Magnetic Quay Project (1989)

The original name of the marina proposal for Nelly Bay was Magnetic Keys, a tourist/commercial development that was to cover one-third of the Nelly Bay foreshore, beach, reef flat and fringing reef.

Geoff Orpin, the original developer, applied to the Lands Department for a development lease in 1983. By 1988 the project had changed hands, and its name was changed to Magnetic Quay. It was still a major tourist/commercial complex, but the layout and composition of facilities had changed.

The 1988 Magnetic Quay development required the construction of 600 m of breakwalls, approximately 15 ha of reclamation and the dredging of a 12.3 ha marina basin.

The main components of the development were:

• 240-room, 3 to 3.5 star resort hotel
• 60 two-bedroom resort apartments associated with the resort hotel
• 150 berth marina
• barge and ferry terminal
• public boardwalk lined with restaurants and marina facilities
• 7,500 m sq shopping centre with a supermarket, local shops, local commerce and tourist-related shops and facilities
• tavern (2200 m sq) incorporating three bars, a TAB outlet, drive-in bottle shop, entertainment facilities and manager's residence
• 400-bed backpackers accommodation
• 2-unit developments with a combined total of up to 94 units

The developers proposed to excavate Bright Point, the headland at the northeastern end of Nelly Bay, to provide rock material for the construction of two breakwalls, which would be located in the adjacent Great Barrier Reef Marine Park. Behind these breakwalls, which would be built on top of the existing Nelly Bay coral reef and reef flat, a marina basin and access channel would be excavated.

The spoil from the excavations would be spread over the remaining area enclosed by the main breakwall, creating over 10 ha of waterfront land, where once there was reef flat, sandy beach, mangrove-lined creek mouth and natural foreshore.

When the developers were placed in receivership in 1990 and works had been abandoned, the breakwalls were almost complete, and the most beautiful section of Nelly Bay's fringing reef had been destroyed in the dredging of the access channel (about 75% completed). The dredging of reef flat to form the marina basin was not attempted.

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