Sport and rec centre finds new home in Morisset psychiatric hospital

The $40-million facility is the promised replacement for the Myuna Bay centre, which was closed suddenly in 2019 over fears the nearby Eraring Power Station ash dam could collapse in an earthquake.

The NSW government announced the centre would be built about a kilometre north of the hospital.

But when it was announced the still-operational hospital would be closed and its 130 patients moved to a new purpose-built facility in Maitland, Lake Macquarie MP Greg Piper knew he'd found the perfect site for the new facility.

"I know people are frustrated with how long this is taking, I certainly am," Mr Piper said.

"I am also willing to take some of the blame for that, because I have constantly been open to finding the best possible site.

"The other sites were good, but none were as remotely good as the site we've now identified."

The new sports centre will be built in the heart of the hospital grounds, near the pre-existing sports fields and the bowling club, which will be incorporated into the facility.

When he flagged the idea with the NSW Office of Sport, Mr Piper could hear the collective eyes roll within the department, which was close to completing a drawn out land transfer process with National Parks for the previous site.

"I'm sure all of them said 'here we go again', but they humoured me and I took them to the site," Mr Piper said.

"You can't come to this site without saying 'wow'. This is one of the best sites with lake access anywhere left in Lake Macquarie.

"It wasn't hard to get people to agree once they saw it."

"It does open up the problem of transferring the land again - from the Department of Health this time - but in the big picture, we want the best possible site and we've got it."

The sports facility will only take up seven hectares of the 520-hectare site, which contains dozens of buildings, many of which date back to the hospital's founding in the early 1900s and are heritage listed.

The current buildings are not expected to be repurposed for the sports centre.

Mr Piper said the Office of Sport was hesitant to take on the responsibility for the heritage buildings, but believes some kind of arrangement can be agreed upon.

"The government will have to deal with it one way or another, they can't walk away and leave the most significant heritage sign in Lake Macquarie to become derelict," he said.

The independent MP has an ally in NSW Premier Chris Minns, who toured the new site during his recent visit to the region.

"The Premier sees the sense in combining the opportunity to preserve the heritage buildings with the recreation facility," Mr Piper said.

"The main building is quite grand and ornate. It overlooks the lake and sits next to a heritage-listed chapel. There could be an opportunity to lease it out as a function centre, under the Office of Sport."

Unlike the Myuna Bay site, there will be no accommodation at the new facility.

"I understand people are upset by that, but times change and there are other places nearby that have dorm accommodation

"Perhaps that could be the next stage of the project. For now, let's just get on with it."