A milestone has been reached towards a $600 million redevelopment of the Little India precinct in Dandenong.
The State Government has given the green light to a Planning Scheme Amendment for the ambitious plan of 470 new homes as well as new apartment, retail and office towers and 2500 square-metres of community spaces.
The proposed first stage in the Foster Street precinct includes homes, a supermarket and a food market hall.
The project, which is expected to support about 2600 construction jobs, was first touted in 2020.
The redevelopment was expected to occur at seven stages around Foster Street, bounded by Settlers Square, Dandenong train station, Halpin Way, Thomas Street and Cheltenham Road.
Capital Alliance chief executive Mohan Du said the PSA approval was an “important milestone in the delivery of this generational masterplan vision”.
The project would transform central Dandenong into “Melbourne’s second capital city”, Du said.
Private developer Capital Alliance released a master plan for community engagement in 2022.
It included a plan to relocate Little India retailers to a new laneway between Halpin Way and Foster Street, as well as a 29-storey hotel and conference centre, 29-storey office tower and an outdoor plaza on the corner of Foster Street and Cheltenham Road.
An urban brewery entertainment district and supermarket was to be the last stage constructed from 2038.
A community centre near Settlers Square, and a school at the corner of Mason and Foster Street was also proposed.
The government’s developer arm Development Victoria will now partner with Capital Alliance on a development plan, which is subject to final approval.
Greater Dandenong Council has no planning authority over the project. It reported that after the development plan, Capital Alliance will submit planning applications to the Planning Minister for each stage of development.
The project renews Sites 11 to 15 as part of the State Government’s 18-years-and-growing Revitalising Central Dandenong program.
The Government says RCD is expected to attract $1.2 billion in private investment and sustain up to 500 jobs.
“Dandenong is booming,” Development Victoria Minister Colin Brooks said.
“And we’re ensuring more homes and jobs are created closer to public services, so local families can access everything they need, close to where they live.”
Dandenong MP Gabrielle Williams said “we’re turning this area into a vibrant new neighbourhood with hundreds more homes and jobs, right on top of a dining and entertainment precinct”.
Dandenong Community Association residents group has criticised the quality of public consultation on the project.
“The Capital Alliance project has had no genuine community involvement,” spokesperson Silvia Mastrogiovanni said.
“The consultation process was minimal and insincere with the sessions basically telling us what the State Government and the developer had already agreed. “Now we find out that the final decision has been made without even the community knowing.”
Ms Mastrogiovanni said the council “made no effort to advocate for Dandenong residents to be genuinely involved”.
