Development Victoria reaches settlement deal with tenants of Docklands’ Central Pier

Development Victoria has reached a settlement deal with tenants of Central Pier in Docklands almost five years after the precinct was closed over safety issues.

The state government has reached a multimillion-dollar settlement with tenants of Central Pier in Docklands on the eve of court proceedings.

The popular precinct was dramatically evacuated in August 2019 when diners were given just 15 minutes to finish their meals and leave due to major structural problems.

The Herald Sun last week revealed state government body Development Victoria was facing a $42m damages payout after it was sued for gross negligence and incompetence for allowing businesses to keep operating while allegedly knowing the structure was in danger of collapse.

Central Pier in Docklands was dramatically evacuated in August 2019. Picture: Ian Currie

The case was due to be heard in the Federal Court on Monday but was settled out of court for an undisclosed sum before Justice Timothy McEvoy dismissed the claim.

A Development Victoria spokesman said: “The parties have agreed to resolve the dispute on confidential terms, and the Proceeding has been dismissed. We are unable to comment on the terms of settlement, which are confidential”.

Atlantic Group CEO Hatem Saleh, who was part of the claim, in a statement said: “It’s been a challenging number of years for all involved and we are now looking forward to getting on with what we do best”.

“We’d like to thank the state government for its support in working to resolve this matter in collaboration with Development Victoria.”

The pier was permanently closed in 202 due to safety issues. Picture: David Caird

Central Pier Pty Ltd said it had reached an agreement with Development Victoria on Monday afternoon.

“This was achieved following productive discussions between both parties outside of the Federal Court hearing scheduled to start this morning,” the tenancy group said in a statement.

The 2019 shutdown forced multiple bars, restaurants and function centres to permanently close and the cancellation of hundreds of weddings and formal events, including the AFL’s Rising Star awards.

The state government has reached a multimillion-dollar settlement with tenants of Central Pier. Picture: David Caird

The pier, previously home to The Woolshed Pub, function spaces and Cargo restaurant, was permanently closed in 2020 due to safety issues more than 100 years after it was built and included on the state heritage register.

About 1000 workers lost their jobs.

Central Pier claimed Development Victoria ignored strong advice from its engineers to close the pier 18 months earlier because of serious deterioration.

Sources said the government body had already incurred massive legal costs defending the case and it was understood some tenants had already been compensated.

Demolition of the derelict pier began in late September last year.