Ministerial Statement

Festival Plaza Redevelopment

The Hon. S.C. MULLIGHAN (Lee—Minister for Transport and Infrastructure, Minister for Housing and Urban Development) (14:00): I seek leave to make a ministerial statement.

Leave granted.

The Hon. S.C. MULLIGHAN: Earlier today, the Premier and I—I should say the Premier and I, and another guest (the deputy leader)—had the pleasure of attending the announcement that agreements had been reached with Walker Corporation and SkyCity for the redevelopment of the Festival Plaza precinct situated directly adjacent to Parliament House. Broadly speaking, the development will comprise a new 1,560-space underground car park and a 40,000 square metre 24-storey office building and retail development, along with new public realm.

Importantly, the government has also reached agreement for an early works package with SkyCity. The early works package will provide for a grade separation of Festival Drive to separate pedestrian and vehicle movements. It will establish a new pedestrian entrance to the rear of the Adelaide Railway Station from the Riverbank footbridge, and constructs both temporary and permanent loading facilities for the InterContinental Hotel. It will also complete works to allow for SkyCity's proposed development, including pilings, foundation and subbasement works. The tender for these early works is being released today.

As members would also be aware, works have already commenced on the upgrade to the Adelaide Festival Centre. Tying these developments together will be an upgraded Festival Plaza that will be a unique world-class hub for the arts, culture, tourism and entertainment pursuits. The redeveloped plaza will be defined by a number of key places, including a new square, an upgraded northern promenade to the northern side of the Adelaide Festival Centre, redefined integration with King William Road, an arts-based plaza, the redesigning of Station Road, and a new entry to the Adelaide Railway Station. The new plaza will be an attractive destination and will be the centrepiece of a revitalised arts, culture and leisure precinct, embracing the Riverbank at the heart of our city.

There has been some comment about why it has taken such a period to get to this point. It is important to realise that the agreements reached were not simply as a result of negotiations between the government and one other party. These negotiations and eventual agreements took account of the requirements of numerous parties, including the Adelaide Festival Centre, SkyCity, the InterContinental Hotel, the Convention Centre and the Riverside Centre, being stakeholders in and around the plaza. This is not to mention the large amount of private sector funding which naturally required careful commercial negotiation and consideration.

Turning to the agreements themselves, I can advise the house that the government has now executed a development agreement with Walker Corporation for the delivery of the integrated development of the car park, upgraded Festival Plaza, and office building and retail development. Sitting beneath this development agreement are a number of other agreements, such as leases for the office and retail development, as well as a sublease of car parks back to the government.

In order to facilitate the development of the car park and plaza, the state must first carry out a package of these early works. As mentioned earlier, the government has entered into an agreement with SkyCity for this. The total government expenditure on the Adelaide Festival Centre precinct will be $180 million. This includes approximately $90 million for the Adelaide Festival Centre upgrade and northern promenade works, an upgrade of the Festival Plaza realm, and the Adelaide Festival Centre upgrade.

The government leaseback of 400 car parks will be at a cost of $30 million. Included within this amount is $20 million for the early works, in addition to a $5 million contribution from SkyCity. Importantly, this development is to attract over $700 million in private sector investment, with Walker Corporation's office and retail development and the early works package, and the ability for SkyCity to proceed with their $300 million expansion.

As for the timing for the delivery of this project, I can advise that the tender for the early works will be finalised by June 2016. Early works construction will occur between August 2016 and December 2017, with Walker Corporation to demolish the existing car park and construct a new car park, along with the public realm, from February 2017 to the completion of these works anticipated by August 2019.

Commencement for the construction of the office and retail development will be able to occur as early as mid-2018 and, once it has begun, it is anticipated to take approximately 20 months. This is a tremendous development opportunity for the City of Adelaide, building on what we have already done with the redevelopment of Adelaide Oval, two stages of the Convention Centre, the new Royal Adelaide Hospital and of course the South Australian Health and Medical Research Institute.

The SPEAKER: Questions, leader.

Members interjecting:

Mr MARSHALL: I am waiting for the call.

The SPEAKER: Yes, I said 'leader'. They wouldn't have started thumping the table if I had not said 'leader'.