The final sale price is yet to be negotiated but is expected to exceed $30 million.
While much of the community concern focused on the ‘vibe’ or scale of the development, the council resolution listed only a handful of broad conditions, namely:
– Inclusion of a contemporary full-line supermarket
– Replacement of 142 at-grade parking spaces available to the public in a basement car park
– Access to the rear of adjoining premises on Carlisle Street
– New public toilets (male, female, accessible)
– New public open space of at least 250 square meters
– Multiple, clearly defined entrances to the new development to provide pedestrian permeability and access
– The retention, conservation, and integration of existing heritage buildings
– Residential development, which must include affordable housing.
The myriad of other issues, including height, design, housing mix, retail mix, and other uses, will be mediated through a ‘Memorandum of Understanding’ where Coles promises to engage with Council and the community before lodging a development application under the Victorian Government’s Development Facilitation Pathway (DFP).
Need for change trumped need for detailed vision
After nearly 20 years of inactivity in a so-called ‘activity center,’ the pressure on the council and both major retailers to invest in change had reached a critical level prompting a simultaneous outpouring of both desperation and dreaming.
The desperation was driven by failed businesses and empty shops, while dreams were fuelled by an inner-city location with great transport, a vibrant community, and a once-thriving unique bagel-belt high street.
There was a growing consensus that it could be so much better. The failure of Woolworths to act on their investment, combined with Coles’ apparent $100 million spending spree to acquire the freehold of the supermarket site and surrounds, only heightened the frustration and anticipation.
Last year’s council election seemed destined to add to the uncertainty, with some candidates calling for a new precinct plan for the area.
To their credit, the new council initiated a program of community engagement regarding Carlisle Street and the the opportunity that Coles provided. This has clearly informed the decision and put both Council and Coles on notice that the community has high expectations.
While the council is not the developer, the driver is Coles with their yet to be named development partner, with the state minister providing the final sign-off. What is happening here can be seen is an exercise in ‘soft power’ by the community through pressure and influence.
For the record, TWiSK has also published a range of opinions about the decision, including those from Better Balaclava (see below), Cr. Buckingham, and Cr. Halliday.
A momentous decision
TWiSK was at the Council meeting and can report that councillors, staff, and the public were aware that this was a momentous decision that would shape many futures.
Moving the resolution to sell the small parcels of land to Coles, Cr. Buckingham said ‘I spend a lot of time on Carlisle Street. I think about it all the time.’
She continued, ‘I’ve spoken with many people in our community about their hopes and fears for Balaclava and Carlisle Street. The people I talked to want to see a street revitalised, with shops reopening, safer streets, more affordable housing, and mixed types of housing. Tonight’s decision is a big step forward in determining Balaclava’s future.’
However, she emphasised that this decision was only about the land sale, not the final details of the plans. ‘It’s about setting up the guardrails to protect the community interest.’
Change of heart from Halliday
Seconding the resolution was the other local Ward councillor, Cr. Justin Halliday.
‘It was a year ago, almost to the week, that others and I staged the first Carlisle Street forum, where we drew the community’s attention to the sale of this land and the associated risks and opportunities,’ he said.
‘At that forum, I said that we shouldn’t sell the land. I felt very strongly, and I still do, that the process we’re in here is not the best process.
‘But I have advocated for that strongly, and that view did not prevail.
‘Since then, we’ve seen best-in-class community consultation. We’ve seen significant movement from Coles regarding the transaction and the legal agreements. We’ve seen a Memorandum of Understanding established. This has addressed many, but not all, of my concerns about the sale. But ultimately, on balance, we need to see the revitalisation of Carlisle Street.’
He added, ‘This is just the start of a process. From here, we’re going to see the designs.
‘We’re going to enter the development phase and hopefully, a wonderful new development that will bring many new residents to Carlisle Street and see the street revitalised.
‘I just need to say here that we will continue to advocate for the residents, traders, and landlords.’
Fifteen years in the decision grind
This decision has been in the making since 2019 and mirrors the decision to sell a neighbouring car park on Camden Street to the adjacent Woolworths for $6.6 million in 2022.
Since 2009, council structure plans for the Carlisle Street precinct have anticipated that the major supermarkets would upgrade their offerings in the area.
The failure of the supermarkets to revitalise their stores has coincided with a decline in retail activity across the precinct.
Assuming the sale goes ahead, the focus will shift to the details of the design and more community engagement.
After Coles finalises its plans, it will be up to the state minister to give the ultimate approval.
With housing a top priority and the site’s proximity to rail and tram services, we can and should expect a significant number of homes. Oh, and a new supermarket alongside a vibrant mix of other retail and services.
But lets pray that both Woollies and Coles don’t decide to build at the same time!
Cautiously optimistic say Better Balaclava lobby
TWiSK asked the Better Balaclava group to provide a comment. Here’s what they had to say in full.
‘Better Balaclava is cautiously optimistic about the decision to sell the remainder of the land in the carpark to Coles, and by extension their future development partner. We will seek clarification on some issues raised in questions during Wednesday’s meeting, but we welcome Council’s commitment to publicly release the final versions of conditions attached to the sale. It is important that the money raised improves the shopping centre and surrounding area.
‘A huge amount of progress has been made since the August 2024 resolution, with further work to be done. A major step forward as part of the sale resolution is the agreement reached for Coles to provide its plans to Council for community consultation, an important gesture of good faith from Coles that we really appreciate.
‘The next steps for Better Balaclava, and our community, will be to remain engaged and participate in the consultation sessions. Carlisle Street now has the opportunity for an excellently designed, high quality development and significant investment, if done well the area we all love can be even better.’
