MYUNA Bay Waterski Club could seek up to $10 million in compensation over the Eraring power station ash dam saga that left it without a home water-skiing base.
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Club members were left flabbergasted and seething when the NSW Office of Sport announced last month it would close the Myuna Bay Sport and Recreation Centre because of concerns raised by Origin Energy about the nearby ash dam in the event of a major earthquake.
The club, which had been based at the centre for about 40 years, was forced to cancel an international tournament midway through its week-long duration when the closure was announced.
Event organiser Neil O'Toole labelled the closure a "knee-jerk reaction" in the days afterwards.
But now, Myuna Bay Waterski Club's David Smith says the cost of finding a new base will likely be in the millions.
"Ten million is not a figure that's too far fetched," Mr Smith told the Newcastle Herald.
"If you think about buying a landholding in the Hunter region that has a lake on it, you could be looking at several million for that.
"Or if you look at buying a landholding and then having to build a lake .... buying the land, digging the lake, constructing a building to house all of our tournaments and equipment, it could run into $5 and $10 million easily."
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While the club did not own land at its former site or Whiteheads Lagoon that it skied on, Mr Smith said the location would be difficult to replace as it was free of other boaters.
"It's very unique in that it provides a venue for world-class competitions," he said.
"If you think about having a jump ramp or a slalom course, you can't just put them out on Lake Macquarie; it's going to be a safety issue.
"The future of the club is certainly in jeopardy without being able to find another site to host us in a secluded location away from the general public."
The club was considered a permanent tenant on the centre's grounds and paid a regular fee to the NSW Office of Sport, which is in discussions with Origin about compensation.
But what form that takes is still up in the air. Origin says it has no intentions of purchasing the land from the government.
"We are continuing discussions with NSW Office of Sport on compensation and alternative measures to address the closure of the Myuna Bay Recreation Centre, including possible relocation to a new facility at Origin's expense," said an Origin spokesperson, who confirmed the company was only compensating the agency, not affected clubs that used the centre.
The Office of Sport said in a statement that negotiations were "underway".
"All costs associated with the closure are being documented and discussed with Origin Energy, including the cost of relocating existing and future clients," it said.
Meanwhile, Lake Macquarie MP Greg Piper says Origin Energy's engineering report that lists the ash dam risk is in the hands of multiple government departments for review.
"I believe that a preliminary review by NSW Public Works suggested it was deficient in some areas, but I'm awaiting a full briefing," he said.
Mr Piper has collected 7000 signatures on a petition he hopes to use to discuss the centre's closure in parliament. He requires 10,000 to do so.