Places alliance ’risky business’

GEELONG’S council has been warned to exercise caution over a planned strategic alliance with Places Victoria because the statutory authority is in “crisis”.
Council decided last week to form the alliance to promote urban renewal in central Geelong after a Places Victoria office opened in the city last year.
But Places Victoria faces an $18 million deficit after its first year of operation, according to state opposition planning spokesman Brian Tee.
The organisation’s chairman, deputy chair and chief executive had resigned, while almost a third of staff had been sacked, he said.
State Government created Places Victoria in 2011 to facilitate urban renewal around Victoria for residential and mixed-use purposes.
Mr Tee said Places Victoria was in financial crisis.
“Places Victoria is trying to balance the books and flogging off everything they’ve got.
“I hope council has done its due diligence and urge it to be careful before putting ratepayer funds in the hands of Places Victoria because of the uncertainty surrounding it.”
Mr Tee said Places Victoria had “walked away from Dandenong and now it’s getting excited about Geelong” while facing the same issues.
Council’s planning portfolio holder, Rod Macdonald, said council had taken Places Victoria at face value.
“There could be things that have happened that we don’t know about. It’s a government instrumentality and a statutory authority, so it needs to be managed by State Government. It’s not something we can control.”
Cr Macdonald said the alliance aimed to kick-start shop-top developments in central Geelong.
“Places Victoria has access to capital and can take equity positions in developments
“Getting a shop-top demonstration project started would be ideal but the relationship at this stage is purely advisory while we work toward an outcome.”
Planning Minister Matthew Guy blamed the previous Labor government’s “lack of oversight” for Places Victoria’s “massive financial challenges”.
“It is astounding Brian Tee would criticise an alliance that will provide an opportunity for job growth in Geelong. We have full confidence in the board and the executive team at Places Victoria to continue to deliver urban renewal.”