DECISION NO. CABINET MINUTE ')~ oo G , // I ~ / 19 //

SUBJECT:---O~n~e~e~n~s~J~a~n~d.__.T~ow11~r~i~s~t_..a~nwd~T~r~a~v~e~l--..i..C~o~r~p~o~r~a~t~j~o~ni.__::-:...______~ Pro pose d Resort De velopme nt - Flore nce Bay -

------r------(Submission No. C,c f1 / 6 )

Jo Coples Received at //-do a.m. r 1 #- 11e fr ~ Copies Made c v CIRCULATION DETAILS

GOVERNOR . Decision F ile 1 21

2 MR. AHERN /, 0 22 ,,,,,,.,.-,- -- 3 23 c MR. GUNN /~ ~I il-, 'Ii ,c.;.· , h

4 24 ~ MR. GIBBS )ubmission ~tt:'.l 5 MR. GLASSOI 25 lmi5!1(._...1 f ./~ "'.. 6 MR. AUSTIN 26 e~ c~ -r- 'd._ - MR. LESTER 7 27 _,/c.A-~ MR. TENN I 8 28 - 9 MR. HARPER 29 10 MR. MUNTZ 1 30 11 31 MR. MCKECHI UE

12 MR. KATTER 32

13 MR. NEAL 33

14 MR. CLAUSOU 34 MR. BORBID4 15 m 35

16 MR. RANDEL~ 36

17 MR. COOPER 37

18 MR. HARVEY' 38

19 MR. LITTLEl ~ROUD 39 Master Filo 20 40 - \ Copy No. 2 Q

R E S T R I C T E D

C A B I N E T n I N U T E

Brisbane, 11th l\pril, 1988

Decision No. 54006

Submission No. 48716 TITLE ~ Tourist and Travel Corporation - Proposed Resort Development - Florence Bay - rtagnetic Island.

CABINET decide d:-

That consideration of the Submission be deferred to allow further discussions between the Honourable the tlinister for Land Management and the Honourable the Minister for Environment, Conservation and Tourism and subsequent report to Cabinet.

CIRCULATION: Premier's Department and copy to Premier and Treasurer. Parliamentary Counsel. Treasury Department and copy to Minister. Department of Lands and copy to Minister. Department of Environment , Conservation and Tourism and copy to ~1inister. Solicitor-General. All other ~Iinisters for perusal and return.

a/V<:.v< Certified ?rue Copy SECURITY CLASSIFICATION "C"

Submission No.

Copy No. 2 1

F 0 R C A B I N E T

QUEENSLAND TOURIST AND TRAVEL CORPORATION PROPOSED RESORT DEVELOPMENT FLORENCE BAY MAGNETIC ISLAND

1. By Decision No . 37084 of 1st June, 1982, Cabinet decided that the Queensland Tourist and Travel Corporation (QTTC) be authorised to seek development proposals for a number of sites including one at Florence Bay, Magnetic Island .

2. Part of the land included in the Florence Bay development site is Portion 26 on EP 1774 held under Special Lease by the Boy Scouts Association. The land concerned is shown on Figure 1 .

3. By Decision No . 39009 of 22nd November, 1982 , Cabinet approved in principle that the Boy Scouts Association be offered tenure over a site at West Point in exchange for their Special Lease at Florence Bay . It was also approved that

"Payment of the sum of one hundred and fifty thousand dollars ($150 , 000) by the Queensland Tourist and Travel Corporation (be made) to the Scout Association of as a substitution and to provide access, power, water and sewerage to the land ...... which amount of one hundred and fifty thousand dollars ($150,000) be recoupable from the successful joint venturer developer tenderer in respect of the international tourist resort . "

Whilst it is not referred to in the decision, the papers presented to Cabinet include a lette r from the QTTC which makes it clear that the Corporation intended that the land exchange and payment take effect on the Corporation's completing a joint development agreement encompassing the Florence Bay site .

. .. / 2 - 2 -

4. On 17th December, 1987, the Area Commissioner of the Scout Association's Kennedy Area sought the assistance of Mr. T. Burreket, M.L.A., Member for to try to bring the land exchange to finality. In his letter, (Attachment A) the Area Commissioner refers to the protracted delays in trying to reach settlement and remarks: "Despite "understandings" and verbal advices, Kennedy Area has never received any communications or letters being official responses from either the Queensland Tourist and Travel Corporation or the Land Administration Commission. Our files do contain copies of two letters (C and D attached) from the Chairman of the Queensland Tourist and Travel Corporation to the Land Administration Commission. These establish the principles of the agreement as accepted by the Queensland Tourist and Travel Corporation. The lack of proper acknowledgement of our correspondence to Q.T.T.C. is most disturbing." 5. The Area Commissioner sought to obtain a firm commitment from Government as to whether the Association should proceed to develop the Florence Bay site (with assured occupancy of at least ten years and guarantees of assistance if removal were required after that time) or whether the Association should immediately move to West Point. If the latter course was to be preferred, the Association would look to receiving the compensation payment immediately (adjusted for inflation since the settlement figure of $150,000 was determined in 1982). 6. In the period since 1982 the Scouts have held discussions with developer, Mr. Geoff Orpin, concerning the development of the Florence Bay site.

