Freo forced to review revamp
The City of Fremantle has defended its decision to partner with a private developer in the $270 million overhaul of its city centre but acknowledged the deal was at risk if the State Government failed to move the Department of Housing to the port city.
In an unusual move, Fremantle chief executive Graeme Mackenzie yesterday released a statement on the integrity of the Kings Square business plan, including the valuations of city-owned assets.
He also expressed frustration at the Government's failure to commit to the Housing Department's move and revealed the council was planning for "alternative structures" in case it did not happen.
"Sirona Capital has to date invested significant time and energy working through Government processes to obtain that commitment to this project," Mr Mackenzie said.
"If that . . . (or a viable alternative anchor tenant) can't be obtained in the next 12 months, this project in its current structure will fall over.
"This is clearly understood by the city and we will be planning for alternative structures during this time to ensure we're prepared should such a scenario eventuate."
Sirona, the council's Kings Square partner, confirmed yesterday it had taken an optional one-year extension to an agreement with Fremantle that expired this month.
The Fremantle-Sirona deal involves developing the Myer building, Queensgate centre, Queensgate carpark and the Spicer carpark into an office, food, drink and retail precinct.
Sirona, which owns the Myer site, would buy council-owned properties on the condition they are developed and now has until next May to sign up tenants or the contracts lapse.
Residents are concerned about the Kings Square plans.
Mr Mackenzie acknowledged concerns about the deal and its financial assumptions, including whether selling the city's Queensgate building for $6.35 million was too cheap.
He agreed the price would be too low if the building was a "fully functioning and performing asset" but it was about to lose its main tenant Hoyts and any refurbishment would need substantial demolition.
