St Kilda Marina Redevelopment Update
The long-term lease for the Marina was awarded to Australian Marina Development Corporation (AMDC) in December 2020, and since then, increased costs associated with managing historic soil contamination, combined with rising construction costs, have affected the project’s progress.
Port Phillip Council and AMDC have been working closely to navigate these financial challenges. AMDC has indicated that additional time is needed to assess the implications of the significantly increased redevelopment costs.
Since taking over the management of the Marina site, including its sub-tenants, in May 2022, AMDC has completed several key redevelopment tasks in line with the St Kilda Marina Site Brief. As part of the lease agreement, AMDC was required to obtain Council’s approval for its design drawings before submitting them for planning approval. This milestone was achieved at a Public Council Meeting in late 2022, and AMDC subsequently submitted a planning application in December 2022. The submission has been reviewed by Council’s statutory planning team, however it is currently on hold while other issues are resolved.
In parallel, AMDC and Council have been working together on an approach to manage the historic site contamination. Construction activities are expected to disturb this contamination, requiring a cost-effective remediation strategy. Council has committed to making a significant financial contribution (up to a maximum amount) towards managing these contamination costs, and efforts continue to minimise overall costs.
Recognising the economic challenges affecting the project, Council has extended a key milestone date in the lease to 31 March 2025. This extension allows AMDC additional time to confirm its ability to proceed with the redevelopment of this high-profile site.
If AMDC is unable to proceed, Council has developed a contingency plan involving a short-term 3.5-year ‘interim’ lease with AMDC from 1 April 2025. Under this arrangement, Council would receive approximately $1.8 million in rent over the lease term while ensuring the Marina’s continued operation. Meanwhile, Council is working with the Victorian Government to achieve the necessary legislative approvals for any modified tenure arrangements, as the Marina is located on Crown land.
We remain committed to keeping our community informed about this important project and will provide further updates as they become available. For more details on the St Kilda Marina project, visit: St Kilda Marina project – City of Port Phillip
https://www.portphillip.vic.gov.au/about-the-council/news-and-media/st-kilda-marina-redevelopment-update