IGA the front runner for new site

A $2.5 MILLION offer to purchase land on Maclean’s Centenary Dr car park to construct a supermarket looks to have grocery retailer IGA in pole position in the race to occupy a store if it is constructed.

The tender to purchase the 3750 square metre site freehold from the council was the only offer it received following meetings with Spar, Woolworths and IGA.

A decision will be made at the council’s Civil and Corporate Committee meeting tomorrow that could see a 10-week car parking needs analysis conducted by IGA.

This would be the first step towards a contract between the council and IGA being drawn up, that could see a grocery store, no less than 2000 square metres in size, constructed on the site.

A condition of the offer, that may see the land purchased by Metcash or one of its subsidiaries on behalf of IGA, was for an exclusive dealing period of 10 weeks.

In this time IGA would undertake the car park needs analysis at a cost of $20,000.

Another condition was that IGA reach a suitable agreement with the council on parking conditions.

At the council’s February meeting it was decided not to accept any tender received and to enter into negotiations with any interested parties, until they were reported back to council.

A report to the council committee, prepared by outgoing general manager Stuart McPherson, said the only firm offer received was from IGA.

In the report Mr McPherson recommended the committee suggest the council enter into an exclusive agreement with IGA for 10 weeks to allow the car park needs analysis to be conducted.

He also recommended that a legally binding relationship between the council and IGA would not exist until a contract was drawn up.

The report also recommended that, when a legal agreement was reached, it was not to be assumed to be an agreement to sell, subdivide or rezone the subject land, or to issue a development approval in connection with it.