Council said the proposed site for the facility was chosen to mitigate the loss of open space as it was set back from the water's edge and maintained access to harbour margins.
And an observational study of this area of Marine Park conducted in 2021 confirmed that the area proposed to site the facility is underutilised.
In 2018, the council consulted with the public on a similar proposal for the land. However, that proposal sought to revoke the reserve status rather than reclassify it.
Reclassifying the land maintains the protections under the Reserves Act 1977 and would not impact the council's ownership of the site.
Once the reclassification is complete, entities demonstrating the capability to establish and operate a facility will be able to apply to lease the land through a tender process managed by council. This was expected to happen later this year.