Constituency Question: Kew Residential Services Development Agreement | Sue Pennicuik

Constituency Question: Kew Residential Services Development Agreement

Thursday, February 9, 2017 - 11:15am
Sue Pennicuik

Sue Pennicuik (Southern Metropolitan) My question is for the Minister for Major Projects, and it is in regard to the Kew Residential Services development agreement, about which I asked her a question last year. The minister did respond to me, saying that Major Projects Victoria (MPV) had agreed to an extension with Kew Development Corporation until 27 April 2018, and the letter had been sent to them by MPV on 22 June. However, on the government's contract publishing system website, the sixth deed of variation was not actually signed until 9 December, which was six weeks after the expiration of the current contract on 27 October 2016. My question to the minister is: what was the cause of the delay in signing the deed and will that have any implications down the track?

ANSWER on 23 March 2017:

Major Projects Victoria (MPV) obtained legal advice confirming that Kew Development Corporation Pty Ltd (KDC) was entitled to an extension to the Kew Residential Services Development Agreement (DA) to 27 April 2018. The extension was confirmed by letter to KDC on 22 June 2016.

The extension to the Project Term was one of several matters referenced in the Sixth Deed of Variation to the DA (Sixth Deed), which was executed on 9 December 2016. The timing of the execution of the Sixth Deed was driven by the conclusion of negotiations between MPV and KDC on other matters finalised in the Sixth Deed. Some of these matters included financial payments due to MPV from KDC; funds reserved to address a GST refund between the parties; and completion of conservation works to three heritage buildings located within the Heritage Core at the Kew site. The Sixth Deed was executed promptly following resolution of all of these matters.