THE State Government is considering a rescue package to resolve the current stalemate at Port Geographe.
The Mail understands the package will enable the developers to settle their outstanding debts with the Westpac Bank, rejuvenate sales of canal blocks and also tackle the seagrass problem that requires an annual cleanup.
An in-principle agreement is being negotiated with the bank, which will need to be approved by State Cabinet.
If ratified, the State Government, through LandCorp, would become the project developer, which would involve around 500 residential blocks becoming available through the bailout.
The stalled project resulted in the developers going into voluntary administration, owing around $100 million to the bank.
If the rescue package eventuates, then LandCorp would be responsible for solving the seagrass problem through the reconfiguration of the groynes and would also address the water quality problem in the canals.
Busselton mayor Ian Stubbs said the situation was extremely complex, a view shared by Vasse MLA and the Minister for Transport Troy Buswell.
"Whilst the studies that the State Government funded in recent years had identified a solution in the form of groyne configuration, there are a number of complex issues associated with Port Geographe that need to be resolved and a major part of that solution will be ensuring the balance of the Port Geographe precinct is developed," Mr Buswell said.
Mayor Ian Stubbs said it was too early to make any comments on Port Geographe, however he gave a hint that a solution was imminent in a blog last month.
He raised questions he had received from residents who had complained about a whole range of issues associated with the Port Geographe development.
"High level consultation and negotiation is taking place between the State Government, City of Busselton, administrators acting on behalf of the previous developers and the bank or banks that are owed monies and hold security over most of the land.
"Until these negotiations are concluded, the important decisions about the long-term future of Port Geographe simply cannot be made."
He said the important decisions that had been referred to him were when would the reconfiguration of the groynes to overcome the sand and weed issue take place and who would meet the cost, and who would complete the development of Port Geographe.
"I believe the above questions will be answered just as soon as the high level negotiations are concluded," he said.
Mayor Stubbs also said he that the high level negotiations he had referred to had been going on for some time and they must be drawing to a conclusion.
"I believe the Port Geographe development is a great development. I know that the groyne issue and the associated weed and sand problems have been extremely damaging to the reputation of Port Geographe.
"Notwithstanding, the canals, the homes that have been built and the boating facilities are of a high standard.
"Given time I would like to think that Port Geographe will be a sought-after address at which to reside."