Killalea State Park

FAQ

General Frequently Asked Questions

Question: What legal documents have been signed to date?

Answer: A Development Agreement between Killalea Coastal Investments and The Killalea State Park Trust. This permits Killalea Coastal Investments to prepare a concept plan and development application (DA) and if approved undertake the development of the eco accommodation resort.

Question: Is the land to be sold?

Answer: The Killalea State Park is Crown Land and the land ownership will remain vested in the Crown. The owner of each individual lodge and commercial dwelling will sign a 50 year lease with the Killalea State Park Trust. The lease permits the occupation of the dwelling for a certain number of days per year by the owner and for the remainder of the year the dwelling is to be made available for guests of the resort.

Question: What is proposed?

Answer: The project consists of an accommodation resort of 202 eco lodges, restaurant, café, conference centre and recreation facilities. The lodges will be contained in three separate zones of the park, known as the Crest, the Valley and the Farm. These zones cover an area of 17.6 hectares, less than 7% of the park’s total area.

Question: Who can stay at the resort?

Answer: the lodges will provide year round accommodation for singles, couples, families and groups of friends in a range of studio, one, two and three beds and five bed lodges

Question: What facilities will be available at the resort?

Answer: pools, gym, day spa, a restaurant, café, conference centre.

Question: Will the community get to the see the development application?

Answer: Yes, the development application will be publicly exhibited and members of the public and other government agencies and community groups will have the opportunity to make comments about the proposed development.

Question: When will a development application be submitted?

Answer: A project team incorporating various consultants is being formed at present. It is expected that a concept plan will be lodged in the next six months and placed on public exhibition with supporting environmental studies. If approved, a detailed development application will follow, also to be placed on public exhibition.

Question: How can I get involved?

Answer: Call the 1800 number to provide your feedback or ask questions, to receive newsletters or if you want to be informed about future community engagement activities

Question: What is eco-tourism?

Answer: The definition of ecotourism adopted by Ecotourism Australia is: “Ecotourism is ecologically sustainable tourism with a primary focus on experiencing natural areas that fosters environmental and cultural understanding, appreciation and conservation”.

Question: What is a State Park?

Answer: The Killalea State Park is one 10 State Parks in NSW. A State Park (formally called a State Recreation Area) is a public reserve which provides for a variety of recreation and nature study opportunities. A State Park is not a National Park. Each State Park provides a range of recreation facilities and visitor accommodation such as camping and caravan sites, bungalows and cabins, picnics, BBQs, camping, swimming, water sports and bush walks.

Question: Who manages the Killalea State Park?

Answer: Each State Park is managed by a community trust board with a focus on providing public recreation, as well as preserving the environment. The Killalea State Park is managed by the Killalea State Park Trust. The Trust is appointed by the NSW Minister for Lands.

Question: What upgrade works are proposed for the park?

Answer: The Park Trust is proposing to undertake a number of new upgrade works to the park including a new car park area and disabled access to Farm Beach, new amenities block, new picnic and bbq facilities, board walks and nature trails, improvements to the camping area and environmental education centre.

Question: Will there be an entry fee to the park?

Answer: No, entry to the park will remain free.

Question: Will the public still have unlimited access to the park and beaches?

Answer: Yes. In fact access to the park and Farm Beach will be substantially improved. A new pedestrian footbridge is to be constructed between the park and the Shell Cove Estate over the Quarry Haul Road. There will be new public parking at Farm Beach and near the entry gates and rotunda. A new more pedestrian friendly access track to Farm beach will allow improved access for all residents.

Question: How much money is the park trust to receive and over what period

Answer: The Park Trust is to receive $13.5m over a five year period

Question: will the park receive any ongoing funding from the operation of the resort

Answer: There are no ongoing rent payments. The Trust is to receive all of its funds upfront.

Question: how does the park receive its funding now?

Answer: The Park Trust receives it funding from a number of sources. The Trust operates the camping ground, provides a number of training programs such as work for the dole and other health and safety training courses, the education facility, the kiosk and it receives a government grant.

Question: what will the park trust do with the funding it receives?

Answer: The Park Trust is proposing to undertake a number of new upgrade works to the park including a new car park area and disabled access to Farm Beach, new amenities block, new picnic and bbq facilities, board walks and nature trails, improvements to the camping area and environmental education centre.

Question: Will the Park Trust employ people once the resort opens

Answer: The Park Trust employs a number of staff including park rangers, office staff, maintenance staff, OHS training staff, staff at the education facility and the camping ground. All of these functions will continue once the resort opens.

Question: who governs the behaviour of the people staying in the park/resort?

