Makris Group’s redevelopment of the North Adelaide Le Cornu site gets the nod
AFTER 26 years — and a marathon eight-hour development approval meeting — the vacant Le Cornu site in North Adelaide is finally set to be redeveloped. See the approved plans
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ADELAIDE’s most infamous eyesore may be a thing of the past after a $200 million luxury residential, retail and hotel development was approved on the former Le Cornu site in North Adelaide.
After a marathon eight-hour meeting, the Development Assessment Commission approved the Makris Group’s proposal to transform the O’Connell site, which has been vacant for 26 years, into a luxury mixed-use residential and commercial precinct.
The development includes eight buildings on the site, with a five-star hotel, a 16-storey apartment tower, a public piazza, unground carpark, commercial spaces, retail stores and upscale restaurants.
The Makris Group says it is in negotiations for Sheraton to manage the 160-room hotel included in the development.
“While there was very strong interest from a number of leading hotel operators from around
the world, we are very confident that the globally renowned Sheraton brand and Starwood
hotel management best suit the quality outcome that we are seeking for North Adelaide and
South Australia,” Makris Group executive chairman Con Makris said.
Mr Makris said negotiations had also started to bring a cinema and high-end food outlets to the development.
“My vision is to make North Adelaide the premium lifestyle destination for the whole of Adelaide,” he said.
Construction is expected to start late next year and be completed in 2019.
The proposal is the latest put forward by the Makris Group, which has been trying to successfully develop the site since the company purchased it in 2001.
But several other developments on the site have fallen over since it became vacant in 1989, including a $40 million shopping centre proposed in the same year and a $22 million retail precinct put forward in 1992.
Attorney-General John Rau said planning reforms brought in by the State Government had made it easier for the site to finally be redeveloped.
“The fact this new project has been possible and that the (more than) 25 years of zero development on the Le Cornu site may finally be coming to an end demonstrates the value of the zoning changes put through by the government in March 2012, and the importance of the design review process,” he said.
But Councillor Anne Moran said she still had doubts about whether the development would proceed, despite it being approved.
“The developer has decided not to go ahead (with building) before even when he has had approval,” she said.
“I’m not totally convinced this time will be any different.”
Mrs Moran said the Makris Group’s was not perfect but it was better than the site remaining vacant.
“I think everyone in North Adelaide is at the point where they just want something built there,” she said.
LE CORNU SITE TIMELINE
April 1989: 1.6ha Le Cornu Furniture store, which had been in the retail family for 134 years, sold for an undisclosed sum to merchant bank Tricontinental (Trikon) and Oberdan family’s Kellyvale Group.
October 1989: Plans approved by Adelaide City Council for a $40 million shopping centre and townhouse development.
February 1990: Kellyvale take full ownership of site after Trikon’s financial collapse.
April 1991: Planning Commission rejects complex despite modified version already approved.
December 1992: Oberdan Group reveal plans for a $22 million retail complex including a major Coles supermarket and 30 speciality shops which replaced its earlier proposal.
May 1993: State Government strips Adelaide City Council of control of site after months of bitter debate.
August 1993: Contentious plans approved by Planning Commission after developers’ appealed rejection a month earlier.
October 1993: State Government gives final approval despite claims from North Adelaide Residents Group, led by Susan Clearihan, now a city councillor, they were not consulted.
November 1993: Residents and eight companies, including Foodland, launch Supreme Court challenge, in a state first.
May 1994: Unprecedented class action dismissed by Justice Trevor Olsson.
October 1994: Appeal dismissed by Full Court of the Supreme Court.
October 1995: Demolition work begins on site’s dilapidated buildings after months of wrangling.
March 1997: State Government announces area will be rezoned from a residential/commercial
precinct to a predominantly commercial area.
June 1997: New $15 million project including group of four boutique cinemas and underground car park proposed by Wallis Theatres and Kellyvale holdings.
December 1997: Mancorp Holdings headed by developers Theo Maras and Bill Manos launch legal appeal against council’s approval, arguing project exceeded building heights. It was later resolved.
March 1998: Oberdan family’s Kellyvale Group sells site to the Wallis Theatres Group.
August 2000: O’Connell St Traders’ Association lodge formal application with the city to establish temporary car park.
November 2001: Makris Group buys site from Wallis Cinemas for an estimated $7 million after council drops bid for land.
January 2005: Makris group unveils $100m luxury complex including seven-star luxury hotel, retail shops, apartments, cinemas, restaurants and a three-level underground carpark.
May 2007: State Government fast tracks plan, takes planning control from Adelaide City Council and gives it major project status.
April 2010: Con Makris describes saga as “the biggest disgrace in Adelaide’s history” as it starts demolition work on site.
August 2010: Makris group wins two-year extension, in which substantial work was to start.
November 2011: Luxury complex plans scrapped because of global financial crisis.
December 2011: Deemed a “catalyst” site under new State Government planning laws meaning it does not have any height restrictions.
July 2012: Billionaire property developer Lang Walker and Mr Makris announce joint venture to develop the site.
January 2013: Mr Makris publicly airs frustration over delays and threatens to develop alone.
June 2013: Mr Walker walks away from joint venture plan.
July 2014: $80 million proposal from Adelaide City Councillors Sandy Wilkinson and Mark Hamilton to build a public square, carpark and luxury apartments on the site, with the council as the developer.
August 2014: Mr Makris claims he will scuttle plans for a Glenelg-to-Kangaroo Island ferry if he fails to win development approval for the site.
October 2014: Issue dominates city elections amid calls for the council to compulsory acquire site.
December 2014: Mr Makris unveils new $200 million, eight-building development.
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