16 August 2024

Government promises to get 'tougher' on Canberra's epidemic of derelict local shops

| James Coleman
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Chris Steel: “I think we’ve seen at shopping centres like Richardson … shop owners who have done the wrong thing by the community.” Photo: Joy Burch.

The ACT Minister for Planning has accused the owners of Canberra’s derelict shops of effectively “land banking”, and promised “tougher measures for property owners who leave their local shop spaces vacant or unused” if re-elected in October.

“I think we’ve seen at shopping centres like Richardson, and other shops like Duffy, shop owners who have done the wrong thing by the community by leaving them run down and untenanted for too long,” Chris Steel said this week.

“If a building owner can’t tenant a local shop or redevelop their facilities to make them viable, they should sell them to someone who can.”

The comments came in response to a petition from locals about the state of the Richardson Shops.

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Ever since the IGA supermarket moved out of the small shopping precinct on Clift Crescent in 2019, followed by the last tenant – a hairdressing salon – in 2022, nearby residents complained the site has fallen into a state of disrepair.

“It has been damaged extensively – all the windows are boarded up and covered in graffiti,” lead petitioner Caitlin Tough told Region in February.

“I know how important it is for residents to have access to services and to have local facilities maintained and kept clean. The owners of Richardson shops seem to have failed the local community on both of those things.”

Caitlan Tough standing outside derelict shops

Caitlan Tough led a petition to resurrect Richardson Shops earlier this year. Photo: Joy Burch.

The petition, which attracted 372 signatures, demanded a “full update from the owner on any future plans for the site” and “advice of what alternate use of the land and site can be considered”.

The shops are owned by Michalis Investments, which has previously told Region “we don’t want it sitting there empty as it’s giving us no return” but accused the government of knocking back plans for a childcare centre, mechanics workshop, and service centre/shop.

In a subsequent investigation, Access Canberra found the “lessee is not currently in breach of the obligations” and “is experiencing difficulties securing a tenant”.

“The subject site is a privately leased block, and therefore, the ACT Government has limited options to make this service available,” the response also read.

aerial view of Richardson shops

Richardson Shops in an age gone by. Photo: Sentia Real Estate.

But in a separate statement, Mr Steel went further.

He said a re-elected Labor government would re-zone local shopping precincts for “multi-use developments” and allow apartments to be built on top of shops in what’s been dubbed “shop-top” housing.

In the case of Richardson, he would also open up an additional three blocks between the current shop site and the nearby skate park for development.

“It’s disappointing to see some owners of our shopping centres engaging in practices that are effectively land banking,” he said.

“Labor will provide incentives to renew these shopping hubs through supporting mixed-use development.

“We will also look at how underutilised land may support broader renewal of these centres. In relation to Richardson shops, there are currently three undeveloped parcels of land … near the shops. The government will look at releasing these blocks to stimulate renewal at the centre and promote a range of diverse uses.”

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However, he also said this may not be enough for some shop owners, and “disincentives need to be considered”.

“As part of our plan to encourage renewal at local shops, a re-elected Labor government will investigate tougher measures for property owners who leave their local shop spaces vacant or unused.”

Canberra Liberals MLA Mark Parton has campaigned vigorously on the state of Richardson Shops in recent months, posting a number of videos to his social media accounts showcasing their decay.

He described Mr Steel’s comments as “finally … an admission that the demise of Richardson shops is the fault of the government”.

“The Planning Minister has conceded that the government will need to provide incentives to get any forward movement here, which is an admission that the government has failed up to this point,” he told Region.

“The ACT is the most expensive and cumbersome place to do business in the whole of the country. The combination of rapidly escalating rates and charges and mountains of red tape combined with the cost-of-living crisis has led to many insolvencies.

“Mr Steel and most of his colleagues have never run a business, and it shows.”

He said the Canberra Liberals will respond with policy announcements “leading up to the election”.

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Chris Steel should not be making any decisions on behalf of property owners. He has zero business skills which can be seen from all his stuff ups. It’s interesting how the animal.kingdom wouldn’t allow the dumbest in their tribe to be in charge. I can’t wait to stop wasting my money on useless clowns like Steel.

Must be an election soon. Yet another simplistic thought bubble from a useless government. This time failing to make recognise the reality that local residents don’t use local shops enough anymore making them unviable.

Incidental Tourist1:12 pm 16 Aug 24

If you open small shop in Blue Mountains, NSW on a $500K land then you pay $3,750 commercial rates. In Richardson the same shop will cost you $29,186. I am not even talking about highest payroll tax and the maze of regulations. Are we surprised that all small shops have disappeared?

The biggest landbanker in the ACT, the ACT government, complaining about others land banking! Great to see the minister call it out as a problem but perhaps the ACT government should lead by example, and do more than flap their gums about it? The government has the power to adjust planning controls, call in DAs, cancel crown leases, auction off the property, or publicly develop, & sets rates of land value taxation. Interesting that Steel will ‘get tough on derelict shops’ by delivering exactly what land banking investors have been holding out for – relaxed planning controls, after knocking back their DA. Suggests to me that ACT government incompetence is the real reason for the existence of derelict shops.

Local shops become unviable.
Chris Steel, midwit extrordinnaire: A healthy dose of my useless interference will fix this!

🤣
Seriously, please just stop voting for these morons. I’d honestly vote for joke candidates over any Labor or greens candidate, because even joke candidates will do less damage than those clowns.

If the local shops are unviable, how low is the landlord prepared to drop the rent?

Something needs to be done if it makes better business sense to leave a shopfront empty rather than get a tenant in.

It’s not exclusive to suburban shops, the town centres have empty shops everywhere.
Inside the malls they hide them as a lounge area or an advertising sign because they value the experience. But land investors who don’t care about the foot traffic can just sit on an empty shopfront waiting for an investor to buy it to build a high-rise.

Some sort of interference is required whether from the current lot or the next.

Nonsense.
The owner can and should be able to do whatever they like with their property in regard to tenanting it. If the local clown council want control of commercial real estate, they can buy some of their own.

Capital Retro2:55 pm 16 Aug 24

Good point Ken M.

The current government have tried pop-up container villages and they were a commercial and financial disaster, all underwritten by the ratepayers of course..

Imagine what it would be like if they actually tried something bigger.

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