Whilst the discussions have not proceeded to the point where a formal contract has been executed, a number of letters have been exchanged between the Scouts and Mr. Orpin which Mr. Orpin has chosen to interpret as a formal agreement. Certainly, some moneys have been expended by Orpin in preparing a development concept for the site. 7. On 28th Se ptember, 1987, Cabinet a uthorised QTTC t o proceed immediately to call for expressions of interest for the Florence Bay development on land which included the Scout Association lease. The release of invitation documents was announced on 30th November, 1987. Closing date for submissions was 12th January, 1988. . .. / 3 - 3 -

8. In October 1987 , Mr. Orpin and his solicitors , Hopgood and Ganim , wrote to my predecessor advising of Orpin ' s relationship with the Scout Association and seeking to prevent QTTC proceeding with any development which would include the Scout Association ' s lease. A copy of the Solicitor ' s letter forms attachment B. 9. It is noted that the Honourable the Minister for Environment, Conservation and Tourism has recently indicated that QTTC was seeking confirmation from Land Administration Commission that the land at West Point was still available for exchange for the Scout Association's lease at Florence Bay . No difficulties were anticipated . 10. Mr . Orpin has , by letter dated 11th January, 1988, forwarded a copy of his proposal to me for my information. The concept provides for the developer to construct a resort jointly with facilities for the Scout Association (also financed by the developer). The documents include : (a) an outline of the concept (b) a draft agreement (c) a feasibility report (d) specifications for the resort buildings etc. Drawings included are largely of the standard of preliminary sketch plans . It is estimated the document would have cost up to $50 , 000 to prepare . 11. There would appear to be no contractual relationship between the Crown and Orpin for the development of the Florence Bay Scout lease . From the documents available, this would appear to be a matter between Orpin and the Scout Association . 12. Summary The key decisions which relate to this issue are : Cabinet has decided that QTTC be authorised to seek development proposals of a site at Florence Bay (CD 37084 of 1st June, 1982). Cabinet has approved in principle the Boy Scouts Association being offered an exchange site with a monetary adjustment of $150,000 at 1982 prices (CD 39009 of 22nd November, 1982) .

. .. / 4 - 4 -

Cabinet has authorised QTTC to call for expressions of interest for the Florence Bay development (including the Scout Association Lease)(CD 52588 of 28th September, 1987) .

There is no contractual relationship between the Crown and Orpin and between the Scout Association and Orpin .

However, given the length of time that has elapsed since negotiations firs t began with the Scouts , it would appear that t he Association has a legitimate complaint against the QTTC, and that action should be taken immediately to resolve this issue . There is a strong view that the area is ready for a major tourist development , and acquisition of this site by QTTC is an important pre-requisite to any development. RECOMMENDATION

It is recommended that : (a) the Ho n ou rable the Minister for Environment, Conservation and Tourism arrange with QTTC for the land exchange to take place at once, with QTTC compensating the Scouts to the amount of $150,000 adjusted for inflation from November , 1982 (the date of the Cabinet decision approving the exchange in principle); Payment to the Scout Association could be as a lump sum or by instalments ; (b) the transaction between QTTC and the Association proceed whether or not QTTC enters into a development agreement for the Florence Bay site resulting from the current invitation .

M.J. AHERN, PREMIER AND TREASURER.

Brisbane.

Date : 5th April, 1988 ULI:'../i l Y

Ron.sESHOt.

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Magnetic

W~Polnl

PKOl'DSElJ L!XALJTY V N£W ./.£ASE Ff;! SaxJT JS.SU. 6260 0 0

\ \ \ \ \ \ \ \ \ \ ' \ ' \ ' \ ' \ \ \ \ \ .,, \ \ Ci) \ - \ \ c:: \ ::0 \ rn \ A I I. A Area Olllce and Seoul SMp W••l>lde Plaza, Kirwan, Town.viii• Telephone 73 4274 Box 533-4 M.C. 17 September 1987 TOWNSVILLE 4810

THE SCOUT ASSOClA TION OF AUSTRALIA KENNEDY AREA

Mr. T. Burreket M.L.A .• Member for Townsville, 94 Denham Street, TO'fmSVILLK

FLORENCE BAY CAMP SITE

Dear Tony,

!.fer to discussions earlier this year c oncerning the future of the Florence Bay Campsite which is leased by the Kennedy Area of the Scout Association. At those discussions Dick Wharton and I agreed to provide you with some of the background to our current dilemma.

The history of the Scout Association1 s negotiatio ns with the Queensland Tourist and Travel Corporation and the Land Administration Can.mission is well known to those of us who have been involved in the dealings since 1980. The understandings which were finally reached are outlined in the attached lett ers. This Association's requests were presented to the Managing Director of the Queensland Tourist and Travel Corporation in (A) attached on the 18th August, 1982. These are further covered in a letter to the Land Administration Commission on the 10th November, 1982.

Despite "understandingsn and verbal advices, Kennedy Area has never received any communications or letters being official responses from either the Queensland Tourist a~~ Travel Corporation or the Land Administration Canmission. Our files do contain ies of two letters (C and D attached) from the Chairman of the Queensland Tourist and Travel Corporation to the Land Administration Canmission. These establish the principles of the agreement as accepted by the Queensland Tourist and Travel Corporation. The lack of proper acknowledgement of our correspondence to Q.T.T. C. is most disturbing .

It is understood by the Kennedy Area that no legal agreement or contract between this Association and any Queensland Government Authority has been finalised. State Cabinet bas approved, in principle, the provision of land at West Point either as a Reserve or Deed of Grant in Trust in substitution for the surrender of Special Lease No. 31143 , together with the payment of $150,000 by the Queensland Tourist and Travel Corporation to the Scout Association of Australia, by Decision No. 39009 of the 22nd November, 1982.

It is now September, 1987 and the circumstances of Kennedy Area in respect to Florence Bay have deteriorated markedly.

