less impact on the viability of the industry.

“The slipway is antiquated and, like the rest of the marina, it has had little investment over the years.  The slipway’s small size makes it operationally inefficient and it would not comply with modern environmental standards.  It currently operates at a financial loss,” said Hooper-Nguyen.

If the commercial fishing industry chooses to relocate to Lot 96 and partner with TRM in the development of a new ‘Seafood & Fishing Precinct’, TRM stated their commitment to construct the trawler berthing facility is independent of the waterfront renewal project and would also be the catalyst for their phase two expansion.

“The Reef Marina is prepared to construct the proposed trawler berthing facility as soon as commercial arrangements are finalised and any necessary approvals are obtained.  This commitment is independent of our waterfront renewal project.

“Given the substantial cost of building marinas, especially mobilisation of equipment, it would be sensible for us to construct our phase two expansion at the same time as the trawler berthing facility.  Our phase two expansion, a multi-million dollar investment by the marina, would create an additional 25 berths and entice further visitors to Port Douglas,” he said.

Supposing Lot 96 is purchased by Council for the proposed ‘Seafood & Fishing Precinct’, Council said it would also continue negotiations with TRM to relinquish a portion of its lease at Lot 146 to locate the fishing berths and to provide secure water access to Lot 96 for the commercial fishing industry. Failing this, Council would seek recommendation for the compulsory acquisition of that required area.

The Reef Marina's understanding is that Council proposes that they construct the trawler berthing facility and then give it, and the surrounding marina basin, to Council at no cost. 

Despite the fishing industry, the marina and the Council now broadly working towards a common vision of a ‘Seafood & Fishing Precinct’, TRM said that differences remain on who should own the trawler berthing facility and what is the best way to give trawler businesses long-term berth security.

“The Reef Marina proposes to build and operate the trawler berthing facility and to recover the construction cost over time by leasing the facility, or individual berths, to the fishing industry on commercial terms. Long-term berth security can be guaranteed in a number of ways; for example, long-term leases or Council caveating that the berths must always be available in priority for trawlers.  And in practice, the only access to the berths will be from the adjacent land controlled by Council.

“Council agrees that the marina should build and fund the trawler berthing facility, but that we should gift it, and the surrounding part of our marina basin, to the Council and, or, the fishing industry.  And if we don’t, they will take it by legal force, using ratepayers’ money to compulsorily acquire our marina basin.

“We do not believe that this is fair or reasonable.  It is not the Council’s role to compel one business to transfer a considerable part of its assets to other businesses (trawler operators). 

“The Councillors’ heavy-handed approach will further damage business confidence in the Shire and jeopardises our common vision for a commercially viable and privately funded ‘Seafood & Fishing Precinct’,” said Hooper-Nguyen.

As to why Council would propose that TRM agree to this is based on Council’s interpretation, according to Hooper-Nguyen.

“Essentially, our freeholding conditions require that the waterfront renewal project must not jeopardise the viability of the fishing industry. Council has interpreted this obligation so as to require The Reef Marina to build new trawler berthing facilities and to gift such facilities to the Council and, or, the fishing industry.  We reject this interpretation,” he said.

While the Council’s Draft Planning Scheme is currently with the State Government for the State Interest Check, it is believed progress of the Preliminary Approval of the TRM Development Opens external link in new windowApplication should not be affected.

“As our application for Preliminary Approval was submitted under the current Planning Scheme, it will be assessed against the current Planning Scheme irrespective of future changes,” he said.