A $1.5 million “teahouse” will be built on the site of the Blackbird river ferry by the end of next year under a proposal revealed by Maribyrnong council.
Under the plans, developer Castlewell Pty Ltd will fund construction of the 140-seat cafe-restaurant on Crown land beside the Maribyrnong River.
The developer will then have a heavily discounted lease before rights to the property revert to the council in 21 years.
The proposed draft lease was presented to Tuesday night’s council meeting. It fulfils a contract signed by the council in 1998 for development of part of the Saltwater Precinct.
In recognition of Castlewell’s initial outlay, the restaurant operators will pay rent to the council of $114 a year for the first 10 years, climbing to $2750 in years 11 to 15 and $5500 in years 16 to 21.
Once the lease expires, the council will be able to rent the site at market rates, now estimated to be valued at $65,000 a year.
The development will also include an office for Maribyrnong River Cruises and moorings for the iconic Blackbird, as well as public moorings.
A planning permit has been granted and the 21-year lease will commence following approval by Environment, Climate Change and Water Minister Lisa Neville.
Construction is scheduled to begin within months and be completed by the end of next year.
Maribyrnong River Cruises captain Peter Somerville, who has run the Blackbird on the river since 1979, has expressed concern about the impact on his operations during the construction phase and the loss of his mooring for much of the year.
The report on the proposal noted discussions on this matter were ongoing.
“Council officers will continue to facilitate discussions between MRC, Parks Victoria, Castlewell Pty Ltd and other stakeholders to assist with the temporary relocation of MRC while construction is in progress.”
Public submissions will be invited on the 21-year-lease proposal.
