Melbourne Lord Mayor Nick Reece wants action on the Melbourne Star Observation Wheel

Melbourne’s new Lord Mayor Nick Reece is calling for action on the Melbourne Star, as the three-year anniversary of its closure approaches.

Lord Mayor Nick Reece wants to see the Melbourne Star spinning again. Picture: Andrew Henshaw

Melbourne’s new Lord Mayor has called for action to finally get the city’s troubled big wheel turning again – or turfed from its prime location.

With the three year anniversary of its closure fast approaching, the Melbourne Star Observation Wheel (MSOW) still lays dormant in Docklands as the city’s biggest white elephant.

Liquidators appointed to sell the $100 million landmark, opened in 2008, confirmed they were still in talks with a potential buyer.

But with the drawn out process frustrating nearby traders and making the site an eyesore, Lord Mayor Nick Reece said it was time to act.

Lord Mayor Nicholas Reece at the Melbourne Star Observation Wheel at Docklands. Picture: Andrew Henshaw

“The Melbourne Star has been out of operation and sitting stagnant for nearly three years – and that’s far too long,’’ he said.

“It’s time for action.

“The City of Melbourne is dedicated to activating the Docklands precinct and it’s frustrating to see such a prominent feature gathering dust.’’

The Herald Sun in June last year revealed liquidator Grant Thornton was in talks with a potential buyer for the site who was likely to get the wheel turning once more.

That came after failed talks with foreign suitors interested in buying the wheel, dismantling it and moving it overseas or to another site.

But hopes of a new deal for the wheel have since stalled.

Victorian Chamber of Commerce and Industry Paul Guerra agreed, it was time for action.

“The wheel needs to light up and spin again or it needs to leave,’’ he said.

“While it remains idle, it casts an unwanted shadow over the Docklands prospects.

“The area has so much potential, but a stagnant wheel is a constant reminder of the opportunity lost for the whole precinct.

“Alongside the wheel, let’s add another attraction to help the Docklands precinct grow.”

Melbourne Star Observation Wheel has sat dormant for nearly three years. Picture: Brendan Francis

In a statement Andrew Hewitt, the financial advisory of liquidator Grant Thornton, said: “We are currently working with a party in relation to the MSOW.

“And they are continuing the due diligence process to assess the operational issues in respect of the Wheel.

“Upon completion of this they will determine whether they wish to progress to a purchase of the assets.”

But he released almost the exact same statement to the Herald Sun in June last year.

At a time Docklands needed to attract visitors, Mr Reece said it was frustrating for tourism, locals, traders and the economy that such a prominent site lay dormant.

“We understand the creditors are in ongoing discussions about the future of the Star, whether that be refurbishment or dismantling,’’ he said.

“The City of Melbourne does not own the asset or the land on which it is built.

“We stand ready to assist in whatever way we can to get this project moving once more.’’

He said the council would continue to pursue “collaborations” with Docklands landholders and Development Victoria about “initiatives to activate the precinct.”