Newly obtained documents reveal that the controversial Island Oasis development in Kurrajong Hills could pose a serious evacuation risk in the event of a bushfire, with the NSW Rural Fire Service (RFS) repeatedly warning that the site is unsuitable. The information, released under the Government Information (Public Access) Act (GIPA), shows internal correspondence between the Department of Planning and the RFS raising grave concerns about the ability to safely evacuate large numbers of tourists.

The first opinion, dated 12 June last year, was in response to the developer’s initial request for Secretary’s Environmental Assessment Requirements (SEARs). The RFS assessment was blunt, stating, "It is strongly advised that the scope of the proposal on the subject site must be reconsidered given the constraints relating to evacuation of large number of tourists to a safer location in case of bush fire emergency. Reliance on a shelter-in-place only strategy is not deemed acceptable in achieving compliance with 1.1 Aims and objectives and 1.2 Bush fire protection principles in PBP 2019."

Following this response, the developer, Tony Merhi of Merc Capital, adjusted the plans by reducing the number of cabins and camping sites while maintaining the same infrastructure and project cost. However, the RFS response to the revised SEARs application, dated 21 October last year, remained unchanged. The agency reiterated its initial concerns, stating, "…the concerns from the previous NSW RFS letter dated 12 June 2024 in relation to the suitability of the site are still relevant. Reiterating from the previous advice, the NSW RFS cannot rely on closure of the facility on days of elevated fire danger for compliance with PBP, nor impose this as a condition for approval."

Despite these serious concerns, legal advice obtained by residents has revealed that under the State Significant Development (SSD) process, the developer is not required to seek formal approval from the RFS for a “Bush Fire Safety Authority” under the Section 4.14 of the EP&A Act. It exposes a significant flaw in the legislation and potentially puts lives at risk. Should the project proceed, it would place RFS volunteers at risk in favour of developers, residents say. 

The Island’s Oasis proposal seeks to transform the bushland site into a major tourist destination, featuring 311 permanent cabins, 120 lodge suites, camping and caravan sites, a central clubhouse, six communal kitchens, and various recreational facilities. While the plans include upgrades to Hermitage Road and Bells Line of Road, local residents argue these measures are inadequate given the scale of the project. The proposed access roads cut through crucial wildlife habitat, raising further concerns about environmental destruction.

Tony Merhi’s development activities in Kurrajong have drawn scrutiny, with his son, Bashir Merhi, also pushing for a large, modern gambling venue in Kurrajong Heights. Residents fear the developments are driven more by financial gain than community or environmental considerations. Many remain skeptical of Merhi’s motives, given his previous attempt to rezone the site for a 450-lot residential development, which was unanimously rejected by Council in 2013. At the time, Council concluded the land lacked the necessary infrastructure, environmental capability, and fire safety measures to support such a large-scale project.

A local resident, who obtained the RFS documents and requested anonymity, described the bushfire risks as dire. "This is a death trap," he said, recalling how the 2019 Gospers Mountain fire came within a kilometre of the site. The development may contain up to 1,500 people at any one time. The single steep, narrow and winding access road is shared with an existing housing estate placing those residents at risk along with those on the Oasis site.

 "The developer’s suggestion of an alternative fire trail exit is completely unworkable, as it runs through the Wollemi National Park and private property. In addition the proposed route would likely be towards the direction of any fire front. This alternative route was dismissed by Council in the 2013 housing proposal,” the resident said.

The documents also reveal that the project’s cost estimates rely on the use of lightweight prefabricated materials where possible, adding to concerns about fire resistance. Residents and fire safety experts fear that without intervention, the project could proceed without addressing fundamental safety concerns, leaving thousands of future visitors and local residents at risk in the event of a major bushfire.