Plans for a $160 million development around St Kilda Marina have been abandoned as the council signs a 3.5-year holding pattern lease.
In 2020, the council signed a 50-year lease arrangement with the Australian Marina Development Corporation (AMDC) to deliver and manage a $160 million upgrade to St Kilda Marina and its surroundings.
The project was to cover a vast footprint from the St Kilda Beacon, Marine Parade frontage, the service station, adjoining car parks, and the foreshore back to the beacon—spanning 8 hectares (80,000 m²).
In the first years, the AMDC was to deliver an impressive list of improvements, but very little was done, and much of it never started.
In February 2025, the council issued ADMC a ‘get out’ deadline of March 31 and offered a holding pattern lease to keep the marina functioning until a new plan could be devised.
Embarrassing is one word to describe this saga
This project started in 2018 with the establishment of the St Kilda Marina Project Community Panel, a group of about thirty residents and others to devise a vision for the site. The following video was delivered with their report in December 2018.
Despite appointing a developer in 2020, progress on the site has been hard to spot. Even the marina website has changed very little and still carries the fingerprints of the previous operators.
Website remains virtually unchanged in 5 years
Yet the council has spent an undisclosed sum on matters related to the marina.
Reluctant Communicators
Both the council and the ADMC are very reluctant to communicate about progress or lack thereof.
ADMC has failed to respond to repeated requests from TWiSK. The council has provided the bare minimum of communication to the community. Even after the new holding pattern lease began on April 1, it took two requests to get a response before the end of that week.
They posted this statement on their website on April 4:
“The redevelopment of St Kilda Marina continues to move forward with contingency measures in place.
“Amid several economic challenges, and despite the council’s efforts to find a way forward, the Australian Marina Development Corporation (AMDC) will not be proceeding with the redevelopment of St Kilda Marina.
“Our council entered into a long-term lease with AMDC in 2020 to redevelop the marina. Since then, there have been changes in the broader economy, significant rises in construction costs, and continued uncertainty with historical soil contamination across the site, despite the council’s willingness to increase its contribution to managing the contamination.
“Despite this extra contribution and numerous extensions of time, AMDC did not recommit to the redevelopment when the final extension period expired at the end of March.
“As a result, our council has implemented a contingency plan to ensure the marina remains operational. This includes a short-term, 3.5-year ‘interim’ lease with AMDC, which began on April 1, 2025. Under this arrangement, the council will receive approximately $1.8 million in rent over the lease term, allowing the marina to continue operations while the council works towards a longer-term solution.”
Big Questions Remain
Will the council conduct an independent review of this process, including the terms of the interim lease?
Will the council detail to the community the costs incurred by ratepayers to progress to this point?
But the biggest question may be more existential:
Despite the hype, despite the promised investment, despite the location, and despite the massive footprint, why can’t TWiSK find anyone who cares about this failure?
This project has sunk without a trace, and nobody seems to care.
An Invitation to a Wake
TWiSK would like to hear from any members of the St Kilda Marina Project Community Panel who would like to participate in a debrief about the process.
We’ll provide a venue, some seafood or alike, and some suitable refreshments, and in return, you can give your feedback off the record—Chatham House Rules.
Email Greg Day or call 0418 345 829. If you want to remain anonymous, mail your contribution to 31 Alma Road, St Kilda 3182.