Kennedy Area Executive Committee must seek to provide camping and training areas for the youth members in the ·Townsville District. The population of this region exceeds 100,000 and the expansion of rural residential subdivision and primary production has reduced the number of private properties available close to Townsville for these purposes . 2

--~:e Association holds under lease an area at Bluewater. This is admirably suitable for Leader Training Courses and Pack Holiday Development. However, for Scout, Venturer and Rover develoµ:nent, an adventure camp site preferably adjacent to the ocean and close to Townsville is needed .

The manpower strength of Area and the two Townsville Districts is not over generous. Difficulty has been experienced in managing our Bluewater and Florence Bay properties. It is felt that controversy and indecision over Florence Bay bas destroyed any motivation at Group and District level towards the de~elopment of a first class adventure camping site for Kennedy Area. Such a camp site is needed and Magnetic Island offers this potential close to Townsville .

At this time Kennedy Area does not have the. resources (money or manpower) to undertake any major new camp site development. Under the present circumstances there is no option but to make the best use possible of Florence Bay. With the lack of any : mal agreement with the Queensland Tourist and Travel Corporation or any definite ~~metable for the develoµnent of a tourist resort, it is impossible to encourage members to undertake voluntary work on the improvements at the Bay or fund raising for such work. Consequently these improvements continue to deteriorate and be vandalised. Small Scouting groups are using the lease area for camping, however, )vision of proper water supply and ablutions is essential if hygiene is to be ..__intained at a reasonable level.

The Kennedy Area Executive must, in accepting its obligations, seek to resolve the present impasse and provide our young people with the facility they require.

This it has tried to do through a number of approaches to Government Ministers and Senior Public Servants. Area Executive has endeavoured to put forward for consideration a range of options, aimed at resolving our dilemma with the least possible imposition of the Government and with the best possible public relations results for both the Government and the Association .

_ _ must be acknowledged that the Land Administration Canmission has res ponded positively and with good will to the many approaches the Association has made to this Authority. (The Authority from whom our existing Land Title was received).

~Association must also acknowledge good support from the National Parks and 1--.~ldlife Service, the Police and Magnetic Island and Townsvil le business enterprises in our efforts to secure our present base and prepare plans for the future .

At this date, we are presently awaiting a response to submissions to the Lands Administration Commission. However, informal indications are that a totally negative response can be expected from Q.T.T.C. to our further efforts to rescue something for the youth of this area from a "Political Venture" which went far wrong .

At this time the options for the youth of Townsville are:-

(i) Develop Florence Bay; or (ii) Move immediately to West Point .

Development of Florence Bay

In respect to this option, it should be noted:-

(a) No agreement or timetable for our vacation of Florence Bay has been formalised. 3

·if(b)· Our discussions with Ministers and Government officials indicate that the tourist development will proceed at some future date, but no firm indication has been received. In order to proceed with develoµnent of Florence Bay, the following are essential in order that we can raise funds and carry out work to provide the necessary infrastructure.

(c) A new lease providing:

(1) Tenure for a minimum of 30 years with option for renewal. (2) Agreement to relocate to West Point. (3) Compensation provisions to fund relocation costs.

(d) An understanding with Government Authorities that tourists developments would not commence for a minimum of 10 years.

_2) Preservation of land at West Point for future occupation by the Scout Association.

(f) Assistance from Government Authorities with the supervision of the Bay and control over illegal campers who are using the vacant crown land above high water mark.

It is assuned that with the above formal agreements and lease, a definite goal could be presented to our members and to the general public. This goal, we believe, would be accepted and receive support and would al low p.roper commercial arrangements to be made.

Development of ~est Point

In respect to this option, there is no way any develoµnent at West Point could be ~ontemplated without some formal undertaking being entered into with the Government, iich would provide guaranteed compensation payments for the Florence Bay asset. It is understood that the Cabinet decision of the 22nd November, 1982 provides for the Queensland Tourist and Travel Corporation to make a payment of $150,000, at that date, to the Scout Association and recovering this outlay from the eventual - uccessful developer of Florence Bay. Obviously, due to inflation, the original ~ount of $150,000 would not cover current anticipated costs to establish a camp at West Point in 1988. In fact, $150,000 in 1982 would translate to roughly $200, 000 in today's money.

Conclusion

The Scout Association is a well respected voluntary community organisation dedicated to instilling values such as leadership, community awareness , self reliance, honesty and a Christian outlook - all values which are held in high esteem by our Government.

Our proposals are modest and seek only to provide for the proper training and enjoyment of the youth of Townsville and North Queensland. We have been frustrated at every turn by the bureaucratic indifference of the Q.T.T.C. who have adopted a dog in the manger attitude to this whole issue despite the fact that the Association strongly supported the Government, both privately and in the media, during the formative stages of the proposal by Max Hooper prior to the 1980 election. We have consistently resisted attempts by persons hostile to the Government to use the Association' s difficulties in attacks on the Government and we will continue to do so. 4 ., ... . }--"'- . j.'{ ~ ffbe adoption by the Government of the Savage Report shows its concern over the stifling of initiative through bureaucratic inertia. All we are asking is for this philosophy to be extended to the resolution of this matter in the spirit of the Cabinet decidion and with sensitivity to the needs of the youth of Townsville.

We would be most appreciative of any efforts you could make on our behalf to resolve the matter in a satisfactory manner and would hope that you could take the matter up at the highest level.

Yours faithfully, Gt\~ .lTH MacCARTHY AREA COMMISSIONER ,,.. I i ' . ~ ~' ~\'E1 scnuT ASSOCIATION /.\~~:-.;:_\--.\--.c""\ A

I JF ., .. l_JS IRALIA Ouccnsl:rnd 81 onch A/\O:MDL

AUSTllALIA I EJox 50, Post Office, reply please quote : Florence Oay i .. C:lAOADWA Y, Q. 4000

18tll August, 1982.

