[Pictured in 2019] Excited by the possibilities, Mayor Dick Gross joined Community Panel members Cathy McNicol, Cristina Ceddia, and Trevor White (right), who were photographed during a tour of the Marina onboard the local Coast Guard vessel. Sadly, five years later, the $160M project is in doubt.
Before the end of the 50 plus year St Kilda Marina tenancy, in 2018 a year long Community Panel process was established by the Council to provide community input for the new marina project. The previous tenant and others put in their expression of interest proposal which led to a new tenant, The Australian Marina Development Corporation, AMDC, being successful, commencing in May 2022, nearly 3 years ago.
Their proposal offered a much-needed redevelopment of the ageing rundown marina and the surrounding tenants. Everyone was excited by the prospects of a modern marina and improved community amenity.
Slow (or almost no) progress over three years
However, since AMDC took over the Marina the proposed design and redevelopment have not occurred. Instead, only relatively minor changes to the site have occurred.
Last week, after 3 years, interested parties received an email from the Council that planning and contamination issues are still being discussed with AMDC. If these issues can’t be resolved by 31 March 2025, a new 3-year lease will be available for $1.8M over the 3 years being $0.6M per annum.
On the 31 March 2025, 3 years after signing up, we might know if or if not AMDC has met expectations, timelines and contract obligations?
Much more than a marina
It should be noted that the Service Station, which is part of the Marina lease, is probably leased at over $400K per annum and together with the net income from the RIVA large entertainment complex and other sub tenancies, this income would probably offset the proposed $1.8M rent over the next 3 years. Lease income from the marina and dry boat storage also goes to AMDC.
It is not uncommon for a successful tenderer to seek contract variations after their proposal has been accepted, often called, lease compliance creep. However, the status of the variations AMDC has proposed includes a floating pontoon bar, a private beach, changes to the dry stack complex design, a proposed additional commercial building across the car park at the sea wall and other variations to their original proposal are still being discussed by the Council.
Sunk by contamination?
The CoPP St Kilda Marina Community Consultation panel met throughout 2018 to provide input into the design of the planning brief and their expectations for the tender specification.
Among the many issues raised were the state of the existing infrastructure, the closed fenced nature of the marina, the improved community benefit, the environmental concerns and the site contamination.
The contamination issue was not quantified during the process, but the panel knew of the contamination in the soil infill placed on the site over 50 years ago, the hazardous materials in the buildings and the anticipated contamination in the marina seabed.
Prospective tenders would have done a due diligence report on the conditions of the complex before tendering which should have highlighted these issues.
See Council’s page on the Marina Project
Whistle blowers welcome
If you know more about this story, please contact Greg Day 0418 345 829 for a conversation. You can mail documents to 31 Alma Road, St Kilda 3182. Discretion assured .
