Proposal to sell three Council properties

Statement from our Mayor Marcus Pearl on the proposed sale of early years education and care centres

Our Council last night decided against selling three community-run early years education and care centres, subject to finalisation of funding arrangements.

This follows community consultation about the future of these centres - at 17 Eildon Road, St Kilda, 39 The Avenue, Balaclava, and 46 Tennyson Street Elwood – including with their operators.

Under the resolution, Council will seek to rebuild or renovate these centres if this funding is received.

Council Officers have been discussing options for funding support with the Victorian and Australian Governments for major upgrades to our Council’s childcare centre portfolio. While these confidential discussions are still underway, we have released this update for transparency.

We can report there have been productive conversations with the Victorian Department of Education and Training about long-term early childhood infrastructure needs across our City, including at those three centres. Discussions with the Department about potential co-funding arrangements under the Building Blocks Partnership program are progressing well.

We remain committed to continuing to invest in infrastructure across Port Phillip and would welcome opportunities to partner with the Victorian and Australian Governments in this. This is consistent with our Council’s long history of providing and supporting early childhood learning and care. We own 17 facilities which provide over a third of our City’s licenced childcare places.

We want to acknowledge the significant community interest in the future of these centres and thank everyone who provided feedback for us to consider.

While we cannot provide further details due to the confidentiality of these continuing discussions, we will update our community on this important issue as soon as we can.

The Q&A section of this page will remain open so officers can answer any question on the proposal.

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If you'd like to ask a question or you're after more information about this project, you can submit a question in the Q&A below.

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We've created this space for you to ask questions to Council officers. Please provide any feedback through the submission form so we can keep a formal record of all feedback received.

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Anthony Savenkov - Head of Real Estate Portfolio

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Timeline

Timeline item 1 - complete

Ordinary Council Meeting - 1 December 2021

Council resolves to commence of a community engagement process for the proposed sale in accordance with requirements under the Local Government Act 2020.
Timeline item 2 - complete

Receive submissions on proposed sale of three properties

Submissions process closes on 28 February 2022.
Timeline item 3 - complete

Hearings

Officers will report back the feedback received. Submitters and Committees will have an opportunity to present their submissions to an open Council meeting (mid to late May)
Timeline item 4 - complete

Presentation of consultation report

At the 18 May Ordinary Meeting, Council will receive a report on the consultations. This includes a report on the Have Your Say submissions and the Consultations with the Centres.
Timeline item 5 - complete

Council formally considers submissions

A subsequent Council meeting considering the officers analysis and recommendations in response to the consultation process and other relevant information (August/September).

FAQ

Document Library

Council has a long history of operating and supporting childcare and plays a role in delivering childcare and kindergarten services through direct ownership and management of five centres and financial support for 12 community-managed centres. Over the past decade or so, Council has developed four modern children’s centres, and is planning to redevelop North St Kilda Children’s Centre as a higher capacity, higher amenity and more functional day care centre with an all-abilities play space.

Following a comprehensive review its children’s services, a new children’s services policy “Every Child, Our Future: Children’s Service Policy” was adopted in September 2019.

The policy requires that ‘Council-owned facilities are fit-for-purpose and meet legislative and building compliance requirements’, and guides Council to ‘ensure facilities can meet current and future demand for children’s services in Port Phillip...[to] ensure Council provides facilities where there is evidence of a community need that can’t be met in any other way’.

Council’s centres compete within a broader childcare market that includes over forty childcare centres, registered family day care centres and in-home care providers.

Separate from its policy position regarding childcare provision, Council also has an obligation as a prudent landlord to manage the performance and risks of its portfolio – including by ensuring that Council assets are maintained to an appropriate standard and are compliant with building regulation and legislation.

Council charges its childcare centre lessees a Quality Building Levy to help fund renewal and replacement of its childcare facilities.

These small, community run centres were built as houses more than 100 years ago. They have declined with age, and do not meet modern building and accessibility standards.

Council bought all three properties at market rates, and has spent approximately $1 million in maintenance and renewal on these three buildings over the last five years to support the continued operation of the centres.

In the period since these centres opened, the standards for childcare centre buildings have changed. To bring these three centres up to standard requires a large investment, and each would need to close while works were underway.

There is no certainty that we could bring all three sites up to standard due to challenges with these specific sites, including:

heritage
size of the land
planning scheme
their residential location.

Undertaking significant or specific works can trigger the Building Code, and with it the requirement to bring the building to current commercial building standards. Additionally, the Disability Discrimination Act requires these buildings to be accessible to people with a disability.

In addition consulting with our community on the proposed sale of these three properties, Council will advocate to the Victorian and Australian governments to fund the works required to meet these standards. If the work isn't practicable, we will advocate to these governments for funding to purchase land and develop purpose-built childcare facilities.

As part of a staged renewal and upgrade of existing centres to become more fit-for-purpose over the next 10 to 15 years, we're planning for the replacement of the North St Kilda Children's Centre.

As well as being nearby to one of the centres proposed for closure, the North St Kilda Children's Centre is soon due for major renewal and upgrade, has potential for expansion of its facility and is located in an area of socio-economic disadvantage.

This new centre would offer our community a higher capacity, higher amenity and more functional childcare centre, and would be the first Council-owned centre fully compliant with disability access legislation.

Council is seeking state and federal government co-funding for the development of this new centre.

Contact Us

If you have questions or need support to make a submission, please contact us

Contact Information
Name	Anthony Savenkov
Phone	9209 6777
Email	Anthony.Savenkov@portphillip.vic.gov.au
In writing	Head of Real Estate Portfolio City of Port Phillip Private Bag 3 PO St Kilda VIC 3182

Have Your Say Port Phillip

Proposal to sell three Council properties

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Proposal to sell three Council properties

The Q&A section of this page will remain open so officers can answer any question on the proposal.

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Anthony Savenkov

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