M:-. ? . ~: : .1:; Managing Director Queensland Tourist and Travel Corporation 307 Queen Street dRISB/\NE QLD 4000.

Dear Mr. King, l\s you are awure, it llas been proposed to us by representat i ·1es of the Queensland Tourist and Travel Corporation that we should consider surrendering the lease held by The Associatior. over Florence Bay land in order to facilitate a tourist develor:ment in the area. Further, it · has been suggested to us that in an exchange for the surrender of the Florence .Bay land we accept the fol1owing: /

1 .~. f!~ ~nde;t3~!'.l~ th::t the :re'! 0f \'!nrJ \rr0;!)0r,-itinci .. the Manorial Chapel of Beaver Masters become a canetary reserve, in perpetuity.

2. I\ grant to the /\sscx. iation of unconditional estate in fee simple, free of al 1 encumbrances in respect of approximately forty acres of land described as portions 144, 1'15 and part of portion 1134, sllown on sheet 5 of tile Land /\gents map and in addition · estate in fee simple of a small portion of Vacant Crown Land adjacent to West Point. Ac tua I 1and areas in respect of port ion 184 and the land adjacent to West Point would be identified by a work party consisting of Lands Administration CoITTTiission officers and Scouting personnel represent­ ing the Kennedy ArPa Executive. 3. Monetary compensation to be paid in seven (7) annual instalnents of $50,000 dollar·s per unnum, tlie first instalment to be duE and payable on tile signing of an agremient with a Developer and eacl1 of the six subsequen t annual in sta lment s to be adjusted according to t.l1e Consumer Price Jndex in order to offset the effect of inflationury a ct ion.

The Assoc iation is most anxious lo be of assistance and thus seeks definite proposals in writing, in order that it may give full and'1 prompt cons ideration to this mo st important aspect of Queensland s deve 1opmen L. I await your advice and rrniain,

' . '\ .. ., ... - . . . . , .

• r ANH~ XlJ R£ ' THE\~COUT ASSOCIATION

OF AUSTRALIA 0.-aod Bloncil ,...... _ r@l l AUS ff\ALIA J k1 reply~ quole: AAU : HC: F'LOHl::NCI:: llAY LEASE Box 50, Poat OHi~. l:lAOAOWA Y, Q . .C.000

Novemoor 10, 19

W.J. Uaker:-. Esq., Member, Land Adm1n1stration Commission, P.O. !:lox lb8, NORTll QUAY. OLD. 4000.

I refer to diecutt61ons with you and rl!preaentat1ves of , the Queen:;l. Tourist a11d Travel Corporation concerninc;i th1.11 A..asocia,t1on'a prope . at flort1nce !:lay.

l hove been instructed by my E.:xecutive to confirm to you that the Scout A:>sociatlon of Autltral1a (Qut:Jt:Jnaland Branch) will be prepare• to surrender its ex1titin~ Spocial LeatJe No. 3114) over its land at floNln Ct:! !:lay subject to arid conditional upon tho followinc;i:-

1. E.:xiatinQ authority beinQ Qranted to the iaaue_.. of a Special Lea•e pur.wuant to Section 20J(a) o! the ~nd Act in reapect of the land• colour.,d Qr•en on the plan annexed hereto, for a period of flfty (50) year• at a.n &.nnual rental of $30.00 per annum, •Uch land• .to have immediate beach frontaQe •ubjoct only to th• requir-9a...nt• of the Beach Protaction Authority. The leaQO is to contain a provi•ion that upon pdyrntJnt of tho sum of $1.00, freehold title to the subject landa will i••ue to this Allsociation.

2. Payrrent by the Queen~land Tourist and Travel Corporation of the sum of $150,000.00 to this A~sociat1on on surrender of the exi•t1no Special Lease, to assist in the proviaion of essential aerv1cea to tha subject pro~rty.

I unLiersta.nd that you w1 ll be preparing a. uubmiQaion to Cabinet, •nd await the outcome at that ttubmiaa1on.

, 'x'ou r 11 falthfully,

A.A. DRODIE G;JH:1w, S l;CRETMY I Jrh AUSTR.t\Ll.t\N JAM80REE COLLINGWOOD PARK I PS WI CH. 29th DlCl:MbER. 1982 -- 71h J.t\NUARY, I Y8J ------·----·-- .. '

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NltH:XVlU: "O" r nr PT OF LANDS~ -- . I 7~C33 -01iCJVdi --· ·-:-:- f'-:-.--·--·-:- Thc Quccm~nd T uur111 i.. TrHd G.i~~'l°~ ~ ;.._ ;J [, O.P.0 . a,... Ila, s,..o,., .. , i

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W.J. Buer, Elkj., L.u1d M..uniac.r.o.t1on Comru.La~HJll, Land A<.J.m.in1 .. t1•tlon Bulldln..NE. 4000. / '--'> r s J,L , I' .u-:: tLOfU.lKC MY - SCOlrr i'-5:.;ucl..ATlON or AUSTR.A.Ll.A {QUli:I:NS r..a..tm BRANCH]

~ · urt.her t.o our 1 .. c.ter or' even dAtu, I f••l tJ1at g,()(IWI axplan.ation .. 1111iat in roapec t ot our "CJrotw\<.111t to recoup (roa ou.r ulti.a&te oint v..ntu.r• d•veloi.-nt. tl1• aum of 51SO,OOO.

ln our -rl isr n~oti.;ac.Jon• w1 tJ . tho Scout A11aoc1&tlon, - envi ll4>CJ~ t.h&t they would .-.in on • ~ller &r...._, b.~ th• t.ot.&l y of 6.i;>ecl&l i.-... JlH).

