Makris rejects reports of Le Cornu ultimatum
The Makris Group has rejected reports it is holding a gun to the State Government’s head by linking two separate development projects.
The Guardian Messenger reported today prominent developer Con Makris would “scuttle” his plans for a privately operated Glenelg-to-Kangaroo Island ferry service if it can’t get State Government funding and approval for its North Adelaide property development on the old Le Cornu’s site.
InDaily can reveal the latest plans for the site’s development includes a 100-room boutique hotel, apartments, and a new supermarket concept similar to Whole Foods in New York City.
“Con was in Greece when he was phoned by the media and what he said has been misinterpreted as a linked proposal,” Makris Group general manager Steve Ploubidis said this morning.
“He was asked about the ferry service and he said that his first priority, as a business, was the North Adelaide project.
“If that project didn’t go ahead, then he wouldn’t be proceeding with the ferry project because it carries a heavy financial loss in its early years.
“It was a case of explaining business priorities; we do not go about business in this town by holding a gun to the head of Government.”
He said negotiations on the new proposal for the long-vacant Le Cornu site were well advanced.
“We are well down the path of negotiating with Government to revitalise North Adelaide,” he said.
“Adelaide needs private cranes in the air and we plan to deliver.
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“KI is a separate project. Our focus for now is North Adelaide and KI will follow if North Adelaide gets the green light.”
The Makris team says they met with the Development Assessment Commission (DAC) and the State Government last week.
DAC is the independent statutory body which reviews development proposals.
The Le Cornu site already has major project status, granted in May 2007 when a hotel/apartment complex was proposed (see artist’s impression below).
It was put on hold when the Global Financial Crisis hit in late 2008.
Ploubidis says the new concept is a more advanced version of 2007’s proposal.
“The DAC and State Government, the banks and others involved are considering this project in its own context and it’s not related to the ferry project.
“We have done substantial work on North Adelaide. We met with DAC last week and plan to release architectural drawings when we go to full public consultation in November.
“We’ll actually have a shop front where people can see the design and ask questions,” he said.
“Then we’ll finalise the concept and lodge the formal submission early in the New Year.
“Once we have approval, then we can finalise the negotiations with a hotel group, the supermarket operators and commence pre-sales of apartments.
“Everyone involved is very excited with this project.”
In February this year the Makris Group sold its shopping centre in Bonnyigg, Sydney, to “cash-up” for the North Adelaide project.
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InDaily understands the Adelaide-based Romeo group is interested in the supermarket component based on a US “Whole Foods” concept.
Whole Foods, which specialises in natural and organic foods, started in Texas in the 1980s and expanded into New York, California and later the UK.
It sources products from certified local producers and its importers have to pass quality control tests that include “fair prices for crops, environmentally sound practices, better wages and labor conditions for workers and premium product quality”.
The Le Cornu site remains one of Adelaide’s eyesores.
In 1989 the Le Cornu furniture store was demolished.
Since then there have been seven development proposals. After each one failed, the developer sold the site.
Con Makris has held the site since 2001.
Adelaide City Council councillor Anne Moran told FIVEaa radio this morning the site should be developed as a matter of priority.
“Makris has had the site for a long time – if he can’t develop it he should on-sell it,” she said.
“The site is looking awful; we (the Adelaide City Council) have offered to rent it so we can provide parking for nurses.”
The Makris Group confirmed the car park offer, adding. however, that the offer was only made last Tuesday in a letter from ACC chief executive Pete Smith.
In Glenelg, meanwhile, the ferry proposal has received a lukewarm response.
In August 2013 the Makris Group started lobbying for State Government involvement for a 400-seat passenger ferry, which would take two hours to make the crossing to Kangaroo Island.
It was the latest in a long line of failed proposals for a new crossing to KI that included a catamaran service in 2006 that folded shortly after it started.
Holdfast Bay Mayor Ken Rollond said today the concept was “very difficult”.
“It’s been tried twice before and it’s a very difficult proposition,” the mayor told ABC Radio.
“The weather, tides – it’s all a bit pie in the sky.”
Treasurer Tom Koutsantonis said that any ferry project that included construction of public infrastructure “may attract government contribution”.
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