The Esplanade Alliance

Is the Espy saved?

The Espy hotel, the raffish pub on St Kilda's trendy foreshore, and the parcel of land it shares with other historic buildings, has been owned by Becton Corporation since August, 1997. Becton is a major real estate developer and its intention has always been to develop the Espy site - a prime, some have even said iconic, location - as a residential tower and restaurant complex. There is nothing intrinsically wrong with that - except that the developer continually refused to work within the parameters and values of the Council's planning guidelines.

As a means to override the planning scheme, the Espy has proven to be a wonderful bargaining chip. Its place in the evolution of Melbourne's, indeed Australia's, live music culture and its symbol of irreverence touch the hearts and soul of many generations who have passed through its doors. This emotional connection, this collective or shared sense of the things that are important in our daily lives, has made the Espy a prime carrot in Becton's development vision.

Carrot #1 - demolition

Whilst there were no immediate plans to demolish the pub in 1997, Becton Director Hamish Macdonald told the Emerald Hill Times he would give no guarantees. . . "I am loathe to make any commitment . . ." ('Invitation goes out for changes to the Espy Hotel', 22 October, 1997).

Two months later the Port Phillip Leader reported, "Becton has given Port Phillip Council no commitment to retain any of the site in a potential redevelopment" ('The end for the 'Espy'?, 1 December, 1997).

Fearing the worst, the Esplanade Alliance rallied to highlight the cultural and heritage significance of the hotel. In response, Becton offered to keep the Espy - but only if it could build a 38-storey tower, where only six-storeys was allowed by the planning scheme governing the site. The Esplanade Alliance mounted a campaign that saw over 10,000 people object to the proposal.

When the planning application was rejected by the City of Port Phillip, Mr Macdonald told The Australian it was "always a chance" that the Espy, the centre of Melbourne's live rock scene, could be knocked down under any new plans developed by his company. He admitted Becton's proposal for a 38-storey tower behind the hotel might be wrong; but said at least the company had guaranteed the long-term future of the Espy (Developer threatens to knock down Espy, 17 December, 1998).

Carrot #2 - deterioration

But the pub didn't get knocked down. Instead Team Becton allowed the Espy to deteriorate. By the time a working party was established in May 2000, to find a compromise that would allow the site to be redeveloped - in a way the would satisfy both the council and the developers - the deterioration was at a point where the hotel was almost forced to close.

The working party report said that some sections of the building were in a 'dilapidated, unsanitary and, in some instances, unsafe condition' which threatened its 'very existence.' (Time running out for move on the Espy, says report, Port Phillip Leader, 13 November 2000)

With the Espy in danger of closing, the Esplanade Alliance agreed to a compromise - it would support height limits being lifted from six to eight storeys to allow the developer an additional margin to cover the cost of badly needed repairs and maintenance.

The resultant amendment to the Planning Scheme, Amendment C25, adopted by Council and finally approved by the Minister for Planning in August 2002, in fact allows the developer a maximum of 10-storeys.

Carrot #3 - strangulation

In the meantime, Becton 'sold' the business (in effect passing on the cost of repairs) and entered into two lease arrangements with the new operators - a 200 year lease on core parts of the hotel, and a short term lease for supporting areas - such as loading bays, cold storage areas, bottle shop and kitchen. The pub appeared to be safe from further bargaining, until. . . . . .

Becton submitted its new proposal. Again it failed to encompass the values in Council's planning scheme; once again the Esplanade Alliance mobilised in defence of local planning guidelines. The proposal was subsequently rejected, February this year. Whilst waiting for its appeal to be heard by VCAT, Becton indicated it would not renew the short term leases held by the Hotel's operator and due to expire early August - in effect strangling the operation of the Espy.

With the Espy once again in danger of imminent closure, a deal was announced on 29 July, 2003 - Council would allow the demolition of historical Baymor Court and Becton would draw up a new lease with the hotel's operator that would allow additional space (about the size of 12 car parks) for the badly needed loading and storage areas.

This is the deal that VCAT supported in its verdict of 19 August. The heritage trade-off is a blow to a very innovative planning scheme, which aimed for a better outcome. It was the delivery of all the values embodied in the Port Phillip planning scheme for the site - culture, heritage, design - that had the best chance of 'saving' the Espy.

With the devil in the detail of the new lease, the Esplanade Alliance is not convinced that the sacrifice of Baymor Court will 'save the Espy' nor that this is the last time the Espy will be held to ransom. We hope to be proven wrong.


Krystyna Kynst
Spokesperson, Esplanade Alliance

Esplanade Alliance

Guarding the Heart and Soul of St.Kilda

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This webpage is maintained by Cyndy Vogelsang on behalf of the Esplanade Alliance