From the AFR:
Southbank at heart of $1bn spend
Apr 22
Karina Barrymore
Melbourne's Southbank precinct is to have almost $1billion in new development, including a hotel, restaurants, high-rise residential and retail outlets, as part of a state government proposal to build and fund a new convention centre.
The new developments are planned to surround the $370million convention centre on land owned by the Victorian government west of the city and next to the Docklands precinct.
Premier Steve Bracks revealed yesterday the new precinct would be opened to private developers in a partnership arrangement linked to the construction of the 5000-seat convention centre.
The development offer appears to be designed to reduce the government's financial outlay for construction of the convention centre by offering tenderers the right to develop surrounding land.
The Victorian government plans to build the centre on land next to the existing Melbourne Convention Centre and to offer the adjoining land for private development.
The adjoining land, the former Mazda manufacturing site, was purchased by the government about four years ago for up to $20million.
Its acquisition at the time was justified because it was planned to be used to extend the convention centre, which is colloquially known as Jeff's Shed. But the extension was subsequently delayed.
The extra land surrounding the convention centre and the former Mazda site will now primarily be used for private development ventures, including high-rise hotel and residential projects, adjoining Mirvac's Docklands precinct.
Mr Bracks said yesterday the new convention centre would be the centrepiece of an $800million-plus redevelopment of the surrounding Southbank precinct.
A breakdown of the government's proposal showed the total planned development at the site was almost $900million.
As well as the $370million convention centre, a further $175million will be spent extending the exhibition centre and up to $100million is to be spent redeveloping the old convention centre.
Also, the Melbourne City Council will spend $43million on a new footbridge and other capital works, and at least $200million on the new hotel, residential developments and restaurant precinct.