One of Melbourne's most iconic sites is being transformed, and the vision for the Jam Factory is bolder than ever.
Council has approved the latest updates to Stage 3 of the Jam Factory redevelopment at yesterday's meeting, unlocking a major milestone for Chapel Street and accelerating the momentum of Council's $4.3 million Chapel Street Precinct Improvement Plan.
The revitalised Jam Factory will deliver:
- Over 880 new apartments, helping address housing supply in one of Melbourne's most connected suburbs
- A six-star hotel, bringing world-class hospitality and prestige to the heart of Chapel Street
- A reimagined Village Cinemas complex, meeting strong local demand for quality cinema experiences
- More than 9,000sqm of retail space and nearly 8,000sqm of offices
- A redesigned Town Square, increasing public open space and sunlight
- Safer, more vibrant pedestrian laneways, and vastly improved street activation
- Preservation of the heritage chimney, which will form a striking centrepiece in the new precinct
Mayor Cr Melina Sehr said the redevelopment is a once-in-a-generation opportunity for Chapel Street.
"The Jam Factory is part of Chapel Street's story, and this redevelopment will ensure it plays a leading role in its future," said Cr Sehr.
"We're delivering housing, hospitality, jobs and public space all in one landmark project. And importantly, we're doing it while preserving what makes this site iconic, the red brick façade and the historic chimney that locals love."
The development will reinstate a historic network of laneways and provide better connections to the chimney.
Cr Sehr said the redevelopment builds on Council's strategic commitment to the precinct.
"Through our Chapel Street Precinct Improvement Plan, we're investing in safety, amenity and public space. This project brings the private sector to the table and shows that confidence in Chapel Street is strong."
The development includes public access improvements, new pedestrian connections, laneway upgrades, and a better-integrated Town Square – increasing in size from previous designs and offering stronger visual links to the retained heritage features.
Importantly, revised designs respond to community and technical feedback to improve building separation, minimise overshadowing, and ensure the proposal delivers high quality amenity for future residents.
Traffic impacts are expected to be manageable, with a significant reduction in forecast peak-hour vehicle movements compared to earlier iterations.
Council acknowledges that any major redevelopment brings periods of disruption, and is working closely with developers, residents and businesses to carefully manage construction activity.
"We understand this is a significant change for the area, and we're ensuring residents are heard," said Cr Sehr.
"But what's coming is worth it. This is a bold, beautiful redevelopment that will bring new life to Chapel Street and secure its future as a vibrant, thriving destination."
Construction on Stage 1 has commenced, with Stages 2 and 3 expected to follow subject to Council approval and permit conditions.
