Proposed hotel and second office tower at redeveloped Festival Plaza rejected

Proposals for a hotel and another office tower on the $600 million Festival Plaza redevelopment have been rejected by the State Government during another revision of long-awaited final plans for the prime CBD site.

• Adelaide’s Festival Square carpark project zooms ahead
• The Riverbank Precinct is transforming day by day
• Initial work starts on Walker Corp’s $500m Festival Plaza

Proposals for a hotel and second office tower at the $600 million Festival Plaza redevelopment have been rejected by the State Government during another revision of long-awaited final plans for the prime CBD site.

READ BELOW: what they said

In drawn-out negotiations, former Liberal major projects tsar Roger Cook has quit a State Government-appointed role spearheading development in the Riverbank precinct, after Plaza designs he considered superior were also rebuffed by the Government.

Infrastructure Minister Stephan Knoll confirmed the plans were being revised, declaring the Government’s job was to “stick up for all South Australians who should be able to come and enjoy the Festival Plaza as a free public space”.

Sydney property tycoon Lang Walker’s approved plan includes a 23-storey office tower between the Adelaide Casino and Parliament House, an underground carpark and a 4000sq m premium retail and entertainment precinct — the latter within a three-level complex fronting the Plaza.

Roger Cook

Infrastructure Minister Stephan Knoll

But The Advertiser has been told his company, Walker Corporation, also proposed a hotel on the Plaza’s eastern edge, fronting King William Rd and just to the north of Parliament House.

Both the hotel and a proposed second office tower were rejected because the Government believed this would have triggered a renegotiation of the deal and blown out timelines.

The Liberals are insisting on adhering to the schedule approved in mid-2016 by the previous Labor government, so the carpark’s opening late next year coincides with that of the Casino’s $330 million expansion. The Casino will lease 750 of the 1560 spaces, while the Government will lease 400 for $30 million.

Walker Corporation, which in 2012 won exclusive rights to develop the Festival Plaza, has told The Advertiser the “inferior and more expensive concept” instigated by Labor was being revised and this was expected to save taxpayers “tens of millions of dollars”.

Mr Cook, a co-founder of commercial property giant Colliers International and the major projects chief in former premier John Olsen’s Liberal government, quit last December as chairman of the Riverbank Entertainment Precinct Advisory Committee — set up by Mr Knoll just three months beforehand.

Work is underway on SkyCity’s upgrade. Picture: TAIT SCHMAAL.

Contacted by The Advertiser to comment on the Festival Plaza project, Mr Cook said he believed there was a better design than the current proposal but decided not to remain involved when changes were not supported.

Asked for comment, a Walker Corporation spokesman said the company had been working closely and productively with the Government, adjoining landowners and stakeholders to identify “areas of improvement relating to the functionality and the amenity of Festival Plaza”.

An artist’s impression of a part of the redeveloped Festival Plaza.

The Advertiser has been told there also have been disputes over the amount of open space for events versus the public amenity at other times, including discussion over the number of jacaranda trees. Plans do not yet include escalators linking the upper-level Plaza with the Riverbank Footbridge.

Mr Knoll said the Government wanted the Festival Plaza to be the state’s “premier public and events space — Adelaide’s answer to Melbourne’s Federation Square”.

“We are currently refining the design to make that vision become a reality,” he said.

Newly appointed SkyCity Adelaide Casino general manager David Christian said the $330 million expansion, including a hotel, rooftop venue, bars and restaurants, was on track to open late next year.

WHAT THEY SAID

Former Riverbank Entertainment Precinct Advisory Committee chairman Roger Cook:

“I spent about three months in meetings and consultations with numerous stakeholders and others and believe there is a better design than the current proposal; one that will enable the Riverbank precinct to become the event and entertainment hub of the state. It’s a unique opportunity to get it right and it won’t arise again. I decided not to remain involved when it became apparent the changes weren’t supported.”

Adelaide Festival Centre chief operating officer finance and governance Carlo D’Ortenzio: “Adelaide Festival Centre supports the redevelopment of Festival Plaza and looks forward to working with all our neighbours in the Riverbank precinct, and along North Tce, bringing this important site to vibrant life.”