~ &./\ otl ... t to &. very 'iiubat&.nti&.l r.ductlon in the ar ol tJ111 l~ae l &lr .. dy h.a1J, .it w..oa point..:l Oltt t.tut th• Ulen reduce h..sve 11coeaa, power, water, teleµLono anc! aewerAqe to the a1ta lW ua4d tor youth 1 ... d.araJ)ip tr.d.rd. .ng r&t1H1r Uun camping.

Aw our pl.o.na for the a1t11 developed, the land originally anv1fl.eat l.o.nd in t11• whole ot UH• l'loro.tl c e !l.. y alt•.

furt11er, t.he qud 11 t y of the I dnd elllbr.ic ed in t.h11 n...,.. p.arc1tl "'t Wo&t Poln 1• 4..oorer bot:h 111 ldnd qwo.l1ty and '"""ck.et qtallty1 it will coat wall in ox c oaa of SlS0, 0 00 t o p rovido t.h~ ta c 1lltica rolerre1 t.o a.hove, and ln point o( (.,, c t t h e: ""'"' dCrru1

Tl\4 SlS0,000 ia r" c oui~la Crom t.ho )Dint vent.LU• d.veloi;>&r, &nd will " not b. a CO•t to t.Ja Cr ovn LI\ .tny w..oy.

All in &l l, ..,1th the l' l.u1 pro v1d1119 for the •ubat1tut" p.a..rcel t.o l>e in fr•c ho.ld t.itl<1 at a n c11111n..al C.."Owt, tJ,., ~and it• .e.Ma<>cl.at..d lnat... n~nu.l 1 t.luw w! ll ~ .ocu tJ~ w-a 11 .. rv~ by th.a d..&1 ov•r&.11.

YollCa !a.it.htully,

~ -.. ~-~ _____-' --- -· ~ f . T, >toore Cha! n.An. l."

L

T" Ch.am-nan "j ·

9t.h Novewbar,1982.

W. J • Dall• r , li'.11q . • L.And Atlnu..11l•lCAt.ion Comm1•iii.LOn. 1-nd Ada.iniat.rat.i.on Build1r.g, lJ0-1•8 C.Or

~Sir, 1: W• con!ii."""111 herewith our acUMaiona o! ..,,.n data in cc.:pany wit.h repr•-nt..at.lve• o( t.he Cullt. -'"...:.>cl•t.ion o( Auatralia, rel~ t.o r .... rrJngcm>ent.a in r~~t o( tile tltl•• ot Iind at. Flor~nc• RAy.

lrl ••-nc•, tJ1• aqree6"'1nt.a c..... ched &t. t.h.&t.. a..t.11'\q a.ra &A "tollowg

1) Subj act ·t..o the followi11q condltlon•, th&t of Au.at.rail.• wl.l l au.crc.ndcr lip.cial L-a• -"il•nt'• Dlat.rict1

2) Th.at. •• a con.dit.ion C.C-1•alon vlll qc.a.nt. • Sp.:ici&l I....- !or the tar. o to th• Sc a... t A..a .oc 1. A t 1. oo o t Au. t..c a.l 1.A , wk.! ch I p.

~.-. t.e a oood 1 t.J..oa t.rui t upon pe ~ t. o! the • Q ! {)ne Do.l. l Lr I aa.

J) 'ftat •• a further condition of It.- (1) above, on aurren.der of Spe-cLal L-e.s ... )11'1), a •um ol Sl50,000 will be -cl. available t.o th• Soout A•.o<:latiqn of t-u•trali.a (Qu-rutl.a.nd Branch) by "'-Y o! auhatltution a.nd to provld• ••rviDOia al th• alt.a aat out in It.a. (2) above ai.JLilar t..o tho ... ncN avallabla on .iipec:ial r-a.a )11-4).

4) Th• itama agr11<>d t..o above .ar• on th• under•t.a.ndlnq and aubjact t.o th• Qu.

5) Th• aurr•nd.r .a..d -.Aciariq• and a rrar·)')l-nt..a t..o t.A.Jca af tact upoo the ~•land 'J'oUrl•t and Tcaval Co.rporat.Lon ~l•ti.nq • joint ~ a.ll t 49 ~ c. MlOCllllpa aa .lnq en. r lo.renc a a. y •it.. .

lfo under• Und th.a t. you "'i ll D. h.& p py to pr-var a a dr .a ( t o { a • u.bM.i a.a ion to Cab 1 n.e t. 1 nco rpo r a t. u-.q th• • • 1 t -.. , and Look. t ~rd t.o t'l""Oe 1 y l 09 • ~Y th-.r.o r a c your - i:: i 1 .. t oo nv-e.nJ. e.nc. .

IH no u t re. our ... Li.nq w i t.h tll • IJ cou t J\J JK>Ci a Uo n o ( Au• t.r aJ. la ( Ou-.n ...U lira,"100 ) th. t th .-y w il l be ho l .r .--x t: , And I t _, ul d t.c i l i t.A t:A t.h-.. AI~ t... 1 C t..n.. - t c....r vou.l d b.. ~ t.r r ..d lo ~ 1.ne t t o.c d9c l-e .l..OQ p.r '-OC t.o t.h4 t d.e t..e ..

. .... I ... A ·' TITLllt Florenoo l!.;:y - t'ropoaoo TNt" !.G .·.:::: :' :. ~ v:i lcr,;z. '9 Jl t • .

