No fresh hope for supermarket

KORUMBURRA is no closer to having a new Michael’s IGA supermarket built in town.
Talks between South Gippsland Shire Council and Michael’s IGA broke down after the parties could not agree on the sale of council owned land to the retailer, to enable an $18 million new supermarket to be built.
Len Morabito, Michael’s IGA general/operations manager, said council had not made an official approach to resume talks.
“As far as we stand, negotiations are off until such time the council comes back to (Michael’s IGA owner) Michael (Lorenz) with an acceptable and realistic deal which meets the commercial needs of our business,” he said.
“As it stands, we will not be making any further approaches to council.”
Last year, Michael’s IGA said it had abandoned plans for now to build the new supermarket at the corner of Commercial and King streets in Korumburra.
Michael’s IGA was seeking to buy council owned buildings, including the former shire offices, in order to build the supermarket.
Council’s final offer was a bank guarantee of $400,000 and a six percent deposit to ensure Michael’s IGA delivered the supermarket in a timely manner.
Michael’s IGA’s offer was $300,000 to be held in trust and a 10 percent deposit.
Mayor Cr Don Hill said a full line supermarket built on the Commercial and King streets site remained a strategic priority of council. 
He said council does not have a preference of which supermarket operator should be on the site.
“Council has a resolution of council but of course will welcome any new approach from Michael’s IGA to progress the development of the supermarket in Korumburra,” he said.

Short URL: http://thestar.com.au/?p=27290

Posted by on Jan 30 2019. Filed under News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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