the developer had to meet, including rehabilitation insurance to cover the rehabilitation of the environment should the development not proceed. At around the same time, the Townsville City Council, originally opposed to the development, rezoned the Bright Point area for tourist usage and requested state government ministerial rezoning for the entire development. The Townsville City Council further approved the construction of a hotel and unit development on the Bright Point headland which also allowed the headland to be quarried for rubble for the harbor breakwater under the pretext of preparing the site for the development. Major construction works started in August 1989, despite major objection from local residents and environmental groups. The following year saw a number of court cases and tribunals held in opposition to the project, but none of these halted construction. It was later alleged that the developer made an unrecorded donation to Townsville Mayor Tony Mooney's election campaign. Further improprieties were suggested between Townsville City Council employees and one of the judges overseeing a case appealing the development. It was also alleged that the developer offered a bribe to GBRMPA during its deliberations some years earlier. In 1990, one of the main lenders for the project collapsed, followed by one of the major stakeholders in the project, Pacific Properties. However, work continued to accelerate until July 1990, when the dredge being used on the project sank, followed shortly by the collapse of the Magnetic Keys Consortium. It was then revealed that rehabilitation insurance had not been obtained by the developer, and the development was surrendered to the state government. In 1995, a number of proposals were raised to complete the development. None proceeded. In 1998, these proposals were revised to reduce the number of lots from 88 to 40 and more than halve the occupancy from 1328 to 638. With some minor alterations, this was the proposal which was finally agreed. In 2003, the new ferry terminal began operations. The terminal contains a small retail area and is next to bus stops and car parking. At the , Nelly Bay had a population of 1,055. In the , Nelly Bay had a population of 1,196 people. Transport Nelly Bay is home to Magnetic Island's largest infrastructure development, Magnetic Harbour, also known as Nelly Bay Harbour. The development consists of a new ferry and barge terminal, with an emergency services helipad, retail services, a marina and multi-storey