Negotiations to return a parcel of land to community ownership, overlapping the Mambo Wetlands, have stagnated more than a year after it sold at auction “by mistake”.
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Property developer Paul Unicomb bought the six hectare site from the Department of Education last June, among howls that it should be preserved for an at-risk koala population.
The Parliamentary Secretary for the Hunter Scot MacDonald said the sale had been a mistake – the result of miscommunication over the land’s environmental value – which prompted discussion about a buyback from the aged care developer.
Mr MacDonald said the government had heard nothing from Mr Unicomb since last year.
"We've made it very clear to the developer [Mr Uniomb] that the ball is in his court," he said.
"We remain open to discussions with the owner but as Parliamentary Secretary I have to say the prospects for a buyback are somewhat limited."
Mr MacDonald said the government had a long list of properties it wished to buy each year but only limited funds to do so.
The other challenge was the "fragmented nature" of the land which "didn't tick a lot of environmental boxes".
"There are hurdles to overcome with a buyback," Mr MacDonald said.
"I'll continue to do what I can and what I think I should do."
A year on from the sale Mr Unicomb is said to have grown frustrated with the process and wished to push ahead with a development on the site.
“I know the developer is talking to council but I’m told there’s been no development application lodged,” Mr MacDonald said.
“The [strict] requirements for what can happen with the land haven’t changed.”
Port Stephens MP Kate Washington said there's no time to waste, with potential for the site to be developed.
“If we don’t act now it will be too late,” Ms Washington said.
“Paul has [still] indicated that he would be interested in that land being returned to the community, be it through Port Stephens Council or the state government.”
The site is zoned E2 which restricts what development might be allowed.
Forming a rise, beside the wetlands, koalas are often seen on the land and conversations say it is even a breeding site.
Mr Unicomb has declined to speak with Fairfax about the land. But he has spoken to Ms Washington, even though she couldn’t confirm what those development plans might be.
“There are obviously [development] constraints on the site,” she said.
“He’s an aged care developer but what he plans to do, I don’t know.
“Paul’s waiting for the call, Scot’s got to pick up the phone and make the call.”
Ms Washington said it sounded like Mr MacDonald might have grown cold feet on the buyback.
“If he’s even considering backpedaling on the buyback of this environmentally important land, it will be an outrage,” she said.
“If a [development application] is lodged the community will certainly be outraged.”
Talk that the government might not have the money to buy back the land didn’t wash with Ms Washington.
“They’ve been paid for the sale, of course they’ve got the money,” she said.
“This is one they’ve sold, they’ve got the money. This shouldn’t join a list of property the government might or might not want to buy back one day.”
The property was listed through the Newcastle offices of Knight Frank for online auction.
At digital hammer fall it went to PBU Nominees, of which Mr Unicomb is the sole director, for $250,000, well above the $55,000 reserve.