Answer: Each person entering the park has to obey by the park rules and the direction of the park rangers. This will apply to all people staying within the resort.

Question: what rules/agreements ensure that the lodges will be maintained in a reasonable order throughout the 52 year lease period?

Answer: A resort management statement and strata management statement will be signed with the Park Trust and the resort operator. These statements ensure the proper maintenance of the resort area. Each of the lodges has an individual lease requiring the lodge to be completely refurbished every ten years. There will be a sinking fund established to ensure there are sufficient funds to upkeep the lodges and the common areas.

Question: will the park trust continue to exist after the resort is built

Answer: Yes, the Park Trust will continue to operate in the same way it does now.

Question: how did we get to where we are now?

Answer: In 2002, the Park Trust decided to explore a partnership with a private investor to provide funds to upgrade the Park's facilities. Various Expressions of Interest were received and the successful proponent was chosen. After a period of negotiations, the development agreement was signed with Killalea Coastal Investments (KCI) this year.

Question: how do the lodges touch the ground?

Answer: The lodges are designed to touch the earth lightly, we envisage the lodges positioned on pole footings with no concrete slabs or permanent foundations.

Question: will the lodges be constructed on site

Answer: the lodges will be constructed off site and bought into the park via a truck to minimise the disruption to park users

Question: is the lease for a fixed period of 52 years

Answer: The lease is for a fixed period of 50 years plus two years initially to allow the lodges to be constructed and bought on site.

Question: does the lease have a renewal clause

Answer: There is no automatic right of renewal or extension to the lease

Question: is their a guarantee in the lease that the lodges and other buildings will be removed at the end of the lease period

Answer: The lease has a make good clause requiring the removal of all of the lodges at the end of the lease period. The park can then return to the state it was prior to start of the lease

Question: will the individual lodge owners pay council rates

Answer: Yes the lodge owners will pay rates to Shellharbour Council for services such as garbage/recycling, water, local parks and other community facilities.

Question: what were the results of the survey?

Answer: In June 2007, KCI engaged local firm IRIS Research to undertake an independent survey of community attitudes and interests relating to Killalea State Park. The survey found that;

Question: is this a time share

Answer: No it is not a time share resort. A time share comprises many owners of the one dwelling. At Killalea, each lodge will only have one owner. When that owner is not staying in their lodge, it is placed in the rental pool for short term accommodation.



A group of community representatives attended the Killalea State Park Trust meeting at 5.30pm on Wednesday 22 August, 2007 and presented a number of requests and questions.

The Trust undertook to respond to their written submission within 2 weeks. Their requests and questions appear below together with the KSP Trust's response.

Q1. Can we have the information we requested through Twyford regarding the agreement, tender evaluation, finances, and the concept plan which was provided with missing pages?

It should be pointed out that Twyford Consulting does not act for the Killalea State Park Trust and therefore does not have access to certain information relating to tender evaluation, finances etc. They have been engaged by Killalea Coastal Investments to assist in the preparation of the D.A., in particular in the area of public communication with the developer. The Trust provided a copy of the original concept plan to Sonia McKay at the meeting on 22/8/07. The Trust is not in a position to provide details in relation to the tender process as all submissions tendered by the various proponents were done so on the understanding that the Trust treated their Intellectual Property in the strictest of confidence. The Trust initiated two Probity Reports during the tender evaluation process as required by Government standards. The Development Agreement and the proposed Leases relating to the proposal are on the Department of Lands web site. Killalea State Parks 05-06 Annual Report along with financials appear on the Department of Lands web site. The Plan of Management and the addendum appear on the Department of Lands web site.

Q2. The agreements on the internet appears to include: Development Agreement, Development Lease, Accommodation Unit Lease, Commercial Lease, Owners Corporation Lease. Does it also contain an unaltered version of the Development Plan (Annexure B) included at the time of signing the agreement. Initial Plans for Subdivision, A C Accommodation Lot Lease – Accommodation Unit Lease? Annexure O? or G? Commercial Lot Lease? Annexure H. Strata Plan Annexure C. Letting Agreement? Annexure L.

The copy of the original plan described as Annexure B was provided to Sonia McKay at the meeting on 22/8/07. Many of the plans are conceptual and as such may undergo substantial change during the application process. All relevant documentation which is required to be on display is currently on the Department of Lands web site. The various annexures referred to either appear on the web site or will be made available during the consultation process.

Q3. What alternatives were pursued and with how much effort?

The Board of Trustees at Killalea State Park are a very hard working group who have the best interests of the Park at the forefront of every decision made. The Trustees are volunteers who have dedicated thousands of hours of their own time to ensure that Killalea State Park is managed in a sustainable and environmentally sensitive manner and in accordance with the Crown Lands Act and the Plan of Management. The Department of Lands has issued Trustees with a Trust Handbook which basically outlines the way in which NSW Government expects State Parks around NSW to be managed and underlines the obligations of Reserve Trusts.