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uTh>1t tlY c,~c: • :>r'd.c-n th~t J?roT.lt:;icna for fr.011holCJ mnd thnt in . licy <11:: t.11' J . ~:!ln~, thca l.1:nd b'il oil;.h::ir: roi::l!'r:vornl er 9111'.nt..r:-

' !· / - I;,~..·.~'..:' l '~ ; • : .;.'. x . x x .· .. . ·:.· . I' . ~ ...... : ~: l ! .:·'.:l y .,.<

. ::} D/C Officer in Chorge , :· ... b~JD O!'f!;!l~£~ UIV\NCll. (D.H. H!1ita) ;~ f} '.'2f. S::Jii.D'.. j ror yo,~r ctte~tic~. ,-1.11.~2 ,,. ' .~, .!I, .J ] (D.fl. l~hito) ' r~~~!JlJ...1:..£.'l l( 2~.~1.02 . ' ' . / ' I I I I ! l I.

! I Ir 1· i !· ~ \ ·d 1-. ·." 1 ~ :'.] I . ·~;, ', .. ·. .. -1 .,. ·1 '•: "\l .,...;·'.f ~ :J:j SECUIUTY Cl.ASSIF'lCll'l'iCJtl "C" (:.,':. \ ._:' ·. :··· ·..:.i .: :·.1 ·, Dt::PAll11ffNT OF LANDS ' ·•

\ ' .:.. J r ' I L ' HfU S ll/\NE .: "l' SUDMISSION NO. ...,.:j · COPY NO •

. ~ > ,~ FOK Cl\BlN£::T ·.:· ------

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C 0 N f I D E N T I /\ L

fl - 'j1"' Re: Florance nay Proposed Tourist DavelopmC1.t. ..~ :: lf ·~:· .' ;-'.\ I Oy Decision No. 345'18 of 24th february, 1901 Cabinet decided thrtt . '(;i :-i l. .:.-·.' <>Pl-'roval in principle be qivon fol" the developmont of " majol' I ' international touri'1t. reP.ort <1t Florence Bi\Y on Hagnetic Island, and thilt the Queensland Touriut and Travel Corporation 'and the i Land /\dmlniotration Co1rvnission !Jc empo·,.,ered to take such action as .l is necesa"ry to prerare a document to cn.:tble applicati o ns f cjr the ! ·•F·.··: j· development to be inviled, fiLlh)

lJy Decision !~O- 37004 ul l st June, 1902 Cabinet decided tha t tl1e . j 7 - (Jroposale as

.. •. Jn c;uc.:h Sul;rnia?;ion No. 33808 (to which Decioion No. 37804 applies) ;·.-. ~ 3. ·~ ·: ~ reference ~ao D'\..~de to the Queensland Tourist . and Tr~vel Corporation acquiring land resource!! ..,t very concessional terms and conditions. /\ piece of land referred to i.n such Submission, and to which such Decision ;ipplios, is located at Florence Bay on Hugnetic Islar1c.l and is ,;l partly presontly hold under Special Lea!le tlo. JlltlJ by ''The Uoy Scouts /\oooc.:iution, incorporated by Roydl Charter, Queensland.llranch" (ilbo ut 1'1. 72 hoc tares) and pa1·~ly presently vacant Crown lnnd (about ,.} 71\ hectares) . .J Spa cia l Lcaoe Ila . Jllt13 con1fJrises lund de~cribod as Portion 2G , County . ~ 1 4 . .. ~; J of Elphinotone, Parish of M~qnetic anu l 08. 72 ...':_'. ] .. ·.;1 hectarea is i

. ;

I \.; such n.zgotiation&, in tJ19 rnl\in butween the Quoen.sland Tuu.rint and Tr.-wol Corpor.iotion •nd Tlie Scout AseocL1tion of /\uetr'alL1, 1-1ith tho c: w .11d /1r.lnini~tratiC\ll C~i>rnion participating from tlaxl to ti11¥.?, hilVO roached a at.nqe of fruition in that. it has been agreed th.l\t 111c Scout Aoaoci-!ltion of huet.rali..1 11ill Le preparod to S1l.t'rendc[' Speci,11 Lease No. Jll4J in roturn for -

(a) /\ SpocL::.l l-'3.ut.hnr ity will l.>e sought for tJ1e grant of a fl.'eehold tiUo in rCl'"poct of such ldnd tr; Tho Scout J\!;svciation of J\uotrnlillJ 11.nd au.ch SpacLll L·: ·( (b) Payn~nt. by th:! Queenolc>nd Tou.C'illt and Travel CorpoC'ati.on to ."- ,. o{ sum i\n.d I The Sl:out. 1'.n::iociatior1 of llust.C'a1 i" a of One hundred Ci!ty th--:>~o.!l!ld L'Oll.,.ro ($150,000) by \'lay of sul.>!lt.itut.ion arid t.o ._ , p .tuvide vr:rvicc,.;, uuch '"' a.:coo.:&, f>°"'<>C', water, ,tel"phono and - 1 gcwe.r<1~0, to LJ,., i;iLc C'cf•!rrecl to i11 (a) a.bov" ~· such amount of One hundred a1i ($150,000) will l.>e ~ ... rocoup~blo ftoN t.J1e Huccessful joint venture develop7r lendereC' who undort..ill<.,r; t.ho touri>e " condition of tc11dcr that such successful joint ventw:e d2vclopnr t.nodut·er pC'ov i<..le such sum in each.

7. /\tt..lcht!

(a) Letter datod 9th No\';:irrJxir, 1902 frDlll the QueO!l~\"r.d To~ri:::t a.nd Trnvcl Coq>0C'at.iori i;ett.J.ng out ti~ terms and conditian& o( llgr<'-::".1.Cnt..o C'r.11chod wit.Ji The Scout /\.oaoc:iation of /\11atralia - Aru1onur" ·a·.

