The cloud over retail giants IKEA and Costco’s speculated expansion to Newcastle has lifted.
An acquisition deal will see the Hunter & Central Coast Development Corporation (HCCDC) take control of the former Pasminco lead and zinc smelter site at Boolaroo on the state government’s behalf, unlocking billions of dollars in commercial and residential development potential.
Ownership of the 92-hectare site will be transferred from administrator Ferrier Hodgson to HCCDC, which will also assume responsibility for the ongoing maintenance of the containment cell established during remediation.
Lake Macquarie council chief executive Morven Cameron said this would fast-track the site’s redevelopment.
“The interest of the international large-format retailers has been put in doubt during the process, but with this change in ownership, we are now confident that progress can be made,” she said.
“We will work with all interested developers, the HCCDC and the local community to provide the best outcome.”
In addition to an estimated $1.8 billion economic benefit to the region and the creation of 837 full-time jobs post-construction, there is scope for 730 new homes.
“This is a fantastic result for Lake Macquarie that will see stalled opportunity removed and way too much gloom over the area lifted,” independent Lake Macquarie MP Greg Piper added.
“This deal puts [interested retailers] firmly back on the table.”
The news came after the council and the government worked at length with Ferrier Hodgson to develop a long-term environmental management plan for the site’s containment cell in the wake of the smelter’s closure in 2003, leaving homes in Boolaroo, Speers Point and Argenton covered in lead and black slag.
In 2017, Summerhill tip opened its gates to affected residents for them to dispose of contaminated soil, while the following year the government committed $800,000 over four years to help manage lead contamination, including the establishment of a grant program to assist landowners.
However, Shortland MP Pat Conroy said the government must now commit to allocating all profits it made from redeveloping the site to helping residents further.
“It is unfair that the burden of remediation of privately-owned blocks of residential land, at a cost of up to $100,000, has fallen on individual property owners,” he said.
There is no known safe level of lead exposure.
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