St Kilda Marina project

Project approach

Work to prepare for a new long-term lease for the St Kilda Marina has been underway since September 2016, when Council resolved to undertake a competitive selection process. This project is included in our Council Plan 2017-27.

In February 2018, Council approved the project approach, which describes the key project stages, activities and deliverable's, and associated timeline. As the project evolved and various requirements came to light, the project approach evolved. The updated project approach (PDF 11 KB) was approved in June 2019.

About the Marina

St Kilda Marina is located on Crown Land, for which Council is Committee of Management. Australian Marinas (A'Asia) has a 50-year lease for the site which expired on 30 April 2019.

St Kilda Marina was constructed by the current lessee under the St Kilda Land Act 1965 on a man-made harbour developed from reclaimed land. It opened in 1969 and was Australia's first large scale marina.

The marina currently includes a range of wet and dry berths, recreation activities including Sky Dive Melbourne and retail and hospitality venues including Riva St Kilda, St Marina, St Kilda Boat Sales and Rollo’s Kiosk.

Landlord approval and planning submission

28 February update

The current long-term lease for the St Kilda Marina (the Marina) was awarded in December 2020 to Australian Marina Development Corporation (AMDC). Since this time, the redevelopment works timeline for the Marina has been impacted, by both higher than anticipated costs for management and remediation of historic soil contamination, and the economic challenges driving up construction costs across the country.<

Whilst Council and the leaseholder have worked collaboratively to resolve a way forward to manage the contamination costs, AMDC has informed Port Phillip Council that it needs extra time to work through any implications of the significantly escalated redevelopment costs.

Since May 2022, AMDC has been operating the Marina and managing the site (including the sub-tenants). AMDC has also completed the following redevelopment tasks required under its lease, in line with the St Kilda Marina Site Brief: 

• The lease includes a Landlord Approval Condition requiring the tenant to obtain the Landlord’s (Council) written consent for the proposed design drawings intended to be submitted for planning approval. AMDC worked with their design team and various authorities to develop their concept design to a level that is suitable for a planning submission to be assessed in accordance with the planning scheme.  

• AMDC achieved landlord approval in late 2022 at a Public Council Meeting and subsequently developed the drawings to a stage where they were able to make a planning submission in December 2022. The submission has been reviewed by Council’s statutory planning team, however is currently on hold while other issues are resolved.  

In parallel, AMDC has been working with Council on an approach to managing the historic site contamination that would be disturbed during typical construction processes. 

While the site contamination has presented challenges, extensive collaboration has resulted in a strategy to manage the contamination in a way that minimises remediation costs. Work is ongoing to further minimise those costs. Also, Council has committed to making a significant financial contribution (up to a maximum amount) towards the management of contamination.  

While we had hoped the project would be further advanced by now, we acknowledge the significant cost escalation in the estimated redevelopment costs. This is why Council has extended a key milestone date in the lease to 31 March 2025. This will provide additional time for AMDC to work through this challenge and confirm their ability to proceed with the redevelopment of this high-profile site. 

If this is not possible, a short-term 3.5 year ‘interim’ lease is proposed to replace the current lease with AMDC from 1 April 2025. Council will receive rent of approximately $1.8 million across the term of this lease, if it is activated. 

If required, this contingency plan will ensure the continuing operation of the marina while we develop a way forward.  

To this end, Council has been working with the Victorian Government on how to achieve legislative approvals of any modified tenure arrangement as the marina is on Crown land.  

We will continue to keep our community updated on this key project.  

The new lease includes a Landlord Approval Condition which requires the tenant to obtain the Landlord’s written approval of the proposed design drawings intended to be submitted for planning approval. Since the execution of the new lease for St Kilda Marina in December 2020, the new tenant has been working extensively with their design team, other technical consultants and various authorities to develop this concept design to a level that is suitable for a planning submission to be assessed in accordance with the planning scheme.

The design presented for Landlord Approval by the Tenant is the culmination of detailed investigations (including market sounding, site and operational assessments building and regulatory reviews) and extensive design work. The design has evolved to respond to the wide-ranging new and more detailed inputs, including considerable changes to the economic environment. Changes are a frequent (if not standard) outcome of a design evolution process such as this.

At a Council Meeting on 20 July 2022, Council was asked to consider material changes to the lease approved concept that have evolved through detailed design. These changes are presented in detail as part of this Council Report. An attachment to this report summarises the proposed changes and Council officer recommendations and includes supporting images to assist in understanding what has changed from the lease agreed concept.

Council endorsed the recommendations as detailed in the resolution and selected the option that enabled the tenant to comprehensively investigate their proposal for an extended beach.