The KSP Trust has investigated and undertaken a number of revenue raising ventures. It should be noted that 8 other State Parks in NSW have initiated a ‘gate fee’. Had Killalea State Park been allowed to initiate that process 10 years ago we would not be in the current situation. All fundraising ventures require capital. Killalea State Park had none. And the only obvious means of raising funds via a ‘gate fee’ was taken from us.

Q4. Who initiated the proposal - was the initial approach by Government or developer?

The Killalea State Park Trust initiated the proposal and was strongly supported by the Department of Lands and Government. The Trust acted in accordance with the recommendations contained within the Trust Handbook.

Q5. Will each lodge have its own subdivision and lease?

Yes.

Q. Can the lessee begin building prior to Development Consent from the appropriate authorities or Agreed Development Consent?

No. The lessee cannot commence any works on site until the Development Application is approved by Government.

Q6. What is the consequence if Trust members provide information in the public interest to the public?

Generally speaking Trust members can speak to the public about matters pertaining to the Park. However, there are existing resolutions in some instances, where it has been deemed appropriate that a nominated representative of the Trust speak on certain issues.

Q7. What is the consequence if Trust members formally vote against the proposal now that a concept plan exists?

The Killalea State Park Trust formally resolved to execute the Development Agreement. That agreement was executed on 24 April, 2007. That Agreement is an enforceable contract with all the usual terms and conditions of a contract. If that contract was breached then the other party would have all the usual rights of remedy.

Q8. Could the Trust provide evidence that the 5 December 2002 meeting was a public information session that had prior relevant publicity to advise people of it and that anyone could attend?

The meeting referred to occurred 5 years ago. There were several hundred invitations sent to media, politicians, community representatives, Shellharbour Mayor, Kiama Mayor and council aldermen, local identities and any other ‘stake holders’ which could be identified at the time. The meeting was also well publicised in local media, print and television. Killalea State Park office staff have previously given S McKay copies of the media reports of the event. It was reported in the Illawarra Mercury, Lake Times, Kiama Independent and the Advertiser. The event was also reported on WIN TV on 5 December 2002.

Q9. Can the lessee stay beyond the date of termination?

The lessee has a 52 year lease. It is a matter for the Government of the day to determine whether a further lease period is appropriate. That option is in the favour of the lessor, not the lessee.

Q10. Is the lessee going to place a caveat on the three development areas proposed?

See question 10 above.

Q11. Does a caveat if used automatically terminate after 52 years?

The question asked needs to be clarified in terms of events which might lead to the implementation of a caveat.

Q12. Why was the Plan changed and who masterminded the change?  It is now very different and allows different things.

The Plan of Management was amended to more accurately reflect the amendments made to the Crown Lands Act in 2005. Whilst the Shellharbour City Council LEP allowed tourist facilities within Killalea State Park the original Plan of Management needed to be expanded to reflect permissible uses within the zone as specified in the LEP. The Killalea State Park Trust was responsible for developing and launching the Expressions of Interest process AND was strongly supported and encouraged by the Department of Lands and State Government.

Q13. Why is the lease to be 52 years?

Many of the original Expressions of Interest received by the Trust requested a 99 year lease. The successful proponent required a minimum of 50 years which the Trust believed to be reasonable considering the expense associated with developing the agreed 6.6% of the Park. The leaseholder needs a 50 year term in order to make the proposal a viable commercial enterprise. An additional 2 years was permitted in consideration of the construction period. The land is still Crown Land and will be Crown Land at the end of the lease.

Q14. Why was there no consultation on the decision to lease the Park?  The original meeting, which has been called a public meeting, was by invitation only.  It wasn't really a public meeting at all where ordinary people could come.

The initial meeting was to advise local stakeholders of the Trust's intention to call for Expressions of Interest for projects to develop the park. This was widely reported in the media Win TV (5 Dec 02), The Illawarra Mercury (6 Dec 02), The Lake Times (11 Dec 02), The Advertiser (11 Dec 02) and The Kiama Independent (11 Dec 02).

The Plan of Management and Proposed Amendment was on public display inviting comment, for four weeks in three locations (Shellharbour City Council, Killalea State Park and Department of Lands Nowra). The fact that it was on display for comment was advertised in the Illawarra Mercury, The Lake Times and The Kiama Independent.

At this point the Trust has only laid the legal platform to allow a development application to be lodged. The consultation process will now start as part of the development application process.

Q15. How is the $585,000 given to the Trust by the developers being spent?

