A historically-significant site previously earmarked for a council project to rejuvenate Dandenong’s CBD is being proposed for sale.
On 25 June, Greater Dandenong councillors approved the former pharmacy site at 275 Lonsdale Street was surplus to requirements.
Funds from the sale were needed for other council projects, according to a council report.
In 2019, Greater Dandenong bought the fire-ravaged building with plans to demolish and consolidate the site with the adjoining Vanity Lane for a pedestrian link.
But last year, the seemingly cash-strapped council voted to abandon the project, which faced a $1 million-plus shortfall.
Instead the funds were to be diverted towards the long-stymied Dandenong New Art gallery – which had blown out by five years and $6.2 million.
The sell-off – for no less than the market rate – is subject to a four-week community engagement process. It has yet to be advertised on the council’s website.
A council website describes 275 Lonsdale Street as a “site of historic significance” – the home of pharmacies run by the notable Couve and McKeon families as well as a state-significant botanical collection.
A pair of boys from the Couve family were among the first from Dandenong killed at Gallipoli in World War I.
Meanwhile, DNA gallery’s opening has pushed out to at least the end of 2026.
The troubled project was originally due to open as a “state-of-the art” attraction in mid-2021 but has been at a standstill with a dispute with builder Harris HMC as well as with Covid-related supply, labour and cost issues.
Last year, there were further delays as the adjoining Precinct Energy Plant building was slated for demolition due to “structural deficiencies”.
The PEP had been hoped to become a community arts studio and performance space.
The council’s city futures executive director Sanjay Manivasagasivam recently said the DNA project was “on pause” until the PEP building was removed by August-September.
“We will continue to work on the procurement process for the new art gallery.
“Our expected time for completion of the project is around 18 to 24 months.”
According to council figures, the gallery was originally estimated to cost $9.49 milion. Last year, the project was estimated to have blown out by up to $6.24 million.
The council has budgeted $4.26 million for the project in the 2025-’26 financial year.
Meanwhile, Greater Dandenong expects to go into underlying deficit for the first time in 2025-’26 as it commits to its most expensive-ever project the $122.2 million Dandenong Wellbeing Centre (DWC).
On average, $3.5 million deficits per year are projected to continue for three years.
The council expects to take on significant debt and draw down on reserves for the DWC next financial year, borrowing $68 million in the next two years and spending $16.6 million from reserves next year.
It will be spending up to $7.2 million a year to service the loans.
A council report warned that it will need to assess the future of its current services, and to consider asset sales.
