Developer Lang Walker’s proposed commercial tower on the Festival Plaza may be used to fund the Adelaide Festival Centre’s long-awaited redevelopment.

The centre hopes to recoup rent from commercial developments on the plaza which could be used to fund the overhaul.

Walker has submitted a plan to develop the plaza – which The Advertiser has reported includes a large office block and new car park – which the State Government is currently considering.

A development plan amendment released by the State Government on Monday removes height limits in the area making a large development possible.

Walker’s proposal came after the Adelaide Festival Centre released its own $414 million redevelopment plans in 2011 which included a full refit of ageing theatres, a new media gallery, new theatre, playground  and commercial office block. The masterplan proposed funding would be raised from government and the private sector.

While he refused to comment on the specifics of Walker’s proposal, Festival Centre head Douglas Gautier told InDaily his organisation saw a need for commercial development on the plaza to fund the centre’s artistic activities.

“Centres like this need to be developed for the greatest public good and access and usage and therefore the agency that runs them should be allowed to developed their commercial assets to the best possible advantage to make sure that there is funding for that activity – and that means car parks, and concessions for food and beverage, and restaurants,” he said.

“That’s very much in evidence for developments elsewhere, because the drip in terms of pure grant money from governments for organisations like this is diminishing across the world.

“So it’s much more a commercial responsibility on the agency like this one to really develop all its assets in the public interest, so you’ve got that commercial revenue supporting all the non-profit work that we are clearly responsible for.”

The Festival Centre was the attraction that brought people to the area and made commercial developments viable.

“Centres like this actually put the programming on, and we market it and ticket it. So the large percentage of the car parking clientele and custom is generated by the centre.”

In many public space developments around the world revenue earned from private tenants flowed to the cultural agency which acted as the landlord, Gautier said.

However, he said the South Australian Arts Minister was the landlord for the Festival Plaza.

“These are things to be worked out,” Gautier said.

“But all I can say is the commercial operating model and best use of public asset model is there for all to see. So some variant of that is certainly on our minds.”

So far the full Festival Centre redevelopment has not been funded by the State Government.

At the development plan amendment launch on Monday, the State Government compared the development of the Festival Plaza to Melbourne’s Federation Square.

Fed Square was built using government funds, but was designed so its continued operation was funded via private tenants.

Last year the square earned more than $15 million from tenancy rents, plus another $3.7 million from car parking charges.