The City of Melbourne has given the green light to a significant Central Business District redevelopment proposed by the Marriner Group. This decision comes a year after Lord Mayor Nick Reece, who had pledged not to accept donations from property developers, received a $25,000 campaign donation from the group. The redevelopment plan, in collaboration with Lasalle Investment Management, involves demolishing part of the heritage-listed Comedy Theatre on Exhibition Street to construct a 27-storey tower featuring offices and a 270-room hotel.
Reece, along with councillors Roshena Campbell, Kevin Louey, and Mark Scott—who were all part of “Team Nick” during the election—recused themselves from the decision-making process. Philip Le Liu also stepped aside due to receiving a donation from the Marriner Group as part of “Team Arron Wood.” With only six councillors available to vote, the council narrowly achieved quorum to proceed with the decision.
Controversy Surrounding Donations
The council unanimously resolved to inform the government that it does not object to the application, subject to conditions such as preparing a hotel management plan. The issue of accountability and transparency around campaign donations was a significant topic during the last local government election, with some candidates committing to real-time donor disclosure.
Despite this, leading candidates like Reece, Arron Wood, and ex-footballer Anthony Koutoufides did not adhere to real-time disclosure. Reece, however, requested his donors to sign a form affirming they were not developers. The Marriner Group’s $25,000 donation to Reece’s campaign raised eyebrows, especially when Reece previously stated, “My understanding is that development is not proceeding.”
Development Application and Public Reaction
The development application for the Comedy Theatre was initially lodged in May 2022 and updated in July 2023. Another update was submitted in March 2025, five months after Reece assumed the mayoral office. At a recent Future Melbourne council meeting, the council supported the latest $211 million redevelopment proposal, despite resident objections. The City of Melbourne assessed the application as the referral authority, but the final decision lies with Planning Minister Sonya Kilkenny.
Reece’s campaign raised $950,484 from various influential figures, including business people, trade unions, and developers. The Marriner Group, managing several prominent Melbourne theatres, was one of the largest contributors. When questioned about potentially breaching his promise, Reece defended the Marriner Group, stating, “The Marriner Group is not a property developer – it is the owner of the Comedy Theatre, which made them an interested party in this particular matter.”
Community Concerns and Governance Issues
Resident Jennifer Eltham expressed concerns about governance, transparency, and probity issues, questioning the integrity of the process when large donations are involved. She stated, “How can a community have confidence in a process when the proponent is simultaneously making large donations to the very decision-makers assessing their project?”
“The circumstances create the perception of undue influence and risk undermining the integrity of both the planning system and heritage protection.”
Eltham also voiced concerns for the Comedy Theatre’s future, describing the situation as a “textbook David and Goliath scenario,” where powerful entities negotiate behind closed doors, overshadowing the local community’s interests.
Impact on Local Residents
Eltham highlighted that the inclusion of a hotel in the latest application was a significant change made without notice, raising concerns about the impact on Punch Lane, a small residential heritage laneway. Fellow resident Nicola Smith echoed these concerns, stating that the proposed tower would overshadow the theatre and affect nearby residents’ sunlight.
“It feels like a textbook David and Goliath scenario, or straight out of The Castle: powerful players negotiating behind closed doors while the people who actually live here simply don’t count,” Eltham remarked.
Looking Ahead
As the redevelopment moves forward, the City of Melbourne faces scrutiny over its decision-making processes and the influence of campaign donations. The Planning Minister’s decision will be closely watched, as it will set a precedent for how heritage sites and community concerns are balanced against urban development in Melbourne.
The situation underscores the ongoing debate about transparency and governance in local politics, with residents calling for more stringent measures to ensure fair and unbiased decision-making in future development projects.