An additional Council Meeting was held on 6 October, as part of the Landlord Approval process, for Council to consider three design elements proposing material changes to the lease concept that were not approved at the 20 July Council meeting but have since been revised. Council endorsed the recommendations which provide the tenant with the approval to submit the design for planning approval. The Council Report can be found here – 6 October 2022 Council Meeting.

A snapshot of the Landlord Approval submission by the tenant for the 20 July Council Meeting can be found here - a Landlord Approval Extract document.

Sets of drawings showing extracts of the updated landlord approval submission can be found here:

SKM Architectural Drawings LL Submission Rev – Extract (PDF 21.8 MB)
SKM Landscape Drawings LL Submission Rev - Extract (PDF 33.0 MB)

New lease came into effect on 1 May 2022

The new lease with Australian Marina Development Corporation (AMDC) came into effect on 1 May 2022.

There will be a range of new subleases (approved by Council officers) to keep most of the existing businesses operating while design works for the new development (including planning approvals) progress and the first stage of the redevelopment is ready to commence in 2023.

The Marina and Coast Guard related functions will also continue as per their current operation until the redevelopment commences and will continue to be accommodated in the redeveloped site.

One of the more immediate key changes for the site under the new lease is that there will be a new tenant running the petrol station – On The Run. This was a business decision made by AMDC, and they have arranged a sublease to On The Run that will expire in 10 years’ time. At the end of this 10-year period, the petrol station site will be redeveloped by AMDC to meet the requirements of the Site Brief.
AMDC has also retained a number of existing key staff who have worked at the Marina for a considerable amount of time.

Council and AMDC will continue to work together to engage the immediate marina and wider community as the transition and design and redevelopment works progress. We have a few things planned for the early stages of the new lease to demonstrate the evolved design for various areas of the site.

St Kilda Marina new lease concept

The fly-through below gives you a glimpse into the St Kilda Marina new lease redevelopment.

We would like to thank everyone involved for their engagement in this significant milestone.

For information about the new lease, its relationship to the Site Vision and Objectives, and the design features including concept images for the redevelopment, please refer to the St Kilda Marina project update - new long-term lease (PDF 2 MB).

The former Mayor shares information from the Marina about the proposed new lease and future for the St Kilda Marina below.

Detailed information about the leasing process and outcome including Council’s resolution on 15 July 2020 can be found in the Leasing Process Questions and Answers (PDF 700 KB).

Planning scheme amendments

Running in parallel with the procurement process was a planning scheme amendment, endorsed by Council in July 2019 to facilitate the delivery of the Site Vision and Objectives and the parameters defined in the St Kilda Marina Site Brief.

The planning scheme amendment was approved by Minister Wynne on 8 November 2020 and was formally gazetted on Monday 7 December 2020.

Find more information on the Planning Scheme Amendment.

Determining and delivering the vision for the redevelopment

The 50-year lease for St Kilda Marina expired on 30 April 2019, presenting an exciting opportunity to reimagine the future of this site and unlock its full potential as a working marina and key destination for locals, Melbournians and national and international visitors.

To ensure the full potential of the site is realised as part of a new lease arrangement, Council committed to a multi-stage community engagement program, working closely with the community at key stages of the project to understand and consider the community’s values and aspirations for the local area and specifically for the site.

Key themes that emerged from engagement with the community included:

• less fencing
• be more welcoming to everyone
• reduce conflict between pedestrians, bike riders and cars
• protection of key views
• more and higher quality public open space
• protect and enhance local flora and fauna
• provide year-round activation opportunities
• a comparable number and type of commercial operators.

A 23-member Community Panel was established in 2018 to bring a focused community voice with broad perspectives to the development of solutions for the future of the marina site. Community panel members worked with Council officers and technical advisers to develop a set of design criteria for the site to inform a site brief, the St Kilda Marina Site Brief.

The criteria established the parameters for the future state of the Marina as the best means to achieve the site vision and objectives.

The St Kilda Marina design criteria provides a framework for the future redevelopment of the St Kilda Marina site. They include:

• guidance on the site's future form and function
• the height, scale, location and massing of the new buildings and requirements for the location
• quality of publicly accessible open space and connections.

Each of the design criteria has a role in delivering the place identity, social and cultural, economic, environmental and financial objectives for the site.

The Site Brief sets out the key information required for everyone to have a shared understanding of current conditions and desired outcomes at the St Kilda Marina, including Council, the community, marina and wider precinct users, and potential lease holders.

The Site Brief includes information on:

• the site vision and objectives informed by the community
• the Marina's future uses
• guidance on issues such as height, scale and location of new buildings
• the location and quality of publicly accessible open space
• connections and movement to and within the site views
• marina function
• commercial space.

