Reflections Holidays has withdrawn from the plan to provide visitor accommodation at the Walka Water Works site, due to the costly and lengthy asbestos remediation process.
The decision comes after Maitland City Council decided to prioritise the asbestos removal and commit the entirety of a $10-million tourism grant towards accelerating the process.
The deal would have seen 40 powered camping and RV sites, 10 eco-cabins and 12 glamping tents, as well as amenities, a new access road and the re-introduction of weddings.
In 2022, the council, Reflections Holidays and Crown Lands partnered to pursue funding opportunities for the development of Walka Water Works into a visitor attraction as outlined in Maitland's Destination Management Plan.
The partnership was successful in securing $10 million in funding from the Regional Tourism Activation Fund.
However, due to the extensive asbestos remediation work required at the site, the council made the decision in January to request a reallocation of those funds to prioritise remediation over development in the near future.
Reflections Holiday chief executive officer Nick Baker said the decision to withdraw from the partnership reflected the current status of progress and council's priorities.
"We understand the focus and priority for council for the next few years will be on remediation of the site before they are able to move towards establishing their vision for this significant visitor attraction," Mr Baker said.
"As a profit for purpose organisation, with a commitment to quadruple bottom line outcomes, Reflections Holidays would have provided a great outcome for nature-based holiday accommodation at Walka Water Works, while attracting new visitors to spend their money at local businesses," said Mr Baker.
"Reflections Holidays wishes Maitland City Council every success with obtaining grants for the remediation of such a valuable site," said Mr Baker.
It's understood the $10 million may not be enough to complete the entire remediation.
Maitland City Council general manager Jeff Smith said discussions were continuing with the NSW Government, who own the site, to identify funding opportunities for the remediation works.
"Reflections Holidays has contributed significantly to the project to date, and I very much appreciate their efforts and understand their decision," said Mr Smith.
"Maitland City Council's vision for overnight accommodation options at Walka Water Works has not been abandoned.
"We know the community's priority remains the reopening of currently closed spaces on the site. We look forward to a future conversation about the enhanced uses of the site once remediation is underway."
Save Walka welcome decision
A group of residents opposing the plan to establish a caravan park at Walka Water Works called the decision a "significant victory" for local residents and environmental advocates.
Save Walka Community Alliance have concerns about the project, citing environmental conservation, increased traffic congestion and preserving natural green spaces.
"This entire project has been mismanaged by Maitland City Council, a debacle from start to finish," Save Walka lead campaigner Rachael King said.
"From the moment of the initial announcement, our community had to push and push for transparency and consultation. Millions of dollars of investment in our community were on the table, and through poor governance it appears it has now been a missed opportunity."
With the withdrawal of Reflections, the group wants the council to explore alternative solutions that "uphold the values of environmental sustainability and responsible development".
