Rydges Newcastle owner Jerry Schwartz wants to transform an area of foreshore into a ship berth capable of hosting vessels similar to those on display at the Australian Maritime Museum at Sydney's Darling Harbour.
He wants the MV Steve Irwin, currently berthed at Carrington, to be first vessel to make use of the City of Newcastle-owned 50 metre stretch of waterfront immediately to the west of his hotel.
The vessel, which was once the flagship of the conservation group Sea Shepherd, was acquired by Ship4Good founder Kerrie Goodall in 2019.
It has been berthed at Carrington since May 2022.
Ms Goodall secured $315,000 funding from the NSW Government last year to moor the ship, which features a museum and event space, at a Port of Newcastle owned site at Carrington.
However, Port of Newcastle recently withdrew its support for the project following commercial interest in the site, resulting in Ms Goodall approaching City of Newcastle about the possibility of it being relocated to Honeysuckle in the area in front of the dining precinct.
Dr Schwartz, who has taken up the cause, envisages other noteworthy vessels could also be berthed at Honeysuckle in the future.
"My mandate is to provide experiences," Dr Schwartz, who is also undertaking the restoration of the former Newcastle Post Office, said.
"Newcastle is not a boring city, it is progressive. We should not let such opportunities get away."
But the plan has encountered myriad challenges.
City of Newcastle advised that, given the Steve Irwin's size, more than $500,000 worth of work would have to be done to make the wharf strong enough to absorb the ship's 900 tonnes.
"The size of the Steve Irwin is also so large that it would encroach by many metres into the adjacent area where other smaller boats are currently moored as well as into the harbour, which is managed by Transport for NSW. We have looked into ways of overcoming these obstacles, however it's simply not feasible given the Steve Irwin needs to move from its current location at Thales by the end of the month," a council spokesman said.
Dr Schwartz has offered to buy or lease the site and personally invest in its upgrade in order to realise the project.
This could only be achieved through a public tender process.
Further, under a 2017 maintenance deed between the state government and the council, any works to the seawalls would automatically transfer responsibility for the care of all seawalls to ratepayers.
"This is something that can potentially be worked through over time but there are many steps that first need to be addressed, including the subdivision of the lot that runs along Honeysuckle, as well as an approved development application and a public tender process," the council spokesman said.
"Complicating matters further, the NSW government is currently looking to transfer responsibility for maintaining the harbour seawalls from one state agency to another."
Hunter Central Coast Development Corporation (HCCDC) did not respond to questions about Dr Shwartz's proposal.
Dr Schwartz said on Tuesday that he was speaking with Destination NSW about possible ways to break the impasse.
He is also seeking to negotiate a lease agreement with HCCDC for the three finger wharves adjacent to the seawall.
He wants to use the finger wharves to restore a seaplane service between Newcastle Harbour and Rose Bay.