Kings Square project
Project starts:
What is the Kings Square project?
The Kings Square project, as it currently stands, is a proposal to investigate the possibility of redeveloping key sites in and around the Kings Square precinct in Fremantle. These include City–owned sites (the library, council offices, Queensgate Centre, Queensgate car park, the vacant Spicer site, Fremantle visitor centre and the civic space within Kings Square) and the Myer building, owned by Sirona Capital Management.
Why does the City want to redevelop Kings Square?
The redevelopment of parts of the Fremantle CBD is a key strategic imperative, as outlined in the City of Fremantle Strategic Plan 2010–15, to ‘strengthen Fremantle’s economic capacity’ and to ‘provide a great place to live, work and play through growth and renewal’.
The Kings Square precinct was identified as a key redevelopment site in the Fremantle Retail Model Plan, the recommendations of which were incorporated into the City of Fremantle Economic Development Strategy 2011–2015 adopted by council in April 2011.
What are the council’s overall objectives for Kings Square?
The City of Fremantle has a clear vision to revitalise Kings Square and surrounding sites as an important social, civic and commercial hub in the heart of the City. Specific objectives, as outlined in the City’s strategic plan are to:
- Increase commercial and retail activity in and around the precinct
- create a vibrant town centre
- replace or refurbish the library, council offices, Queensgate Centre, Queensgate car park, Fremantle Visitor Centre and the civic space within Kings Square
- retain Myer or another anchor tenant on part of the Sirona property
- consider the development of a new hotel
- consider options for the development of the Spicer Site.
Is Myer staying in Fremantle?
The final decision on whether Myer will remain in Fremantle is yet to be made by Myer. The City is confident however, that an integrated redevelopment of key sites within the Kings Square precinct will create an attractive social and retail environment and enhance the likelihood that Myer will remain as a key retail anchor in the Fremantle CBD – or enable the attraction of an alternative anchor retailer.
What is the Memorandum of Understanding (MOU) between the City of Fremantle and Sirona Capital Management recently agreed to by council?
The MOU will enable the City of Fremantle and Sirona − the two property owners in the Kings Square precinct − to undertake the necessary scoping and feasibility studies necessary to determine whether there are real benefits to both from common redevelopment of the Kings Square precinct. Under an MOU agreement, no commitments have been made other than to negotiate exclusively with each other in good faith. The MOU expires 30 June 2012.
Who is Sirona Capital Management Pty Ltd?
Sirona Capital Management Pty Ltd is the owner of the Myer building. Sirona acquired the building from previous owner, Saracen Properties earlier this year. Sirona is a Perth–based equity capital provider with links to significant international equity funds.
Why is there an exclusivity clause in the MOU?
A key feature of the MOU is an agreement between the City and Sirona to negotiate exclusively and in good faith. This makes good sense to both parties given that between them, the City of Fremantle and Sirona own all properties within the Kings Square precinct. The exclusivity period ends with the expiration of the MOU on 30 June 2012.
Does the MOU commit the council to developing its buildings?
The MOU does not commit either the City of Fremantle or Sirona to any development activities. The MOU simply provides the means for each party to investigate, in good faith, the opportunity to work together for redevelopment within the Kings Square precinct.
Why didn’t council put the Kings Square project to tender?
The City’s overall objective is to create an integrated retail and commercial environment within the Kings Square precinct, with Myer remaining as the anchor retailer.
For this reason, dealing with Sirona (as the owner of the Myer building) presents the most logical option to achieve an optimal degree of integrated redevelopment within Kings Square.
What will happen during the MOU period?
The City of Fremantle and Sirona will now undertake feasibility and scoping studies; and conduct due diligence. The City will also be providing regular community updates to inform the Fremantle community and other stakeholders of progress, including results of the various investigations.
What happens at the end of the MOU period (30 June 2012)?
As the end of the MOU period draws near, the City of Fremantle and Sirona will discuss their findings and make a decision on whether these findings warrant proceeding to the next phase of negotiations. Before any binding agreements are entered into, the City of Fremantle will prepare a detailed business plan and will invite public comment via a formal six-week community engagement process.
Upon completion of this process and a decision by council to proceed, the City of Fremantle and Sirona will enter into a binding Heads of Agreement (HOA). The HOA will provide the platform for redevelopment activities to commence.
Who will carry out the development?
Saracen Properties has been earmarked as developer of the Myer building, however, if an agreement is reached on the integrated development of the Kings Square precinct, the developer of City-owned sites will be appointed based on the City’s requirements.
How tall will the buildings be?
Any redevelopment of the Kings Square precinct will be done in full compliance with the requirements of the City of Fremantle Planning Scheme. This will include all proposed building plans being assessed by the council’s Design Advisory Committee for suitability.
Won’t it be a waste of time and resources if the project doesn’t go ahead?
While there will be considerable resources directed into the Kings Square precinct investigations, the City of Fremantle believes that if a binding agreement is not reached with Sirona, the information collected during this period will enable the City to consider alternative options for redevelopment of its properties within the precinct.
How does the current proposed City of Fremantle Local Planning Scheme Amendment No 49 affect future development decisions for Kings Square?
The Kings Square project sits outside and is separate from current community consultation processes underway for the proposed City Central planning scheme amendments. However, given the timing of the proposed development, the final outcome of the proposed planning scheme amendment will obviously apply.