Developers cry foul on Federation Square East plans

THE development of Federation Square East is set to be put on hold indefinitely despite bold proposals for the MCG and Richmond rail corridor.

DEVELOPMENT of Federation Square East is set to be put on hold indefinitely despite bold proposals for the MCG and Richmond rail corridor.

Any project to develop the eyesore site over the rail lines would likely be economically unviable due to construction costs and planning restrictions.

The State Government declared it would not commit money into any project while the Property Council has said developers would no longer waste their time and money submitting ideas.

The impasse comes after the announcement of a proposed $1 billion makeover for the MCG precinct featuring parks, pop-up bars and pedestrian paths linking Brunton Avenue and Richmond railway station.

Any commercial development of Fed Square East would require high-tower construction — and the resulting floor space — to be economically viable, unless the state injected hundreds of millions of dollars.

The cost of building a deck over the lines would be an estimated $400 million alone.

A spokesman for Public Transport Minister Jacinta Allan said the Andrews Government at this stage would not invest in the project.

Any large-scale development could also conflict with planning restrictions as it would likely overshadow the Yarra River.

Major Projects Victoria has closed off expressions of interest for development of the site.

Some proposals were flagged for the 3.3-hectare site, 2.3 hectares of which are over rail lines, under a process ­started by the previous Coalition government, but none got off the ground. Melbourne Lord Mayor Robert Doyle said a heavy deck over the lines would cost “an absolute fortune”.

Lord Mayor Robert Doyle says redevelopment would cost a “fortune”.

“And then you need to get some height there and then you overshadow the Yarra,” he said. “With a light deck, there’s only comparatively few things you can do.’’

He said the site had been earmarked for development since he became mayor in 2008. But he said other sites around the inner city — Fishermans Bend, E-Gate, Docklands and Arden-Macaulay — were still to be developed.

Property Council deputy executive director Asher Judah said it wasn’t viable without a government subsidy.

“We’ve been through three different expressions of interest processes, with three different governments and we’re tired of fishing expeditions,’’ Mr Judah said.

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