The NSW government has unveiled its long-term plans for Tomaree Lodge.
The government released its Tomaree Lodge master plan on Monday, setting out its vision for the historic Shoal Bay site.
It's a world away from the high-rise casino and resort once floated for the headland.
The new plans are centred on heritage protection, cultural storytelling and low-key community use.
The master plan accompanies a $4.6 million NSW government investment in priority works, with a Department of Communities and Justice delivery plan now mapping out how that money will be spent over the next two years.
Port Stephens MP Kate Washington said the master plan gave the iconic Port Stephens site focus and clarity moving forward.
"This is a really treasured site for the people of Port Stephens and visitors to our place," she said.
"The Worimi have had a connection with this place for thousands of years, we've got a remarkable war history and we've got the stories of people with disability who were forced to call this place home for some time.
"This master plan provides a roadmap for the future of Tomaree Lodge, to turn this much-loved site into an iconic destination for everyone to enjoy," Ms Washington said.
"But we want to make sure that the past is acknowledged, remembered and respected so this place can be enjoyed for generations to come."
Rather than new large-scale buildings, the master plan organises the site into a series of low-key precincts built around reuse of the existing cottages and halls.
Plans include a new "welcome hub" with information and education displays near the site entrance.
It also includes a waterside town square for markets and community events, restoration of the seawall and foreshore, and the removal of several dilapidated buildings including the old jetty and decommissioned swimming pool.
It also includes a long-flagged option to one day reinstate the site's ocean baths.
The master plan also recommends the site be formally explored as a "Site of Conscience", a way of acknowledging Tomaree Lodge's past role in the institutionalisation of people with disability, in consultation with former residents and their families.
Tomaree Lodge's weatherboard cottages were built in 1942 as an army and RAAF camp supporting Fort Tomaree's coastal defences guarding the entrance to Port Stephens.
After the war, the buildings were repurposed for patient respite care.
From 1985 the site operated as long-term accommodation for people with disability, eventually becoming a large residential centre in 2001.
The last residents moved out in May 2021 as the state wound up its remaining large residential centres in favour of community-based housing under the NDIS.
In 2012, with closure of the lodge looming, then Port Stephens mayor Bruce MacKenzie ignited a public storm by suggesting the eight-hectare waterfront site could host a casino, a five-star multi-storey resort and a helicopter pad.
The idea drew immediate backlash from residents who demanded it stay in public hands.
In the years since, community groups have floated a string of alternative visions for the site.
Mooted options have included an aquarium and marine research centre, a war history and heritage museum, an arts and cultural hub, and an education and tourism precinct.
A 2022 Land and Environment Court decision dismissing a native title claim by the Worimi Local Aboriginal Land Council cleared the way for the state to confirm the site would remain in public ownership.
The site is zoned C2 Environmental Conservation, a designation that rules out large-scale commercial development such as hotels, casinos, or residential towers but permits eco-tourism, education and environmental uses.
Under the delivery plan, over 25 projects have already been completed at Tomaree Lodge.
They include repairs to the foreshore walk, refurbishment of recreational areas, a new information centre, 30 new CCTV cameras, new public water stations, building upgrades, and the removal of hazardous materials.
Department of Communities and Justice secretary Michael Tidball said the immediate focus was on getting the basics right.
"The delivery plan focuses on the fundamentals - making the site safe, conserving heritage, upgrading ageing infrastructure and improving amenities - so Tomaree Lodge can be progressively opened up for community use," Mr Tidball said.
