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.
It is disappointing to see the delays in this process and now even more delays. We call on the ACT Government to impose a short time frame on Krnc Group to settle on this agreement and also firm up strong terms in the construction phase so we can see this cinema open by an agreed date. It was originally stated late 2016 was when it was expected this is what we demand to occur. In the meantime in the warmer months how about a couple of outdoor movie nights be held at Gungahlin Enclosed Oval!
When I asked MLA Meegan Fitzharris’ thoughts on this news she said “I am disappointed at the news, but I know this sale remains a high priority for the ACT Government. This is a commercial process but I’ll keep encouraging the government to do everything it can to make sure the sale is finalised and teh development can go ahead asap. I know how much the community wants to have a cinema.”
According the Australian Bureau of Statistics Gungahlin had the fastest population growth (8.4%) nationally from June 2013 – 2014. Surely this development would be an attractive proposition to a number of developers and cinema operators. With light rail going straight past this development that would have to add to the attractiveness of such a development.
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