Jeff Crowe bought the site in 2015 and hopes to open a cafe at the converted old Cinderella castle within three months.

"We're going through the construction certificate at the moment which has been finalised and put out to tender.

"We want people to come have a coffee and a light meal at the castle, which will be an experience in itself.

"We can't wait for the locals and visitors to see everything this place has to offer."

All the buildings at the old theme park have been extensively refurbished including the castle, Snow White's cottage, the church, the witch's house and the glasshouse.

"We're turning it back to its original form but without all the manikins and all the shows that were down here," Mr Crowe said.

"I think it's the most beautiful spot in Port Macquarie."

Read more: Take a trip down memory lane at our once-thriving theme park industry

Mr Crowe also has another development application before the development assessment panel (DAP) for a residential caravan park to be established, where eco cabins will be built on the land.

The site off Parklands Close and Wandella Avenue is zoned R1 General Residential, E2 Environmental Conservation and RE2 Private Recreation under the provisions of Port Macquarie-Hastings LEP 2011.

A social impact statement prepared as a part of the application to develop the land says the proposal will not encroach on the Environmental Conservation zoned land.

However the development application has hit some hurdles.

Following a Port Macquarie-Hastings Council meeting in May, it was recommended CEO Dr Clare Allen would liaise with Member for Port Macquarie Leslie Williams to explore the possibility of the state government purchasing the land to protect koala habitat.

Read more: Council to start conversation with state government about options for Fantasy Glades

However a spokesperson from council said this discussion has not taken place.

The site was also the subject of a 28,000-signature community petition opposing any development.

Shelly Beach Residents Action Group member Sara Phillips said it's urgent council move quickly to protect core koala habitat, especially on properties such as the proposed caravan park.

"Council states in their Koala Recovery Strategy that habitat loss is the core reason for the decline in our local koala population, yet we are not seeing enough regulations in place to protect this."

Mr Crowe said the development will not destroy koala habitat. The cabins are proposed to be located on the north part of the land.

"It's only a very small part of the land that we own here on the five acres," Mr Crowe said.

"We're only developing half an acre.

"It's all about keeping the environment safe and we're going to have beautiful eco cabins available.

"It's open to people who want to stay in the cabins and the general public.

If a decision is not reached by the DAP, the development application will go before council for determination.

"Council has run a very tight ship and so do we," Mr Crowe said.

"We are very big in protecting the environment as much as possible."

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