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Key points
- Planning decisions are sitting for up to two years on planning minister Sonya Kilkenny’s desk frustrating developers, businesses and residents.
- Major projects sitting waiting for the minister’s approval include Shell House on Spring street, the Goods Shed at Collins street, the Younghusband wool sheds in Kensington and commercial offices in Port Melbourne.
A pile of development decisions worth billions of dollars is mounting on the Victorian planning minister’s desk, frustrating developers, businesses and residents.
The delay in receiving planning approvals – now stretching to two years – had costly knock-on effects, said Planning Institute of Australia state vice president Jane Keddie.
Planning Minister Sonya Kilkenny.Credit: AAP
Two years was not a normal timeframe for ministerial review, Keddie said.
“There is not a lot of transparency in terms of all the applications and what stage they are at,” she said.
Keddie said there were delays at all levels of government, yet the state government was still pushing to take more planning powers away from local councils.
“The idea that bringing everything in through the minister’s office will suddenly make a massive difference is yet to be demonstrated,” she said.
“The reality is with any applications that land on the minister’s desk, the same as any on council’s desk, there can be various complexities and issues as to why things get delayed.”
Major Melbourne projects pitched to Planning Minister Sonya Kilkenny, who has been in the job for 12 months, include Shell House on Spring Street, the Goods Shed in Collins Street, the Younghusband wool stores in Kensington and commercial offices in Port Melbourne.
Property Council Victorian executive director Cath Evans said delays in the planning approval process added costs to a project.
“Delays impose additional holding costs on the developer and introduce uncertainty and risk into the equation, thereby reducing their ability to source affordable capital to complete the project,” she said.
“This creates an environment where developers and investors are less likely to initiate projects they view as likely to suffer from planning approval delays.”
Kilkenny declined to comment on the delays in considering the applications.
Major development projects awaiting ministerial approval include:
Shell House
Corner of Spring and Flinders streets, Melbourne
The fate of one of Victoria’s most significant modernist buildings – designed by world-renowned architect Harry Seidler – has been in the hands of the planning minister for two years.
The owners of Shell House, the Besen and Roth families, want to redevelop the heritage-listed site by adding a 32-store secondary tower on the building’s rear plaza.
Shell House is a modernist building at the corner of Spring and Flinders streets in the Melbourne CBD.Credit: Jason South
The new high-rise, which would be used by office and retail tenants, has been met with opposition from nearby residents and heritage advocates.
The application was “called in” by former planning minister Richard Wynne when it was referred to the Heritage Council for review in December 2021 and has not progressed since.
The owners amended their plans last year, and they were approved by the City of Melbourne in April 2022, but the decision sits with Kilkenny and cannot progress without her approval.
The Besen and Roth families declined to comment.
Goods Shed
Collins Street, Docklands
The No.2 Goods Shed was built in 1889 and is listed in the Victorian Heritage Register as the largest and most architecturally elaborate 19th-century railway goods building in the state.
Developer Walker Corporation, owned by billionaire Lang Walker, lodged an application in April last year to build two towers on top of the shed, preserving part of the building inside the glass.
An artist’s impression of Walker Corporation’s proposed $750 million development above the No.2 Goods Shed.
The $750 million twin office tower project would flank both sides of Collins Street. It was rejected by Heritage Victoria in January but was supported by the City of Melbourne in March.
It has been with the planning minister since then.
A spokesman for Walker said that despite the delays, the developer was keen to proceed.
“Walker remain strongly committed to delivering the Goods Shed,” he said. “We appreciate the minister is taking all necessary steps on this significant and city-shaping project.”
Younghusband Wool Store
Elizabeth Street, Kensington
The heritage wool store buildings in Kensington are being redeveloped in three stages.
The first stage is under construction, and the $70 million third stage – supported by the City of Melbourne – includes office space, retail tenancies and a publicly accessible private plaza.
City of Melbourne Lord Mayor Sally Capp said: “I particularly like the thoughtfulness throughout the project that has gone into the open spaces and the urban realm that is available to the public.”
An artist’s rendering of the Younghusband development at the Kensington site.
The development has been waiting on consideration from Kilkenny since September.
Port Melbourne
Sardine Street
An application for a three-level office building in Port Melbourne was supported by the City of Melbourne in July, and has been waiting for the planning minister’s consideration since.
The development would include 50 canopy trees and more than 5000 square metres of landscaping.
At a City of Melbourne council meeting, Deputy Lord Mayor Nicholas Reece said the proposed development aligned with the council’s intention to support new and innovative businesses.
“If this development does proceed, it would be a good outcome for the site,” he said.
The site at 21-52 Sardine Street is subject to a public acquisitions overlay.
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