Sensational-Adelaide.com

Le Cornu site on hold

by Adam Todd

THE economic downturn has delayed the former Le Cornu site development - prolonging the 20-year saga on O’Connell St - although developer the Makris Group says the project is still going ahead.

More than nine months have passed since the State Government granted development approval for a $150 million, six-storey residential and retail complex. However, there has been no change at the North Adelaide site, which has sat vacant since 1989.

The first stage of the development, the demolition of three buildings at the fringe a Thai restaurant, Cafe Paesano and the BankSA building has not yet happened.

Makris Group CEO John Blunt told the City Messenger this week he expected the demolitions to happen later this year.

“Now all the tenants have vacated, we’re looking at ‘soon’ for the demolition, but we haven’t quite tidied all that up yet,” he said.

Mr Blunt conceded the project had been delayed by the global financial crisis.

“We always had a couple of years to get it going anyway. Realistically, I suppose you’re a little more cautious in the current environment.”

Mr Blunt said the residential part of the project would not be released onto the market until at least next year, with construction to start once sales thresholds had been achieved, likely mid-2010.

Construction must start by September 2010 under the terms of the development approval.

“We’re aiming to launch the sales campaign at a time where we think things will be slightly improved from where they were six months ago.

“We’ve got other projects on the go and we probably want to make sure they’re out of the way so we can fully dedicate ourselves to it anyway.”

The project was granted major project status in May 2007, in a move the State Government said would fast-track development on the site.

At the time, Premier Mike Rann said: “This site has a long history of development inactivity, and stands as a testament to the failure of successive City Councils to deliver quality development on this site for the local community.”

Yet North Adelaide Society chairman Ed Briedis said the major project status had failed to fast-track the development.

“It’s ironic that everything was supposed to be fast-tracked here we are nothing’s happening, so what was all the rush about?

“It was portrayed as being a super-big deal, worthy of having the government involved directly.

“Now we’re still in the same boat and the longer it goes on, the easier it is to point out the developers are as guilty of nothing happening there as anyone else.”

Planning Minister Paul Holloway said he was confident the development would proceed.

“It is understandable if there is a delay in proceeding with work due to the extreme difficulty businesses currently face in raising funds due to the global financial crisis.”

From The City Messenger:

Le Cornu halt bid

by Adam Todd

ADELAIDE City Council will try to halt demolition of three remaining buildings at the fringe of the old Le Cornu site at North Adelaide.

Less than a week after coming under fire from business leaders and residents for being too small-minded over a decision to block a 13-storey CBD building because it would be “too tall”, city councillors are at it again.

This time the council is concerned premature demolition of the remaining three buildings on the old Le Cornu site which has been largely vacant for 20 years will leave an even bigger empty hole on O’Connell St.

The council will write to the State Government asking it to reject a demolition application submitted by developer Makris Group last month, until it is ready to build the $150 million, six-storey residential and retail complex on the site in 2010.

Property Council of Australia state executive director Nathan Paine said the decision was bad for development and the council had its priorities wrong.

“What we need ... is a council that’s promoting development, not trying to put a glass box around Adelaide and closing it off for any future growth,” he said.

“Anything which reduces the likelihood of development in the city during the financial crisis should be seen as a negative.”

Business SA CEO Peter Vaughan blasted the council for halting demolition.

“It’s clear the council’s track form on this matter is they opposed what was proposed for the Le Cornu site and that’s why the government in desparation took it out of their hands,” he said.

“This smacks of an attempt to just hold-up the process for the sake of a bit of a dog in the manger attitude.

“That whole Le Cornu site is the greatest eyesore and greatest embarrassement to Adelaide and anything that can be done to move on that block is to be welcomed.”

The State Government granted conditional development approval in September last year.

However, the development has been slowed by the economic downturn, and Makris says construction may not start until mid-2010.

The first stage is the demolition of three buildings a Thai restaurant, Cafe Paesano and a BankSA building.

Cr Sandy Wilkinson, who moved the motion at Monday night’s, June 29, council meeting, said it would be a mistake to demolish the buildings too early.

“It’s bad enough having the rest of the site as a cleared vacant site. It would compound the mistake that was made years ago to demolish the rest of the buildings on the site,” he said.

“The Le Cornu site doesn’t look bad at all when seen from the intersection of Tynte St because those buildings are still there, it looks terrible from the corner of Archer St because the buildings have been demolished there.”

Makris Group did not respond to the City Messenger’s enquiries before presstime.

Mr Makris this week hit back, expressing the opinion that Ms Moran was "the biggest liability Adelaide has at the moment".

Harbo takes swipe at SA’s richest developer

LORD Mayor Michael Harbison has called on the state’s richest developer Con Makris to “show some courage” and get cracking on transforming North Adelaide’s vacant LeCornu site.

But Mr Makris has dismissed the pressure, saying he’s “working like a lizard drinking” to ensure the O’Connell St development is “like nothing Adelaide has ever seen before”.

Mr Harbison last week questioned why construction had not begun on the six-storey retail and apartment complex, 16 months after the State Government approved development of the long-vacant site.

“The State Government gave this project a green light and still nothing has been done,” Mr Harbison told the City North Messenger.

“You (the Makris Group) have got the approval, now show some courage and get on with it.”

Mr Makris last week could not provide a start date for building work.

However, he was certain the project would go ahead now he had a verbal commitment from"four or five” major retailers.

“There are a lot of people who try to spread rumours because they want us to do something quick and do something very cheaply,” Mr Makris said in response to Mr Harbison.

“But we are not going to do something like that.

“We are going to do it in our time and ensure that it is nothing like Adelaide has ever seen before.”

He said security parking and high-end fashion shops would be among the features of the new complex.

Mr Makris brought the site, which has been empty since 1989, from cinema mogul Bob Wallis in 2001.

He also owns Holdfast Shores Marina at Glenelg and recently bought a $100 million shopping centre in Endeavor Hills, Melbourne.

http://city-messenger.whereilive.com.au ... developer/