Procurement overview

The procurement process for a new long-term lease was approved by Council on 5 June 2019 and had two stages - a publicly advertised invitation for Expressions of Interest (EOI), released on 8 June 2019, and a Request for Proposal (RFP) approved by Council for release to a shortlist of tenderer's on 18 September 2019.

Following the close of the RFP period on 19 December 2019, a two-stage process for the evaluation of proposals was conducted in accordance with an approved evaluation plan by an evaluation panel comprising of members with varied but specific expertise and supported by specialist consultants. Proposals were comprehensively assessed against a set of evaluation criteria designed to achieve the Site Vision and Objectives and the design parameters identified in the Site Brief.

The purpose of Stage 1 of the evaluation process was to evaluate and recommend proposals to Council to proceed to Stage 2, the negotiation phase, and outline the broad framework and key points for refinement of the proposal/s. In this stage, Councillors had an opportunity to provide feedback on the design proposals.

The Evaluation Panel Report recommended proposals progress from Stage 1 Evaluation to Stage 2 Evaluation - Negotiation. This report was endorsed by Council on 18 March 2020. It also detailed the proposed negotiation strategy, which also responded to Councillors' feedback on the design presentation.

The purpose of Stage 2 Evaluation was to undertake negotiation with proponents proceeding through to this stage. This stage provided the opportunity for Council to refine the proposals to better suit Council's and the community’s requirements as reflected in the site vision and objectives, and the evaluation criteria.

Following initial negotiations and proposal refinement, Councillors were presented with an opportunity to review the refined design and provide feedback. A detailed assessment was undertaken by the evaluation panel of the final refined proposal and an evaluation panel report detailing the process, assessment against the selection criteria and a recommendation was provided to Council for decision.

Stage 2 of the RFP evaluation was completed on Wednesday 15 July when Council resolved to appoint a preferred tenant (AMDC) for the St Kilda Marina, subject to Council completing the process under Sections 190 and 223 of the LGA, resolving to grant the lease and obtaining Governor in Council approval.

You can find more information about the procurement process (PDF 3.1 MB), including the Council-approved Procurement Plan, and the evaluation criteria approach, please see below.

Community and stakeholder engagement

We are committed to offering genuine opportunities for community and stakeholder feedback to shape the outcome for the future of the St Kilda Marina site.

The project Community and Stakeholder Engagement Plan (PDF 189 KB) clearly outlines the objectives and scope of engagement for the project.

In Stage Two of the project, Council invited feedback on the draft Site Vision and Objectives for the St Kilda Marina site in May 2018. This consultation with the community informed the final Site Vision and Objectives, which were endorsed by Council on 4 July 2018.

As detailed in the Stage Three Community Engagement Report (PDF 8.2 MB), Council worked with a Community Panel to develop parameters (design criteria) for inclusion in the Site Brief. Guided by the Site Vision and Objectives, the Panel worked hard to accommodate a number of economic, social, financial and environmental benefits.

Council also invited feedback from the broader community via our Have Your Say page to test the ideas being explored by the Panel. We have shared the Community Panel's journey on our Have Your Say page and will continue to post engagement opportunities there.

As part of Stage 6 of the project (Delivering the new lease), an opportunity was provided for the community to receive detailed information about the approved concept plans for the site (as part of the lease) and provide feedback on elements of the design, features and community use of the site.

To stay updated about the project and future engagement opportunities please email skmproject@portphillip.vic.gov.au

Interim lease

In April 2019, Council resolved to enter into a three-year interim lease arrangement with Australian Marinas (A'Asia) Pty Ltd, to cover the gap between the expiry of the former lease and the start of a new long-term lease arrangement.

The interim lease has been approved by the Victorian Government (through the Governor in Council process) on 30 July 2019 is now in place until 2022 to cover the gap between the expiry of the original lease and the start of a new long-term lease arrangement. This will enable continuity at the Marina while Council works to deliver the future vision for the site through a new long-term lease arrangement.

For more information about the interim lease, see the following documents:

• Frequently Asked Questions (PDF 406 KB)
• Interim Lease (PDF 8.45 MB) (within the 1968 St Kilda Marina Lease)
• Market Rent Assessment (PDF 1.4 KB)
• Original Head Lease (PDF 807 KB)
• 1968 Supplemental Agreement (PDF 474 KB)
• 1969 Supplemental Agreement (PDF 106 KB)
• 1981 Supplemental Agreement (PDF 273 KB)

Budget and breakdown

The costs include:

• consultancy
  • site investigations and surveys
  • contaminated soil
  • commercial property advice
  • urban design
  • Environmentally Sustainable Design (ESD) and coastal resilience
  • heritage
  • market research
  • probity
  • design review panel.
• legal costs including lease development and legislation advice
• community and stakeholder engagement.