The money has been allocated for various capital works projects – the main ones being construction of car parks and sealed road to Killalea Beach, sealing the camping area entrance road and repairs to existing roadways.

Vehicular access and car parks to Killalea Beach is an issue that has been repeatedly requested by the local surfing community.

Q16. If the development does not proceed, will the $585,000 have to be given back?

Generally speaking the money is non refundable.  However, if the Trust breached the terms of the Development Agreement it could render the Trust liable to refund those funds.

Q17. Has the Trust, by accepting the funds from the developer, committed to the development in some way that cannot get out of?

No.  Acceptance of the funds is an option payment as part of the agreement. The payment does not trigger any action in the agreement. The developers have received authority from the Trust and the Department of Lands to prepare a development application.

Whether or not the development application is approved is up to the relevant authorities.

Q18. Can the signed agreement be terminated and if so is this at a cost? If so, how much?

See question 16 above.

Q19. When the Development Application for the proposed Killalea tourist resort development is submitted, can the Government refuse the application and if so, does it have to pay compensation and if so, how much?

The NSW Government can refuse any Development Application which does not conform with legislation, planning policy, LEP, REP or SEPP. No compensation is payable unless the NSW Government is held to have breached a contract.

Q20. What is the leaseback arrangement?

The Leaseback arrangement is clearly spelt out in the documentation on the Department of Lands website.

Q21. What options exist for both the lessor and the lessee at the end of the 52 years leasing arrangement? Will the Killalea land revert to public land and if so will this be at a cost to the Government?

See question 9 above.

Q22 How much is the development expected to cost? Is the land expected to be a 'state significant site' and the development application expected to be a 'major project' under Part 3A of the Environmental Planning and Assessment Act?

The answers to these questions are yet to be established.

Q23. How much money does the Killalea Trust need to properly look after the park and how is that money spent?

The Park is in its developmental stage and the capital expenditure is higher now as the Park is constructed. Once complete it will require recurrent expenditure for maintenance, upkeep etc. In keeping with the Plan of Management and the Trust's obligations to the tax payers of New South Wales the Park currently requires approximately $750,000 per annum. Capital items such as new roads, boardwalks, amenity blocks, seating, pathways, Environmental Education centre, fencing and the infrastructure to support the Park usage such as electricity, sewer and town water are major expenses which the Trust need to fund.

The current NSW Government funding is approximately $245,000 per annum. Shellharbour City Council makes no contribution towards the Park upkeep.

Q24. Since the Killalea Trust was founded, how much revenue has it raised per year, and how has that revenue been raised?

This information is not currently available in summary form.

Q25. All the discussions about the present proposal have been held "in secret". Why have the Trust members been sworn to secrecy over this, and why have the Trust members who represent both Kiama and Shellharbour Councils not been allowed to report back to their Councils about this proposal?

See questions 1 and 6 above

Q26. What other ways of raising revenue were considered before the Trust decided to go ahead with the present proposal?

See question 3 above

Q27. At present, there already is a camping and cabins area, plus a nursery in the park. How does the Trust advertise these facilities and what revenue does the Trust receive from them?

Please refer to the Annual Report of 2005/2006 for details on revenues and expenditure. This report is available on the Department of Lands website.

Q28.We are told that the present proposal was first suggested in 2002. Why was there no public consultation about the proposal at that time?

See questions 8 and 14 above.

Q29. The Trust has now engaged Twyford Consultants to present the proposal to the public. Why is that being done now, after the tender process has been concluded? Is it not now too late for the public to have any input?

Twyford Consulting has been engaged by the investor, Killalea Coastal Investments, to design and manage a community engagement process to support decision-making on the concept and detailed design. Through that process the public can have input into the design of the proposed ecotourism resort.

Q30. The Killalea State Park is public land and as such is a public utility. As such, why is it not treated in the same way as other public utilities such as public transport, roads and public hospitals? The Government, and indeed the public, does not expect them to pay their way.

Rather than a utility, Killalea State Park is Crown Land dedicated by the NSW Government as a State Park. It is NSW Government policy that State Parks work towards self sufficiency.

Q31. Is the money derived from this proposal going to fund Killalea upkeep or going to fund the new positions within the Department of Lands at Batemans Bay?

The funds derived from the proposal, if it proceeds, will be used to fund works within Killalea State Park.

Q32. Are the units in the proposed development going to be "time share"?

The units in the development are not time-share units.

Q33. If Killalea only needs $250K per year, why does the State Government need to raise more than this from the Park to keep it going and viable?

The Park needs significantly more than $250,000 per year to be viable and to meet the needs and expectations of the community. See question 23 above.