Judge makes final decision long-term dispute between Townsville City Council and Amaroo on Mandalay unit owners

A Magnetic Island lot owner says she’s worried for renters who will be “displaced” after a judge decided a holiday resort’s units could not be rented long-term.

Amaroo lot owner Sarah Mills and Alan Sheret at Townsville Court House. Picture: Nikita McGuire

A Magnetic Island lot owner says she’s worried for renters who will be “displaced” after a judge decided a holiday resort’s units could not be rented long-term.

A long-term dispute between Townsville City Council and residents of Amaroo on Mandalay, a Magnetic Island holiday resort was settled in the Planning and Environment Court on Thursday, with Judge William Everson determining that long-term tenting and tenancies at Amaroo was an ‘unlawful act’.

The case was taken to trial after one resident refused to accept a deal offered by the council.

Long-term residents who own their units at Amaroo Mandalay have been told they would be able to remain there for the rest of their life or until they wish to sell, but renters living there full-time would have to vacate at the end of their tenancy up to 12 months.

The council filed an application in October 2023 against Amaroo on Mandalay unit owners, stating that the tourist holiday resort does not include permanent residency, with those living there full-time concerned they may be evicted.

The council had previously said following nearly a decade of complaints about people living in the accommodation, which only has approval to operate as a ‘tourist holiday resort’, the council was forced to act, arguing for an order that states the resort should be for short-term use.

The council also argued that the units are not designed for long term stay.

Amaroo lot owner Sarah Mills and Alan Sheret at Townsville Court House. Picture: Nikita McGuire

Judge Everson said renting of the units long-term was not “lawful use”.

He said residents used their patios for long-term storage, adding that was not the “desired amenity” of a resort.

Sarah Mills, who owns a unit on the island and was representing lot owners, spoke during the hearing and said she was still uncertain how long-term residency has been proved as unlawful.

“Today, I would like to see the way that 61-79 Mandalay Avenue has been operating for the last 20 years, I would like to see that maintained,” she said.

Saying the other homeowners and renters were “frightened and uncertain”, Ms Mills said outside the court after the decision was made, that she was “extremely disappointed”.

“The nature of the resort is that it’s an affordable place for people to be,” Ms Mills said.

“The concern is that the renters are now displaced and the property owners were frightened enough to sell preceding this case because they are not in a very good position …”

Vocal spokesman for the Amaroo residents, Alan Sheret, said it was a “big loss” for 15 long-term renters.

Aerial view of Amaroo On Mandalay. Picture: Google Maps.

“Effectively they are out on the street, their home is no more,” he said.

“I feel gutted that an elected representative could put this issue in front of the legal for the council and advocate for this action.”

Acting Mayor Ann-Maree Greaney told the Bulletin in March that the council was “not in the business of evicting people from their homes”.

“You couldn’t trust a word that comes out of the sitting councillor’s mouth with regard to Division 3,” Mr Sheret said.

The resort pool at Amaroo on Mandalay. Picture: Supplied.

He said he had approached Townsville MP Adam Baillie to help renters find alternative accommodation.

“It’s highly unlikely that they’ll be able to stay on the island community because of lack of housing there,” Mr Sheret said.

“These people are really soft targets and the council has taken advantage of that and I think that’s really poor too.”

Mark Fishburn, Tony Green, and Alan Sheret leave the Townsville Courthouse after appearing in the Planning and Environment Court in 2024.

The court heard in September last year that council was seeking to make a ‘favourable’ compromise to 100 long-term residents and that no further action would be taken against those accepting the deal.

One of the residents, Mark Fishburn, did not accept the deal.

Judge Everson said was satisfied “the changes negotiated by Mr Fishburn place each of the respondents in a better position than they were pursuant to the terms of the order they originally negotiated with the council.”

“Accordingly, I am of the view that the order negotiated between the council and Mr Fishburn adequately protects the interests of all respondents and that the making of such an order is appropriate in exercise of my digressions.”

Acting Mayor Ann-Maree Greaney said the planning court had ruled in the council’s favour.

“It’s great to see that the people who want to live in Amaroo can stay there for the rest of their lives,” she said.

“It’s a great outcome for us, we’ve got what we wanted and we wanted to keep those people in their homes. We’re very, very happy for that.”

Originally published as Judge makes final decision long-term dispute between Townsville City Council and Amaroo on Mandalay unit owners