Perth's Old Treasury Buildings will be the centrepiece of a major redevelopment of the St George's Cathedral Heritage Precinct Area.
Premier Colin Barnett said the project would bring many benefits to Perth's Central Business District.
"This development is long overdue. Successive governments have for many years debated the future of the Old Treasury Buildings and the best solution is to examine the broader area in which they are situated," Mr Barnett said.
"The buildings are in a fantastic location, close to other heritage sites including St George's Cathedral and the Deanery, Perth Town Hall and Government House.
"We believe this development is the best way to make the area more attractive and commercially viable."
The Premier said co-operation between the State Government, City of Perth, the Public Trustee, the Anglican Diocese of Perth, developers Mirvac and CBus Property, as well as hotel owners and operators Aman, would enable a number of construction and development projects to go ahead on site.
The Government had agreed to commercial terms with the Mirvac/CBus Property consortium and was in the final stages of negotiating detailed legal conditions contained in the formal Development Agreement between the parties.
"The State Government has agreed to enter a 99-year lease at terms above the market rate which will see the State pay a premium rental, which in today's money is $102million over 25 years," Mr Barnett said.
"The agreement deal does not require any up-front payment by the Government but facilitates the redevelopment and ensures Perth upholds its heritage values."
The vision for the Cathedral Heritage Precinct includes:
· redevelopment of the Old Treasury Buildings site, including a new 29,000sqm office tower and a boutique hotel in the heritage listed buildings
· demolition of the Law Chambers Building to enable development of a new City of Perth Library
· full refurbishment of the Public Trustee Building to deliver an 8,000sqm office facility
· underground parking to service all the buildings.
Minister Assisting the Treasurer Bill Marmion said demolition of the Law Chambers Building would open up a public area that had for years been effectively blocked by the Law Chambers Building.
"The result will be more open space and better access between St Georges Terrace and Hay Street and the beautiful architecture of the former Lands Title Office will become visible from the street," Mr Marmion said.
"The developer will be required to retain public access to the ground level of the Old Treasury Buildings so they can continue to be appreciated by the public for years to come.
"The State's undertaking to lease close to 37,000 square metres of office space in this development is a key element in the Government's long-term office accommodation plan and would make for an ideal justice precinct."
Office of the Premier - 9222 9475
Office of the Minister Assisting the Treasurer: 9222 9111
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