Magnetic Keys Proposal

Magnetic Keys was a marina/commercial/tourist development originally proposed by Geoff Orpin in 1983, sited in the northeastern sector of Nelly Bay, Magnetic Island. A special lease was granted to Magnetic Keys by the Queensland Government in August 1985 to enable the developers to conduct feasibility and environmental impact studies on the proposal.

An area of some 16 ha, some of which would be reclaimed from the sea bed, would contain:

• a 250-room international standard resort hotel,
• a 50-room motel,
• a 160-bed hostel,
• a tavern,
• 40 holiday apartments,
• two swimming beaches,
• a public boat ramp,
• ferry and barge landings,
• shops and car park,
• and a 150-berth safe water marina. 

Twelve residential building lots would be available on Bright Point, a Nelly Bay headland. The developers planned to excavate the southwestern to southeastern section of Bright Point for the resort hotel. The excavated rock would be used in the construction of the marina breakwall.

The marina basin would be dredged from the reef flat (in the World Heritage-listed Great Barrier Reef Marine Park) and the dredged material would be piled on the beach and foreshore (the State Marine Park) to form the land on which the shops and accommodation, etc, would be constructed. The access channel would be dredged through a fringing coral reef of scientific and educational significance.

Development costs were estimated to be in excess of $50 million in 1986.

In 1987 the company was finally sold to equity partners Linkon and Pac Prop (Interwest), and the project name was changed to Magnetic Quay.

Key Issues

Environmental Costs

• Alienation of World Heritage Marine Parks for private gain
• Excavation of 1/3 of the Nelly Bay reef flat
• Reclamation of 1/3 of Nelly Bay beach and foreshore
• Destruction of fringing reef to construct access channel
• Chronic degradation of nearby reefs from sediment, fertilisers, anti-fouling paints, oils, petrol and sewage
• Loss of visual amenity
• Removal of Nelly Bay mangrove community

Economic Costs

• Excessive on-going costs in maintenance and infrastructure
• Adverse economic effects on Picnic Bay businesses
• New businesses = effects on existing MI's businesses
• Cost of Local, State and Commonwealth legal appeals

Social Costs

• Higher infrastructure costs = higher rates
• Longer ferry journey = higher ferry fares
• Longer, rougher trip for medical evacuations
• Close proximity to Nelly Bay school = years of disruption
• Increased demands on schools, hospital, council services
• Loss of public open space, beach, foreshore and marine park
• Visually unappealing entry point to Magnetic Island