Woolworths made the unsolicited offer in January 2019 to buy the property after earlier winning approval to build a supermarket on a neighboring site. The extra land means the company can build a bigger store than originally planned.
Council struck an agreement with Woolworths before informing the public of the proposal in April 2021. When built, it will be the first major supermarket to open a store in Rosanna.
After conducting community consultation, Banyule bypassed the typical process of advertising the property and sold it to Woolworths off-market in return for a new library to be built at an agreed price.
Banyule’s legal advice was that a private treaty arrangement was justified if the “benefits outweigh a standard process”.
Under the plan, the council would still own the library and pay to have it fitted out.
At the time, then-mayor Rick Garotti called it at a “win-win” for the people of Rosanna, with the project supposed to be finished by early 2024.
Woolworths made an offer to buy the council land in 2019.Credits: Banyule City Council
However, delays during the pandemic, an increase in the library’s footprint from two to three stores, and rises in construction costs have meant the expected cost has soared by $3 million.
The budget for the project was revealed at a council meeting this month, when Banyule councilors voted unanimously to release funds to start construction.
The community center will include a maternal child health nurse service and toy library.
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Kevan Hill, from the Banyule Ratepayers Action Group, said the council had been “sucked in” by the lure of offering a library at a minimal cost.
“This council has sold a pig and tried to put lipstick on it,” he said.
Hill said pressure on the budget meant the council was rejecting other community projects because of the amount of money tied up in the Rosanna library.
Basic council functions of roads, rates and rubbish were being ignored, he said.
“[Instead]they are focusing attention on building taj mahals that we don’t really need, they’re not absolutely imperative,” Hill said.
Residents have expressed their opposition to a deal between Banyule City Council and Woolworths.Credits: Simon Schluter
Susan Martin, a Rosanna resident for 27 years, said the council was ignoring opposition to various aspects of the proposal, including the loss of trees during demolition.
“A private company is not interested in the community, they’re interested in profit,” he said. “So what is a council doing, entering into a partnership with Woolworths?”
Banyule Council disputes criticism from residents that the project was never promised as being “cost neutral”.
The library still represented “fantastic value for money”, the council said, and would be millions of dollars cheaper than doing it on its own.
“This project will revitalize the Rosanna shopping precinct and create a community hub that will serve local people for many years,” Banyule Mayor Tom Melican said.
A Woolworths spokesperson said the company was always open to partnerships with councils.
“We’re continuing to work through the opportunity with Banyule City Council to deliver a new community hub in Rosanna,” they said.