Dunk Island Spit to be leased to new owners with deliverables expected in two years

After years of mishandling, Dunk Island is in the throes of a resurgence with a new leaseholder taking on the languishing Spit, promising infrastructure and enterprise on the idyllic island.

After years in limbo, Dunk Island is in the throes of a resurgence with the languishing Spit finding a new leaseholder.

Following a confidential session during the monthly Cassowary Coast Council meeting, the council’s principal of property and leasing Mark Valente announced the signing of an agreement with the Dunk Island Group to lease The Spit for a period of 30 years, starting on June 1.

Mayor Mark Nolan said the development was a “morale booster” for the region.

“I’ve been on Council to vote on Experience Co and they failed with the Spit, voted for Mayfair and they failed with the lease of the Spit and now we have Dunk Island Group and I just say want to say thank you, thank you, thank you because our community is crying out for this,” he said.

Mr Valente told the meeting the council had taken possession of The Spit in 2021, following a default by the previous lessee.

The Spit is a section of public reserve on the island’s western tip which includes the iconic sand bar and also the jetty and campgrounds.

He said in early 2022 the council decided to retest the market and publicly tendered for a 30-year lease for The Spit, but failed to find a suitable lessee.

Aerial image of couple at Dunk Island (Coonanglebah). Photo: Tourism Tropical North Queensland

In July 2022, the adjoining Dunk Island Resort was acquired by Green Seaweed 1, one of a number of entities referred to as The Dunk Island Group.

“Council began negotiations for an infrastructural agreement with representatives of Dunk Island Group to secure water, power, sewerage services to The Spit during the course of which a possible lease of The Spit reserve to the Dunk Island group was discussed and negotiations have progressed to a point today where we have agreement on all major issues,” he said.

A lease would be signed shortly he said, marking a shift in the fate of the beleaguered island which has faced both nature’s fury with two cyclones in 2006 and 2011 and the debacle that was the failed Mayfair 101 bid to turn the region into a tourism hub.

Annie Cannon-Brookes, wife of Australian billionaire and Atlassian co-founder Mike Cannon-Brookes, acquired Dunk Island for approximately $25 million in July 2022.

The director of the Cannon-Brookes Foundation, Catherine Manuel, is also the director of Green Seaweed 1.

Damaged buildings on Dunk Island resort which has been closed since it was battered by Cylone Yasi and Cyclone Larry. PICTURE: ANNA ROGERS

The Dunk Island Group was to undertake capital works building camping facilities on the existing campsites and a cafe, bar, food and beverage outlet within two years of commencement of lease.

Completion of works was an essential term of the lease, and two years of rent would be waived to allow for this, Mr Valente said.

“Rent is then reviewed annually with CPI and market reviews every five years.”

A security bond of $50,000 was enlisted under the lease where The Dunk Island Group had to contribute a bond of five per cent of capital works to ensure completion of work once it starts.

During the works, public access to camp site and facilities was guaranteed, he said.

“The permitted use is of campground, cafe, bar, amenities block, camp kitchen and other commercial recreation tourism purposes,” Mr Valente said.

“The lessee must keep the amenities block open for use by the public, together with camp kitchen BBQ food and beverage facilities, together with any part of the beach which is situated within the lease Spit boundary.”

Infrastructure services to be provided were potable water, sewerage, electricity services along with regular sand replenishment to specified contour levels.

Path to Wongaling Beach with Dunk Island Water Taxi in distance. Photo: Tourism Tropical North Queensland

“Historically, this has cost council significant funds, they’ve taken over that obligation,” he said.

The fully-funded Mission Beach CBD revitalisation legacy project in combination with the resurgence of Dunk Island would greatly support tourism recovery post pandemic, Cr Nolan said.

Councillor Trudy Tschui said the community would be “excited and relieved” by the possibility of something happening on the Spit while Cr Jeff Baines praised the negotiations team.

Originally published as Dunk Island Spit to be leased to new owners with deliverables expected in two years