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Govt sticks with gasworks developer despite $50k review

The Malinauskas Government will stick with the Victorian developer chosen by the Marshall Government over the Adelaide Football Club to develop the former Brompton gasworks site – but is refusing to release the full contents of a review it commissioned into the decision until “all commercial negotiations” have ended.

Sep 06, 2022, updated Sep 06, 2022
A render of the successful bidder's plans to redevelop the former Brompton Gasworks. Photo: MAB Corporation

A render of the successful bidder's plans to redevelop the former Brompton Gasworks. Photo: MAB Corporation

Planning Minister Nick Champion today delivered a ministerial statement to parliament outlining the results of an independent review into the former Marshall Government’s decision to award Victorian-based MAB Corporation exclusive negotiating rights to remediate the 5.8-hectare Bowden site just north of the CBD.

Former Treasurer Rob Lucas selected MAB’s $459 million master-planned village proposal ahead of the ahead of the Adelaide Football Club’s bid for a new headquarters. The Crows have since settled on Thebarton as the location for their new home.

The Malinauskas Government – who prior to the election said there was “widespread community disappointment” about the Crows’ Brompton snub – commissioned US firm AECOM to review the former government’s decision at a cost of $54,425.

Champion said the review, received by his office on August 22, showed the Adelaide Crows’ proposal for the site would not have been successful under the criteria set out during the original selection process.

He said Renewal SA would now continue “good faith” negotiations with MAB Corporation and claimed that “no time has been lost by the undertaking of the AECOM review”.

“The Review has determined that due to criteria, weightings, and the focus on commercial considerations in the “Request for Proposal” process set out by Renewal SA, the Adelaide Football Club proposal would not have been able to secure this site despite their clear and publicly stated interest in it,” Champion told parliament.

“The Review also indicates the provision of open space, entertainment and recreational opportunities provided in the Adelaide Football Clubs proposal may have resulted in a greater strategic and community benefit that may not have been captured in the criteria or weightings set by Renewal SA at the commencement of the process.”

Champion said the state government would not be releasing the AECOM review until Renewal SA has completed its negotiations with MAB.

“Due to probity and commercial sensitives contained in the AECOM Review it has been recommended to Government that the Government wait until all commercial negotiations with MAB Corporation have concluded before releasing the AECOM Review,” he said.

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Shadow local government spokesperson Sam Telfer later asked Champion whether he would “release the Brompton report in full.”

Champion replied: “Obviously there’s a great deal of commercially in confidence information in that report.”

“We will publicly reveal as much as we can while respecting the commercial sensitivities of the process.”

Asked by Telfer when Renewal is expected to conclude its negotiations with MAB Corporation, Champion said: “That’s a matter for Renewal SA and MAB to conclude the negotiations and for it to go to the board.”

“So I’m not going to put a timeline around that because it’s up to them. “

Champion later told parliament that negotiatons between MAB and Renewal SA “remain entirely on track”.

He also said MAB Corporation has now agreed to a series of improvements to their master planned Brompton village proposal.

This includes an increase in open space from 25 per cent to over 30 per cent and an increase to the mandated affordable housing from 15 per cent to more than 17 per cent.

The original version of MAB’s $459 million master-planned village proposal featured a 120-room hotel, 207 townhouses, 305 market sale apartments and 120 affordable apartments.

Shadow planning spokesperson Michelle Lensink said: “It comes as no surprise that MAB Corporation is the best proponent to redevelop the Brompton Gasworks site proving Labor wasted time and taxpayers’ money.”

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