State to double money on Moorabool project

Jessica Benton
STATE Government stands to double its money on a controversial property development in Geelong’s Moorabool Street.
The Government’s development arm, VicUrban, estimates it will spend $26 million on a project with a value of $50 million at completion.
VicUrban general manager Dominic Arcaro confirmed the figures in a statement to the Independent.
“Twenty-six million dollars refers to the development value of what has been approved in the current planning permit: the 30 (social housing) apartments, three retail spaces and the 45 townhouse lots. This also includes the current value of the heritage building, pre refurbishment,” Mr Arcaro said.
“Fifty-million dollars refers to the anticipated value of the whole development once built and finalised if it were to be sold.”
The Independent reported earlier this month that residents neighbouring the development believed State Government was wasting tax payers money using prime real estate for social housing.
The residents were also furious the Government had fast-tracked VicUrban’s plan for 90 dwellings as well as ground level retail shops on the disused Gordon TAFE site without community consultation.
New government planning rules allowed Planning Minister Justin Madden to fast-track 27 social housing plans across Geelong without consulting council or residents.
Mr Arcaro said the 30 social housing units in the Moorabool Street development would be worth “no more” than $300,000.
“The Nation Building Social Housing Initiative provides for Government funding of such developments up to a maximum of $300,000 per dwelling,” he said.
“VicUrban is in the process of finalising costs with the Office of Housing and the prices of the apartments will be well within this threshold.”
Urban Development Institute of Australia executive director Tony De Domeneco said the Government was onto a winner with its Moorabool Street development, based on the cost and value figures.
“If they’re able to double their rate of return then they’ve done very well and they’re on to a good deal,” Mr De Domeneco said.
He welcomed State Government to the world of property development.
“This shows that VicUrban is getting back to doing what its supposed to do – the provision of social housing,” he said.
“Government has a role to be involved in social housing. There are more and more of these sorts of projects happening, especially overseas, where public and private components are being mixed in together.”