I have received an update on the cinema development for Gungahlin. We have been advised that the Land Development Agency is still working closely with the developer on finalising the contract.
Settlement was meant to have occurred earlier this year with extensions granted to the developer. We were told in July that they had up until the end of July to finalise the contract which did not occur. The latest advice is now saying the absolute deadline is 31st of October.
When the developer does finalise the contract we would like to see some firm commitments as to when construction will commence and this be earlier than the 12 months allowed. We would also like commitments of completion. During the announcement phase of this development it was originally stated to be open in 2016. That will most likely not happen now.
In September 2012 in the lead up to the election the ACT Government called on expressions of interest for the development of a mixed use indoor entertainment facility, which included a cinema complex within the Gungahlin Town Centre.
The Government identified Block 1, Section 12 Gungahlin for release for this purpose – a site bounded by Hibberson, Hinder, Kate Crace and Efkarpidis Streets.
The request for expressions of interest closed in November 2012. Successful applicants from that process were then invited to participate in a Request for Tender (RFT) in early 2013. It was expected the successful applicant was to be announced in June 2013 and development on the complex to commence in late 2014. In June 2013 we were informed the RFT was issued to three successful respondents from the Expression of Interest Process. The RFT was to close in August 2013 with the preferred tenderer announced in September 2013. We were informed the delay in release of the RFT was due to further detailed site investigations. At this time were were also told development of the complex would still commence in 2014 and the cinema to open in late 2016.
In November 2013 it was announced the preferred tenderer would be local developers Krnc Group. It was also confirmed the complex would have seven screens, 2 large capacity theatres and 5 smaller theatres. The development would also have a mix of retail, commercial and residential.
Contracts were exchanged between Land Development Agency and Krnc Group in December 2014 and settlement originally planned for April 2015. An extension for settlement was agreed for 29th May 2015. It was confirmed today by Chief Minister Andrew Barr’s office that settlement was not achieved last week. I was also advised that LDA’s solicitors are liaising with Krnc Group’s solicitors to arrange settlement. We have been informed that Krnc Group still wish to proceed with the development.
If the ACT Government was to pull out of the agreement the whole process would commence again through the RFT process.
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