Victorian developer MAB Corporation will early next year begin remediation works on the 5.8-hectare Brompton gasworks site just north of the CBD, after the company was in January 2022 selected as the preferred proponent to redevelop the prime Bowden location.

Former Liberal Treasurer Rob Lucas chose MAB’s $459 million master-planned village proposal ahead of the Adelaide Football Club’s bid for a new headquarters. At the time, Lucas said the “recommendation [to select MAB] was clear from the evaluation team” and endorsed by the board of Renewal SA.

But the choice of MAB over the Crows/Pelligra HQ plan prompted immediate criticism from the then-Labor opposition, which promised to review the decision if elected.

Now-Treasurer Stephen Mullighan said before the election: “The details of the Crows’ proposal look exceptional and I can understand widespread community disappointment that their proposal was rejected.”

But the Labor Government’s promised review into the Brompton decision – compiled by multinational engineering firm AECOM and handed to the government in September at a cost of $54,425 – formed a different view on the Crows proposal.

A recently published and partially redacted version of the review shows AECOM found the Crows HQ plan had the potential to create offsite traffic problems and did not align with parts of the Bowden urban village plan.

“The AFC/Pelligra approach, with the focus of the Master Plan being on open space (for AFC and public use) and commercial space, was not contemplated in the initial Bowden Urban Village Project scheme or the RFP (Request for Proposal),” AECOM wrote.

“Whilst the extent of ‘green space’ is positive, public access will be restricted, and the commercial/training use will likely generate significant vehicular traffic (potential off-site traffic impacts).”

AECOM’s review instead found the MAB proposal “more closely aligns” with the planning and design code.

It also said MAB “provided the greatest diversity – including diversity of housing product” and “best responded to proposed uses for the existing heritage buildings and structures”.

“The MAB submission has a significantly higher level of detail and is more closely aligned with the RFP requirements, when compared to the two other proponent submissions,” AECOM states.

“MAB had demonstrated the most experienced remediation team (with regard to the remediation of large complex former gasworks sites in sensitive urban environments).”

An aerial render of MAB Corporation’s plans for the Brompton gasworks site, featuring around 600 apartments, 200 townhouses and a 120-room hotel. Photo: Renewal SA/MAB Corporation

AECOM later stated that the “The AFC/Pelligra program for the remediation program is overly optimistic and likely unrealistic, particularly for the required approvals”.

It also cites figures from an economic impact study PricewaterhouseCoopers (PwC) compiled in 2021 which assessed the three shortlisted proposals and found the MAB plan delivered twice the economic impact.

“The PwC review of the MAB construction economic impacts are more than double the other two proposals and will clearly deliver greater job creation and economic activity benefits to the local community and the State during the project’s construction phase,” AECOM stated.

“The PwC review of the MAB and AFC/Pelligra operational economic impacts are similar for jobs (730 and 720 per annum respectively) but there is a large discrepancy in the GVA [gross value added] ($94 million and $46 million per annum).

“The GVA for the MAB project is between 1.5 and double the GVA for AFC/Pelligra project.”

AECOM said the methodology used by the PwC review was “appropriate” and cited it as a reason the MAB commercial offer was “convincing and credible based upon security provided and the improved financial position to the State”.

An artist impression of the open space proposed in MAB’s Brompton gasworks plan. Photo: Renewal SA/MAB Corporation

Planning Minister Nick Champion announced in September the state government would be sticking with MAB as the preferred developer for the Brompton Gasworks, after receiving the recommendations from AECOM’s review.

Before the AECOM review was completed, the Adelaide Football Club announced it would be building its new HQ in Thebarton.

MAB’s $459 million master planned village proposal for Brompton will feature around 600 apartments, 200 townhouses and a 120-room hotel.

The Malinauskas Government says it was able to increase the project’s affordable housing target from 15 per cent to 17 per cent following negotiations with MAB this year.

It also says MAB has agreed to increase the open space component of the village from 25 per cent to 30 per cent.

The 12-year project is expected to house more than 1200 residents when completed.

“Turning this site from contaminated land into a thriving precinct with more affordable housing and green space is a win for the western suburbs,” Champion said in a statement today.

“It will help unlock vital housing supply and ease long-term pressure on the market.

“We look forward to seeing the project come to life in making Bowden an even more attractive place to call home.”