DECISION NO. CABINET MINUTE ')~ oo G BRISBANE, // 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 ~ Queensland 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 Australia 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 Townsville 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. ,~1- __ cc~- '- ­ ~\\ ~ -- 'TO~- .J ~ ·Il-g\_- \.\ ¢~- . - · LiverPoinL -- -- '. 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.