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Get on with it, Rau tells casino

Aug 13, 2015
An artist's impression of the revamped festival plaza with a casino hotel (in yellow) rendered at top right.

An artist's impression of the revamped festival plaza with a casino hotel (in yellow) rendered at top right.

For the second time this week, the State Government has called on a multinational company to hurry up and make a decision about the future of a key project in South Australia.

Deputy Premier and Planning Minister John Rau today called on the operators of the Adelaide Casino to make a quick decision about its long-awaited $350 million redevelopment of the key Riverbank site.

Yesterday the casino’s operator, SkyCity, told the stock exchange that a start date for the project was “uncertain”, although it remained committed to the redevelopment.

SkyCity says it is still reviewing concepts and costs for the project, which would expand the casino and include a six-star boutique hotel to the north of the current Railway Station site.

Rau told ABC 891 this morning that SkyCity should make a decision about the project soon, as the Government would need to consider other options should the redevelopment not go ahead.

“I can’t emphasise enough that it would be in everybody’s interests including theirs if they were to make a decision one way or the other as soon as possible,” he said.

Earlier this week, acting Treasurer Jack Snelling chastised mining giant BHP Billiton, telling the company to “come clean” about its plans for the Olympic Dam mine in SA’s far north.

SkyCity’s statement to the stock exchange yesterday has clearly worried the Government.

It reported “disappointing” results for its Adelaide operation, despite a positive overall result for its Australian and New Zealand operations.

“SkyCity continues to review the concept design and development costs to ensure the expansion project best meets the future requirements of the South Australian market and is value-enhancing for shareholders,” SkyCity said in its results overview.

“However, timing to commence the expansion works is uncertain and needs to be coordinated with the South Australian Government’s and Walker Corporation’s plans for the broader development of the Riverbank precinct.”

Today Rau said the Walker project was the reason why the casino needed to decided on its path.

“I expect that work will commence in that plaza area towards the end of this year and it would be sensible from everyone’s point of view if their work – if they’re going to do any – is done at the same time.”

He said the Government had “done everything we can to facilitate the investment by the casino”.

He also warned that if the casino decided against building on its northern edge, then the Government would have to find a new development to fill the space.

“Now, if the casino are not going to put something there then we will obviously have to turn our minds to what goes there, because it’s important that all sides of that new plaza square are activated …. We don’t want that to just be as it presently is, which is basically a car park with a few rubbish bins sitting in it.”

In March, developer Walker Corporation reached a deal with the State Government for a $600 million redevelopment of the Festival Centra Plaza, including rebuilding the car park and the constructing of an office tower between Parliament House and the casino.

Skycity CEO Nigel Morrison said at the time the plaza deal was “a major step forward” for the precinct.

“With the announcement of this development and the key terms of the car park lease now confirmed, Skycity can now progress its plans to transform the Adelaide Casino into a world-class integrated entertainment complex,” he said.

“We continue to explore a range of different expansion options and hope to finalise these plans over the coming months.”

It has now scaled back its rhetoric.

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