Developers looking to secure the land behind a large West Belconnen shopping centre will have to show they can complete work to limit the risk of flooding.
The ACT government has opened up a two-stage expressions of interest process for the sale of land behind the Kippax Fair shopping centre.
Engineers identified contamination on the site in a pre-sale assessment, which means an accredited environmental auditor will need to assess the risks the contamination poses to potential development.
The report, prepared by JPS Engineering, also recommended a full ecological assessment of the site, with a focus on areas that are potential habitats for Superb Parrots, listed as a vulnerable species.
The engineers also said a more detailed review of the pipe capacity on Hardwick Crescent was required to determine whether drainage upgrades were needed to prevent the risk of flooding.
The government had kept secret an earlier report that warned of heightened flood risks at the site until it was rezoned to allow for residential and commercial development.
The report warned further development of the Kippax group centre "may exacerbate these existing flooding issues and introduce more people close to the flooding risks if the recommended mitigation measures are not undertaken".
The ACT has now listed flood mitigation as part of offsite works that will be required on the land, formerly used as playing fields, government documents show.
Expressions of interest for the site are due next month.
The sale of land could pave the way for the Kippax group centre to become the ACT's largest, with a consultant's report finding three full-line supermarkets can be supported in the fast-growing area.
"If the expansion were to proceed, the Kippax group centre would accommodate over 15,000 [square metres] in retail floorspace, making it one of the largest groups centres in Canberra and the only one to be anchored by all three major supermarket operators," the report, prepared by Macroplan, said.
The Christodoulou Group, which owns Kippax Fair, had earlier applied to the ACT government for a direct sale of the land, but the application was blocked.
The ACT government found the group was not eligible for the direct sale of the land.
"The ACT government will now proceed to sell the land to the market through a competitive sales process. Due diligence will be undertaken in the coming months in preparation of the land being taken to market," a letter from the ACT government to the Christodoulou Group said.
The Christodoulou Group presented its plans for a redevelopment and expansion of Kippax Fair, if it wins the tender for the site, to the Belconnen Community Council in March.
A 2015 draft master plan for the Kippax group centre recommended redeveloping open-air car parks, which both a 2015 flood study and the updated 2020 study found presented no flooding risk.
But an updated 2019 masterplan instead switched the preferred expansion site to the land behind Kippax Fair,
"The centre core precinct will be expanded to the east over part of the existing Holt District Playing Fields to support retail expansion in the centre. This precinct will also be encouraged to retain a diverse mix of retail, commercial, professional and community services, including Kippax Fair," the 2019 masterplan said.
The ACT government expects to notify potential developers of a second stage or next steps early next year.
