Economic crisis puts big projects on hold

Andrew Mathieson
PROPERTY developers are shelving plans to invest in central Geelong amid the global financial crisis, according to the city’s councillor responsible for major projects.
Stretch Kontelj said “probably a dozen” projects were on hold.
He predicted some projects would lapse.
Cr Kontelj said the “worm has turned” for the next two to three years while financiers remained uncertain about the ability of various projects to achieve projected tenancy rates and developers’ chances of on-selling their high-rise buildings
“There’s no doubt developers are reviewing their plans throughout the city at the moment – it’s a sign of the times,” he said.
“As I understand it, unless a building is coming out of the ground now we’re unlikely to see any new building in the immediate term until the financial crisis settles.”
City Hall controversially lifted building-height restrictions for inner-city residential areas last year to accommodate anticipated growth.
The new limits cascade from 10 to eight and-six storeys progressively toward the waterfront.
The City introduced the new limits after approving a twin-tower project of up to 16 storeys on Mercer Street in July.
The Victorian Government met council earlier this month to discuss ways for the state to take control of Geelong’s planning powers to fast-track development projects around central Geelong.
“They would be better off putting their resources into attracting new development into the town and not setting up processes to deal with it because the reality is there are no projects at the moment that they have to be concerned about,” Cr Kontelj said.
He called for government-funded development to generate immediate projects and jobs while possibly attracting private investment over the next few years.
Council had been continually lobbying governments for support to build a proposed convention centre in Geelong, he said.
“The time has now come if the state and federal governments are serious about stimulating the economy in Geelong,” he said.
Cr Kontelj revealed City Hall had also put on hold plans to consolidate its offices in a single building.