Lands Minister Tony Kelly and Mr Stronach met at the Newcastle City Bowling Club site yesterday morning to announce the latest stage of the club site's convoluted history.

Under the terms of an agreement between the parties, Mr Stronach's Stronach Developments is required to have development approval for a new building on the site by March 2011.

Mr Kelly said this would be a single-storey function centre and conference site, together with a restaurant and a cafe where people could visit the park and buy a cup of coffee.

Along the way, Stronach Developments will be required to demolish the building, after obtaining approval from Newcastle City Council, within six months.

Delays in fixing the bowling club and Surf House at Merewether have become high-profile issues in Newcastle.

Mr Kelly did not say what would happen if Mr Stronach did not meet the announced deadlines but said the Government would not sign a lease on the club site until the new building was approved.

Mr Stronach said it was too early to be specific about a design but he promised a low-slung building in keeping with the park's plan of management.

The old building stood on the edge of a steep drop into the park but the new building would be moved farther forward.