NOBBYS headland will be opened to the public for the first time in more than 150 years following a historic deal between the Newcastle Port Corporation and the NSW Government.
Ownership of the site will be transferred from the port corporation to the Land Property Management Authority, which will spend the next two months assessing the site's safety risks and developing a strategy to open it as quickly as possible.
The NSW Government has not ruled out developing the area, instead saying it would establish a "community trust" to make those decisions.
Port corporation spokesman Keith Powell said yesterday that if a development application for a 46-seat restaurant, takeaway food outlet and seven accommodation suites was granted then it would be transferred to the Land Property Management Authority.
Newcastle City Council received a development application for the $1.2 million project earlier this year.
It had been transferred to the port corporation from previous proponent, Nobbys Lighthouse Consortium.
Heritage activist Doug Lithgow, who fought earlier plans for a restaurant and accommodation being added to the headland, said the site should not be "privatised".
"It's good that it's being opened up to the public but it should be done under the National Parks Act," he said.
"The headland is steeped in history and it's a very important aboriginal site as well.
"The Government can be so blase about heritage and it needs to be protected under an act of Parliament, otherwise you will always be arguing against them."
Restaurateur Neil Slater, who led the consortium, said it was "bitter sweet".
"I think the site is too good a site not to be utilised," he said.
"I am ecstatic that it's moving forward and I will be ecstatic to go up there as a guest.
"Would I be interested in taking over [the restaurant and accommodation] if it is approved? No, certainly not, not a snowflake's chance."
Minister for Lands Tony Kelly said the community trust would manage the headland.
"Jodi [McKay, Minister for the Hunter] has made it clear to me that she believed Nobbys should be owned by the community and accessible to the community," he said.
"I share Jodi's vision for Nobbys and believe it's important we undertake the necessary work to move Nobbys to the next phase of its life."
Mr Kelly said he had asked John Price, the former Member for Maitland, to be the community's representative in an honorary capacity.
"John will work with the [Land Property Management Authority] through establishing the Community Trust, understanding how best to achieve access and developing an initial operational model for Nobbys Headland."
Ms McKay said she had always believed the community should have access.
"The community has made it very clear that they want to be able to walk around Nobbys and experience the history of the site, not just view it from afar," she said.
"I acknowledge the significance of Newcastle Port Corporation's decision and Mr Slater's long battle to open the site as accommodation and a restaurant but it's now time to move on and give Nobbys a new beginning."
Mr Slater's plans were quashed by Federal Environment and Heritage Minister Peter Garrett in 2008.
He said at the time he was concerned about the impact it would have on the heritage values of the lighthouse.
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