Negotiations cease on 895 and 903 – 907 Main Road Eltham
Negotiations with developers have ceased on Council-owned land at 895, 903-907 Main Road Eltham.
Market conditions and funding difficulties in the current banking environment have resulted in no feasible outcome.
In 2018, Council informed the community it would test the market to see if a property leader could partner with Council to revitalise the site.
The partnership would need to reflect Eltham’s unique sense of history, and in addition public spaces that could support community uses such as a gallery, public plaza for Anzac day and other major events, markets and concerts were also to be considered.
Council received 14 Expressions of Interest from developers when it first started the process in September 2018. Of those, five were asked to proceed to the Request for Proposal stage.
Changed market conditions including a fall in property prices across the state, tighter lending requirements following the Financial Services Royal Commission and the distance from the CBD, all played a part in the project’s feasibility.
Mayor Karen Egan said Council and the developer were not prepared to continue pursuing development of the sites when it became clear it was not financially viable in the current market conditions.
“We’ve always said that this process was testing the market and no decision on the sites’ future had been made,” Cr Egan said.
Wingrove Ward Councillor Peter Clarke said if the private sector had been able to demonstrate a feasible project that addressed community aspirations and the development criteria, Council would have taken any proposal to the community for consultation and feedback.
“We will now need to address the issues around the existing outdated buildings that no longer meet contemporary service needs or standards and how we can accommodate these services moving forward,” Cr Clarke said.