The decision is a major turn of events after the crown land site was initially proposed and set aside by the Palaszczuk government for ASF Consortium.
“This is a unique site ... the equivalent to what Central Park is to New York," Queensland's Premier said to local media.
Australian officials said the construction of the five high-rise towers would have increased taxes for locals. “I am not going to do that,” Palaszczuk assured. Instead of the Integrated Resort, the government has decided to develop a new plan for the port area.
The plan, which is expected to take 18 months to complete, will not rule out future development on the southern end of the Spit but will impose a height limit of three storeys.
Chinese-backed casino investors ASF Consortium won preferred proponent status with the Queensland government to negotiate a casino license on the Gold Coast four years ago. After the Government decided to reject its proposal, the company could explore its legal options, including potential compensation from Queensland taxpayers.
Palaszczuk said the casino licence would remain on the Gold Coast but no integrated resort would be allowed on The Spit.
State development minister Anthony Lynham says the government spent $4m on the community consultation process, but believed the expense was “worthwhile”.
The premier said the decision did not rule out a possible future integrated resort development but the deputy premier, Jackie Trad, said any future development would be limited.