A community group has called for action on converting the disused Tomaree Lodge site into an education and tourism centre as the soon-to-be-opened Tomaree Coastal Walk promises to attract thousands more visitors to Port Stephens.
Tomaree Headland Heritage Group welcomed comments last week by Port Stephens MP Kate Washington that the lodge site would not be used for housing.
Spokesperson Peter Clough said on Monday that the group had received "extensive inquiries" about the future of the former disability home, which closed two years ago.
"THHG believes that, following five years of community engagement, education-, culture- and tourism-related activities have been the most supported future uses," he said.
"THHG looks forward to the early identification of a way forward, particularly commencement of the planning process, which of course should embrace the development of a master plan supported by a business case to ensure financial viability as well as the creation of a management model."
He said the government was spending "significant" money on security at the shuttered site while its future remained up in the air.
The NSW Department of Communities and Justice received more than 500 public submissions when it called for feedback on the lodge's future late last year after the Land and Environment Court had dismissed a Worimi Local Aboriginal Land Council claim on the site.
Ms Washington, the Minister for Disability Inclusion, told Parliament last week that she had received a report on the feedback in May but had instructed DCJ to "determine the physical, ecological and heritage constraints" on the site so the government could "meaningfully engage" with the varied community views and ideas put forward.
She said she would publish the report and any other supporting information before the government decided what to do with the site.
Port Stephens mayor Ryan Palmer said he wanted to see the lodge's future resolved.
"I hope we'll see something very soon. The community is obviously very interested," he said.
A National Parks and Wildlife survey showed 200,000 people visited the Tomaree Head summit in 2018, a number Mr Clough said would "substantially increase" when the 20-kilometre coastal walk from Tomaree to Birubi beach opened.
The Newcastle Herald has been told the walk will be officially launched and opened within several weeks.
THHG commissioned a strategic concept plan last year which set out how Tomaree Lodge could be adapted for tourism, cultural and education uses.
"The Tomaree Lodge site has the potential to significantly contribute to the Port Stephens economy and the already large visitation will particularly provide a strong base for achieving financial sustainability and at the same time enhancing the heritage experience," Mr Clough said.
"We've received extensive inquiries on what's next for the Tomaree Lodge site as it has now been vacant for over two years at significant cost."
Tomaree Lodge has been included along with more than 3000 other sites in an ongoing audit of government land which could be used to speed up housing supply, but Ms Washington last week ruled out public or private residential development.
"Tomaree Lodge might be on the list, but it's certainly not on the list for any residential development," she said.