Restoration in doubt as Double Island negotiations with major developer stall

A deal to secure a new leaseholder for a treasured tropical island off the coast of Cairns is in doubt despite plans for the getaway to undergo a bold $40m makeover if approved next year.

The Queensland government has entered exclusive negotiations with a major developer to revitalise Double Island. Picture: Brendan Radke

A deal to secure a new leaseholder for a treasured tropical island off the coast of Cairns is in doubt despite plans for the getaway to undergo a bold $40m makeover if approved next year.

But Natural Resources Minister Dale Last says the state government is in “exclusive negotiations” with a major developer to start work on Double Island after billionaire Benny Wu was stripped of the lease last year.

The Cairns Post can exclusively reveal that the Morris Group hopes to add the luxury resort to its diverse portfolio with a formal announcement potentially made before the New Year.

Double Island resort, off the coast of Palm Cove, is in complete disrepair with much of the existing infrastructure unlikely to be salvaged. Picture Emily Barker.

But the deal is on a knife’s edge with the company frustrated by “red tape” and delays under the LNP leading to threats of walking away if an agreement can’t be reached soon.

It’s understood that the bid now hinges on a critical meeting between the proponents and the Department of Natural Resources and Mines in Brisbane next week with the terms of the lease still yet to be finalised.

Double Island resort’s pool in 2012 before the destination was run into the ground under the stewardship of Fortune Island Holdings. Picture: Tom Lee

Nonetheless, plans to restore the destination to its former glory have already started with the developers willing to pour in a handsome eight-figure sum if they secure the lease.

A leaked letter from Cairns Regional Council Mayor Amy Eden, seen by The Cairns Post, said the island’s rejuvenation would bolster Palm Cove’s economy, worth an estimated $345m annually and supporting around 1,800 local jobs.

Double Island’s facilities have gone to ruin with Cairns tourism leaders eager to see the popular destination returned to its former glory. Picture Emily Barker.

“Double Island is a unique and iconic feature of our coastline and, under Queensland Government management, its revitalisation presents an opportunity to strengthen Cairns’

position as a leading destination within the Great Barrier Reef and Tropical North Queensland region,” Ms Eden said.

“The council looks forward to the outcomes of the Queensland Government’s procurement process and would welcome the opportunity to engage with proponents on development

proposals, including the provision of pre-lodgement advice and feedback.”

Member for Barron River Bree James with Member for Mulgrave Terry James alongside Deputy Premier Jarrod Bleijie speaking at a press conference in Cairns. Picture: Samuel Davis

Further adding to tension within the LNP is Member for Barron River Bree James who, after delivering the bellwether seat in October, has been sidelined during the negotiation process.

Ms James, seen as a future minister within the party, publicly expressed frustration with the lack of information stemming from talks during a press conference in Smithfield last month.

“Every time I see the Minister (Last) I ask him for an update because I’m as impatient and excited as everyone else to find out what the next steps for that project are,” Ms James said.

“It’s commercial in confidence. I haven’t been spoken to about who the operator is.”

Minister for Natural Resources and Mines, Minister for Manufacturing and Minister for Regional and Rural Development Dale Last, parliament Question Time, Brisbane. Picture: Liam Kidston

In a statement on Friday, Mr Last said discussions had now reached an important stage.

“The Crisafulli Government is in exclusive negotiations with a preferred operator who shares our vision to make Double Island a vibrant, sustainable tourism destination once again,” he said.

“Far North Queensland has loudly advocated for the restoration of Double Island, but Labor failed to even come up with a plan during their decade of decline.”

“Bree James has been banging on my door since day dot taking up the fight to restore Double Island, and while negotiations are ongoing, it’s an encouraging sign that real progress is being made.”

Cairns MP Michael Healy. Picture: Brian Cassey

Cairns MP Michael Healy said the state’s negotiations with the Morris Group were the “worst kept secret in Queensland.”

“Everybody knows who it is,” Mr Healy said.

“Why doesn’t the government make the announcement? Why is it taking so long? It’s their own red tape.

“They’ve told everyone that they’re going to be cutting the red tape.”

Cairns leaders hope Double Island can help the tourism sector grow once a new leaseholder is named. Picture: Brendan Radke

Deputy Mayor Brett Olds said the lack of progress on the island had raised concerns within the Far North tourism sector.

“Businesses have been waiting for this island to be brought back to life and they would hate to be let down if something doesn’t go ahead soon,” Mr Olds said.

Double Island Resort in 2006. Picture: Supplied.

The Queensland government sought expressions of interest earlier this year for an experienced tourism operator to transform the island after the site was converted to state-owned freehold land.

Located off the coast of Palm Cove in the city’s northern beaches, the holiday retreat was once a playground for celebrity A-listers including Madonna and Keanu Reeves before falling into disrepair.

But it has been left in ruins by the former leaseholder with the former Labor government stripping Fortune Island Holdings of its lease.

Originally published as Restoration in doubt as Double Island negotiations with major developer stall