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Expression of Interest - 287 Diagonal Road, Oaklands Park (Current location of MCC)

12 September 2018 Update

  • Marion Council considered four proposals to build an international-standard hotel at its 11 September Council meeting.
  • Council did not select a preferred proponent to move to a full business case as it considered insufficient information was provided to make a recommendation.
  • Staff will continue to talk to interested parties about developing an international-standard hotel in the City of Marion.
  • The Marion Cultural Centre’s services will be retained.
  • The minutes of the meeting will be available on the City of Marion website by 5pm, Friday, 14 September (marion.sa.gov.au)
  • The EOI to potentially build a hotel on the site occupied by the Marion Cultural Centre closed on 21 August 2018.
  • The EOI was prompted by an unsolicited inquiry
  • All facilities at the Marion Cultural Centre, including the art gallery, café, theatre and library continue to operate as normal
  • A decision on a hotel development will not occur without consultation


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The City of Marion is seeking suitably qualified organisations to submit an Expression of Interest (EOI) in developing and subsequently operating a hotel facility at 287 Diagonal Road, Oaklands Park.

Ideally situated on one of South Australia’s foremost community precincts, the Oaklands Park site connects with the city, regional centre and cultural heart.

The bold vision for the site will transform it into an innovative mixed-use precinct, focusing on open spaces, recreation, accommodation, commerce, arts, culture and community services.

The City of Marion is open to development opportunities being located within a new building or the existing buildings. It will consider a range of delivery options to enable the successful proponent to develop and operate a hotel together with complementary activities to activate the site in accordance with the vision and project objectives.

Due consideration must be given to the retention or replacement of the community functions of the existing site.  Expressions of interest may possibly incorporate the development of Warracowie Way.

Why did the City of Marion seek an Expression of Interest (EOI) for an international standard hotel at 287 Diagonal Road, Oaklands Park (the site of the Marion Cultural Centre)?
  • The EOI has been prompted by an unsolicited inquiry to redevelop the Marion Cultural Centre for commercial use, incorporating an international standard hotel.
  • It is proposed the development would be built on land currently occupied by the Marion Cultural Centre.
  • For commercial reasons, Council is unable to name the developer or outline the proposal.
Why do we need an International Standard Hotel?
  • A hotel would overcome a severe shortage of accommodation in southern Adelaide and create jobs and local investment.
  • More than 18 million people are attracted to the inner south each year for business and pleasure and visitors have few accommodation options.
  • In 2017, the Southern Adelaide Economic Development Board – a partnership between Marion and Onkaparinga Councils – released its priorities for the region.  Included was the need for an international standard hotel in Oaklands Park.
Why 287 Diagonal Road, Oaklands Park?
  • A hotel will have Marion Shopping Centre, the South Australian Aquatic and Leisure Centre, and public transport on its doorstep.
  • It will also be in easy reach of the Tonsley innovation precinct, Flinders University, Flinders Medical Centre, the CBD and the coast.
Why go through an EOI process?
  • An open and competitive EOI will test the market to determine the degree of interest in building an international standard hotel in the heart of Marion
  • An EOI will ensure the process is transparent and open to all proposals
  • Council on June 12 agreed to appoint a specialist advisor to oversee the EOI process, which is expected to be released publicly for two months from late June.
When will the EOI open?
  • The EOI is managed by the Contracts Management Team and will be open from Tuesday 26 June 2018 for eight weeks. The tender is available on the Tender SA website www.tenders.sa.gov.au
When will the EOI close?
  • The expression of interest will close at 2pm on 21 August 2018.
Where can the EOI be found?
Who is the key contact for the EOI?
  • The key contact for the Expression of Interest is Tim Hoggan, Senior Contracts Officer.
  • Phone: 8375 6717.
  •  Email tim.hoggan@marion.sa.gov.au
Who is the Project Manager at the City of Marion?
  • The Project Manager within the City of Marion is Donna Griffiths, Unit Manager Economic Development. This role is a member of the City Activation team.
What will happen to the community facilities located at that site?
  • Proposals would need to consider the retention or replacement of existing community facilities.
Does Council have to proceed with any EOI?
  • No.  The process is subject to Council approval.
  • The final decision on whether to proceed or not with a development is many months away and will most likely be made by the new Council after the local government elections in November 2018.
Will community be consulted on any plans for the site?
  • The community will be consulted before any decision is made on the future of the site.
When will Elected Members see the shortlisted proposals?
  • Elected Members will meet on 11 September 2018 to consider the submitted proposals.
What are the next steps once the proposals have been shortlisted?
  • Shortlisted proponent(s) will be requested to prepare full business case for Council to further assess and consider the long term viability of the proposal at the site.
How can I provide feedback?
  • Call customer service on 8375 6600 or email – council@marion.sa.gov.au.
  • Any emails are then delivered to the most appropriate department within council to provide a response.
What size international standard hotel would be built?
  • It is not known at this stage. Proposals submitted as part of the Expression of Interest process will outline the details which Council will consider as part of the evaluation process.  It will need to meet the requirements of the Regional Centre Zone which is part of the City of Marion Development Plan.
How will car parking be managed?
  • The proposals must outline the provisions for onsite car parking and traffic management solutions to access the site as part of the development.
When will we see something happening on site?
  • It is not known at this stage. Proposals submitted as part of the Expression of Interest process will outline indicative timeframes for such a development which Council will consider as part of the evaluation process.
What will happen to the community assets?
  • Any proposal would need to factor in replacing or retaining the library, theatre, art gallery and café contained in the MCC.
  • These are important community services that need to be preserved.
Where can I find more information about the project moving forwards?
  • Via this web page.
What are the milestones for the Expression of Interest?
  • Expression of Interest – released to the open market – 26 June 2018
  • Expression of Interest closes – 21 August 2018
  • Evaluation of respondents – August / September 2018
  • Council to consider preferred shortlisted proposal(s) – 11 September 2018
  • Council Elections (caretaker period to polling day) – 18 September to 10 November 2018
  • Shortlisted proponent(s) advised that they have progressed to Stage Two – Full Business Case - TBD
  • Stage Two – Full Business Case closes – TBD
  • Council considers the full business case for the proposed use and/or development of the site – TBD

Do you have a query?

For further information about the project, contact:

Donna Griffiths
Unit Manager Economic Development