Organisers of the Flatrock Festival of Surfing were devastated when told by Newcastle City Council last week that they would not be able to hold their event at the Cowrie Hole off Shortland Esplanade because of preparations for the Supercars race in the area.

The organisers received a letter from the council stating they were “unfortunately not able to take bookings at Newcastle Beach and surrounding areas” between April 26 and December 31 “as this area will be a construction zone during this time”.

“The works will impact on the foreshore, Nobbys Beach and Newcastle Beach, back to Watt Street and up to Ordanance Street,” the correspondence from council stated.

Flatrock – which was held for the first time in 2016 – was due to be held on April 29, only a few days after the construction works begin, and it appears organisers may have been given a reprieve. 

Newcastle City Council did not respond to questions about the letter before deadline on Wednesday, but shortly after the Newcastle Herald inquired about the decision festival organisers were contacted to say they could hold the competition. 

The Herald understands the council made the decision to allow the event to go ahead because the surf festival was so close to the works period.

John Bisegna, from the East End Boardriders group, said he was “relieved” by the change of heart.

“The council initially said they’d work with us to find a new location, but you can’t have the Flatrock surf festival somewhere else, because it’s a different surf break, it becomes the Merewether surf festival or wherever,” he said.

Despite the decision, the letter raises questions about other events slated to be held in Newcastle for eight months during 2017.

A number of other events including the Destination NSW sponsored Newcastle Supermoto race – are held in the same precinct.

It will also reignite debate about access to the Newcastle foreshore in the lead up to the race. The council has previously said beaches will be accessible “as usual”, and that no decisions had been made about road closures.

On Tuesday tourism minister Adam Marshall said in a speech in parliament that “any suggestion that the public will be prevented from using Newcastle’s finest beaches and public areas is not correct and couldn’t be further from the truth”.

It comes after the Herald reported Supercars Australia would develop a heritage plan before the event. 

The race – which enjoys the support of both the state government and Newcastle council – has become increasingly controversial among some East End residents since it was announced last year.

On Tuesday the government introduced a bill into parliament that will see the race officially moved from its former home in Homebush to Newcastle.