(b) Lctt;.;:ir datd 1.Dth Novmn!x?r, 1982 from Tho Scout ll!icodation of /\11.'itroli" cc.n(inning l:hu ten.a& of such agC'eenv.!nl: reached - h.nnoxv..ro ·c·.

r ' ~-. (c) ~ttor um ot One hwld.rod cind fifty tllO\.lsand Dollan ($150, 00.0) iH>d t:lrJI rocoup!I:!:int tlwreof - /\ruicxu.re "O".

8. T.19 ll'ln:..l Tho Scout llncor.ial:ion of /\uotralia io sw:rendering to the '··-·:·; I~. j Cro't!TI (i.e. t..h

_. propoaod to l>e grant~d Lo The Scout /\G.9ocilltion o( J\u&t..r'illiil, itnd .' ·.1 \lOuld h<'lvo " f<".r l1J.qilor valuC!. The ro1>p0ctive locatiorrn of suc h ; .J lando a.re bC'o.-.dly ide11Lif lc-

.,·i-1 9. /\1; indic1tt<1d .::.bove tlie 1and compC'~scd i11 Special LeaGc tio. JJ.14) and _l.Jropuood to l'e .GurrendcrCld by The Scout .l\..<>oociation of AWJtra) ia to ~·· . . the Cr<..Afn foC'~ p.:lC't of an «rciu ideal for the du\'oloprnent of an i11t..an,;,Lion11l tOUC'lSt rooort; a1,J the dovclopment of an inteC'naticnal lou1 inc runort in t.t • .i:. loc ality will l>c of great. l>entotil to N•)rLh Qutrn11rJL\nd an-;i tu \{11cc:nsla11cl ,1:; a \./hole and to the vu e nr.land 'J'ouriot ar><..I Trav1il Cor.i:-orati011 .

10. l,oq"1 dol,bts au to tl1e offic.icy ul incorporating a cor1ditio 11 in th';! S \.k•t:J.111 L..,d(; ., propot.:!'tl Lo bl! 41 «11ced to Th~ S c out /\so; oc iaticn of

/\usLr.dill, •ndbli.ny .9peci a l lu<)J.fllllti<:m. l.,.'l<;l111.:1tJun Htll be nocossnry tu resolve thin nl..ltrcr .

• :: ,. .,

I I - J - I • /It tii7<:>0 op."?1cin1l circumi;t.llnc;cs arise which make i.t dcrnir.:ible to have in tM L~.nd /'.ct po'b'ct' to incorporate in a Special Lea1rn a condition c. C'Jl"-1Jlioy tJ1~ qcAnt of " freehold title upon payment of a stipulated al..!D. of C1.-oncy, be it nfJmi.11.:i.l or relJted or unrelated to m."lrket value .

. . f :j 12. It ts nol pocui.blc undor exit1ti.n4 law to grant a Special I..e.!~e, ii"\ the ~ proeont cl.rcU'Jli;L.rncoR, r'ur any µer iod in exce5S of thirty years. ,( .,i . 13. ru::CU:t!IDIOJ\TlOH: '

. '\ We recoc1rMind: ' .·i~ - ... , l. That approval in principle:, Lie given to a transaction under ;J which The Scout /lt;nociation of Australia surrender.a lo the Cro1r111 it!l Spocial LeaRc No. 31143 in exchange for - ·: ·:1· ~l ~·.. i· ! \ (a) The grant of a S;>ccial Le<1se to Tile Scout !lssocialion of \.. '.1 /luot.ralia over the area identified in /\nnexu.re "I\" fo1· a .. ... l peri~ of thirly years al an dnn11al rental of $30 per annulil for c;uch whole iier.i.od: liluch Special Lease shall contain a condition that upon payn1e11t of the 9um of One Dollar. ($1) ~ : xccut:ive /\uLIH)I i ty wil I be sought for the gr<1n,t of a fee-

.=. • ~ :l UnlJlc in respocl or' the t,,nd compri.scd therein; and 'Which ··. ; :.: Specinl Lease sl1.1 ll nol co11t.r1in· a .six month reswn~tion clause;

tbl Payment of the sum or One tiu11.lred dnd fifty t.hou~~nd ooll;:irs ( $150, UOO) by tlie 1..•uP.ensl;1111I '!'CJur ist and Tr ave I Corporation to The Scouc f\s,.;o<:i <.c.ion of /\ustr,\lia <1s a substitution and to provide access, pu·.. 1t'r, 1-1uter, telephone and sc11crilye to the 'land referreu to i11 (.i) .11..>vve - which ;:imount of One hl111dred dnd fi.fty thou.,; ,1nd Dol.ldrs ($1SO,OOO) will· bt! recoupob lc from the succcr.Qsfu.l Joint venture dcve1opor tenderer (11 rc11pcct rJ! th<11 dQl11til..O~!'l:l11t c,C the intarn<'lt:ion.!>1 t.our1ot roc.::irt.

J. Ti"wlt tJll'I i:;:ott<.'lr b:ir ro(ei:rod ~c.:lt to Cll.binat for (lndl .t.pµrov.1l upon ouch a nuc_c o~nful joint venture deivelopor tcnd~r~r payiny in ouc:h 4eount ol ()110 hundred and fifty thousand D:Jllarb ($150,000) and uron tho amending leql9lation rc(crrcd to Ln 3 _ly.\roof bccowing effective.

3. That an a..r.>endm!:!nt to the Ldnd /let ~ proponed to enable the incorpor-at1on in a Sµec ial Leu~e, in 9pecial circuu1st;incen, of ;i. condition providing for th~ grant of a freehold title to the less.ie o( such Special Leane of the 1Jhale or- .:in idontifit>d pu.rt of tha land co1npr-isc-d t.hcr-cin upon the pi>.)'ll'Cnt of ll eur.i o{ money 9{.X!cified in such lease conditi.on; ;inr.I cnn.bling the g rant of i;ucll f:rcchold title upon co:11plia.nce ... ith such a condition of lcatlc.

