On 13 September 2005 after reviewing a number of internal studies, the Government endorsed the development of the Townsville Ocean Terminal. It was also announced that negotiations could now commence with TABCORP/Consolidated Properties Group as the preferred developer.

On 7 February 2006 the Government announced approval for the development agreement for the $1 billion Townsville Ocean Terminal project, a joint venture between TABCORP Holdings and Consolidated Properties Group, which was subsequently executed on 10 March 2006.

The Townsville Ocean Terminal will provide:

a dedicated cruise terminal and wharf to attract cruise ships and naval vessels, located on the Western Breakwater, adjacent to the Port of Townsville;

an integrated residential and tourism development for the land surrounding the casino; and

a landscaped residential development, providing public access to the Breakwater and future green areas.

On 28 February 2006, the Government passed the Breakwater Island Casino Agreement Amendment Bill which provides a planning framework for the associated residential and tenure development in the vicinity of the Breakwater Casino.

On 14 June 2006, the Breakwater Island Casino Agreement was executed between the State, Breakwater Island Limited and Jupiters Limited. Prior to this, agreement was reached with Council and the Port regarding infrastructure issues for the surplus casino land.

On 30 June 2006, the development rights and obligations of the ocean terminal and future development area was transferred to City Pacific Ltd.