The contentious Point Grey marina development has been put on hold, with Shire of Murray councillors asking for further financial and environmental documentation before voting on stage one.
Shire of Murray councillors were presented with a recommendation to approve stage one of the development, at a council meeting on April 3.
There were 23 submissions against the proposal.
Developers Point Grey Development Company Pty Ltd and Tian An Australia Limited are behind the project, which proposes to build a 300-berth marina with tourism and recreational facilities on the western side of the Point Grey peninsula.
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But, Shire of Murray president David Bolt foreshadowed an alternate motion, welcoming a new application once the proponent provided relevant documentation, including management and environmental plans.
"From my perspective, I consider the project, as a whole, high risk from an environmental standpoint," he said.
Who will be responsible to rehabilitate the estuary, if something goes wrong?
- Shire of Murray president David Bolt
"Who will be responsible to rehabilitate the estuary, if something goes wrong?
"We're acting irresponsibly if we don't consider the project in its entirety.
"We will be living with this outcome for a long time. We want to ensure the best outcome for the community, environment and Shire."
The alternate motion was carried 5-1, with Councillor Brenda Beacham rejecting the motion.
In question time, community member Bob Patterson asked council if they were sure the developers could finance the project in its entirety.
Council deferred the question to Tian An Australia Limited state manager Andrew Hall, who said "Point Grey is in capable hands".
Mr Hall said the marina component was "essential" for the project to succeed.
The project would require the construction of a 2.5 kilometre navigation channel across the Harvey Estuary.
Mandurah Licenced Fisherman Association representative Megan Watts asked councillors to consider if commercial fishermen would lose income from the environmental impact of the marina.
Peel Harvey Catchment Council board member Paddi Creevey asked how the Shire would ensure ratepayers would not bear future dredging maintenance costs.
Mr Hall reminded the council that Environment Minister Stephen Dawson sent the proposal back to the Environmental Protection Authority (EPA) last year for further assessment - which resulted in no new concerns.
The first part of the project does not require consideration by the Metro-South West Joint Development Assessment Panel as the cost is less than the required $10 million.