!

l .... l!:~:.q~~<;>~q ...... ll:I: '·':. (: ~ ~:-~~".il...... Hi11i!Jt.cr tur L..111cls c\nd forestry 11 M1r.1ureL lu·, TvWlDtn, NJt1on..il I I<> d .:.. , :.ivct· t cu1d the /\1 ts 1 ·n !I t' n 1,c 1 : 1,..tn1.! l'f n _.:.______.....l.ll£l.ll.[l J,:__::.:

• \ ... ..' A~o Acre.s --·- A (, Tl b 2 .1'.?I c 3.51 D 2 35 E. ~ . 31 ·-- Tot·o1 CL~':)\

ciLSlacs = 9 .9c hectures

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• I CAUTION CEPT/'"'' 01r.. 1r t--1":-tj tQ Ot1 T\-11S r\ ' ' '' ~v:... " ( ltOT Dll N i..

~R No.

PARISH OF lv1AGl--JE.TIC COUNTY or= El_Pl-111\JSTOr-ir COrv1PILE.O FROM 1 L .A D OF TOVVl'-.JS 'IU.E. i SCALE. IQ CHAlf..J S TO AN 11'-JCH I 1"1[RID\AN OF E.P. 2:;;.Q .. I PLAN ! ~~~~~--~~~~~~~~~~-[' I I ! i •. ,__ ... '--"'" /' ' ·-

' ~ 0.t.::..~J Hopgood and Ganim . -~,( Solicitors and Notary Joo Ganim u.s. _,...... , Third L6116' 141 Ouiten Street Brisbane. A=ralia.. 4000 Paul Hopgood P.O. Box : 367 BrisDane ~1 Tony Baldwin 8A..u..L c--1 Bruce Humphry.I Ausdoc : OX 40127 ~ C

K. _.M.G. I _M .L.A. I M.P. I Premier 1 s Departrren t , Parl.i.arrent House, Corner Alice and George Street, T -SBANE, Qill., 4000.

-- , , Dear Premier I

RE: FIDREN:::E BAY ------We act for Geoffrey Eric Orpin a design consultant. ·- OW:"Client---nB:S an agreerrent with the Scout Association of Australia whereby . he is to develop Florence Eay in accordance with Plans already sul:mitted to the association. Our client jnstructs us as follows:

1. That in or about 1981 or 1982 the QITC announced that they profXJSed to develop Florence Bay. The proposed developcrent involved a payrrent of $150, 000 to the Scout Association of Australia together with the costs of relocation of the Scout organisation to Westpoint. This proposal only proceeded as far as the preliminary developcrent concept stage.

2. No works or developrent occurred for approxinately four years. Accordingly, Mr. Orpin who at that stage was an officer of Ollar Pty. Ltd. was approached by the Scout Association of Australia to put for:wa...rd proposals with respect to the developcrent of Florence Bay.

3. Mr. Orpin :initially put forward a basic concept which proved attrc.ctive to the Scout Association of Australia. Accordingiy, Mr. Orpin was engaged by the Scout Association to be the proposed developer of Florence Bay. In evidence of this we note correspondence received by our client from the Scout Association of Australia Kennedy area dated 7th May 1986 .

SURFERS PARADISE OFFICE: Second Floor 17 Orchid Avenue Surfers Paradise. Aus1ral ia. 4217. Telex: AA 42454 Ganhop OX 41605 Gold Coasl Facsimile: (G2-G3) 075 383811 Telephone: STD 075 382988 ISO 61 75 382988 H~G J I

- .. r;f.\.~ G M _ ~ourable Sir Joh Bjelke-Petersen, K.C .M.. , . L. A. , M.P. 15th October 1987 .

4. On the basis of Mr. Orpin being engaged as the proposed developer Mr. Orpin carried out substantial work such work including. . the preparation of Heads of Agreerrent, draft leases , the preparation of a full econanic impact study including the staterrent of annual operqting results, comprehensive specifications, schedules of costings and full ar-Jlltectural drawings . The cost of this work to date is approxirrately in the arrount of $100, 000 . As you will apprec:i.ate Mr. Orpin has carried out substantial work in this regard.

. 5. The ccmprehensive proposals put forward by Mr. Orpin proved attractive to the Scouting Association. Accordingly, the Scouting Association then agreed with Mr. Orpin that he, and he alone , would be entitled to develop the project in substantial ccmpliance with his proposal.·

6. It has care to Mr. Orpin ' s notice that the Queensland Tourist Carrnission have indicated a renewed interest in developing Florence Bay in accordance with their previous proposal.

The activities of the Queensland Tourist Corrmission have caused our client great concern and anxiety. Our client rrain tains that he has an agreerrent to develop the Florence Bay area with the S~outing Association. Furthe.rm::)re , our .client has expended much tirre, effort and rroney in carrying out the developrent proposal to its comprehensive stage pursuant to this agreerrent.

8. We derrand that the Queensland Tourist Carrnission desist in stating that it has intentions to develop the Florence Bay area. If the Queensland Tourist Comnission induces the Scouting Association to repudiate its contract with our client, our client will have no alterative but to comrence legal proceedings and obtain an injunction to restrain the Queensland Tourist Corrmission " or any other body entering into or carrying out an agreerren t for the developren t of Florence Bay . In addition our client will claim darriages both for the work undertaken to date (which is quite substantial) and for the future loss of the project .

Yours faithful¥

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