In the latest blow to Dandenong’s arts precinct, the intended home of a future community arts space will instead be demolished.
Greater Dandenong Council chief executive Jacqui Weatherill didn’t rule out seeking compensation after recent engineering reports found the Precinct Energy Plant (PEP) building had “structural deficiencies”.
The building may not withstand a significant earthquake and was not suitable for public use, she said.
Demolition is expected to start within three months. The future use of the site is not yet decided, Weatherill said.
“We’re procuring the demolition now. It’s not appropriate to discuss the cost during procurement.”
The site at Settlers Square was intended to house a Creative Industry Space (CIS) with artist studios, rehearsal and performance spaces and meeting areas.
Next door, the future Dandenong New Art (DNA) regional gallery – a project that has been mired in delays and cost blowouts – is now again on hold until the PEP is demolished.
According to the council, the demolition won’t cause “adverse impacts” to the closely abutting, historic DNA building.
The CIS and DNA were intended to replace the council’s Walker Street Gallery.
That replacement plan hasn’t been impacted, with the council still committed to the CIS’s “co-design and community engagement objectives” as well as the DNA “priority project”, Weatherill said.
In 2020, the council acquired the 13-year-old PEP building in a land swap with Development Victoria. Its structural flaws dated back to its construction, Weatherill said.
“Due diligence at that time (of the land swap) reported the building would be suitable to be re-purposed for public use.
“However, recent engineering reports revealed that the building is not suitable for public use and it may not withstand a significant earthquake.
“While the likelihood of a significant earthquake is extremely low, in the interest of the surrounds and public safety, we have taken the decision to demolish the building.”
Weatherill said there was no other cost-effective way to remediate the building to make it suitable for public use.
“We assure the community that the building is sturdy and has remained in good condition for the 13 years since it was built.”
The PEP formerly provided energy to surrounding buildings with electricity and heating thermal energy. It was decommissioned prior to its handover to the council in 2020.
Under the land swap, the council paid $125,000 to Development Victoria for the PEP, a former Masonic Lodge which is now the DNA site as well as public open space at Harmony Square.
Development Victoria gained the council’s 34-space car park at 2 Mason Street – now part of the Capital Alliance redevelopment.
Weatherill didn’t rule out seeking compensation over the defective PEP.
“While Council may consider actions against other parties in due course, that is not our priority right now.
“Our current focus is on a timely, safe demolition with the least amount of disruption possible for the surrounding businesses and people who work, study and visit the area.”
The DNA contemporary art gallery at 5 Mason Street was originally due to open as a “state-of-the art” attraction in mid-2021.
Last year, after a protracted dispute with builders, it is now expected to be completed by late-2026 and cost an extra $6.24 million.
It means the DNA project will effectively double in price to an estimated $12-13 million.
