The ABC says it has no plans to sell or redevelop its Dickson studios, despite new planning rules allowing 13-storey developments at the landmark site.
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The public broadcaster's stance could scupper one of the key planks in the plan to reshape Northbourne Avenue and Federal Highway in the coming decades.
It could also cost the ACT government millions of dollars in revenue, given the ABC does not pay commercial rates.
New planning rules finalised earlier this month mean 13-storey developments would be permitted on parts of the 1.5 hectare site, which occupies the north-eastern corner of the intersection of Northbourne Avenue and Wakefield Avenue.
The strategy earmarked the MacArthur/Wakefield intersection to accommodate the corridor's tallest buildings, envisioning high-rise developments which "stand above the treeline and punctuate the skyline to make a positive contribution to the shape and character of the approach route into the city centre".
But the ABC's corner of the intersection is set to remain undeveloped after a spokesman this week said the corporation had "no intention to either sell or develop the site".
The decision not to sell to private developers means the ACT government will continue to miss out on a potential revenue windfall, because the ABC, as a Commonwealth entity, is exempt from paying commercial rates.
If the site was redeveloped with offices, the rates bill would likely be significant, based on the amount paid by the owners of the office block opposite the ABC.
Evri Group in February revealed the commercial rates bill at 220 Northbourne Avenue had increased from $100,000 to $1.4 million in the past three years following a re-evaluation.
Appearing at the ACT Assembly's commercial rates inquiry, Evri Group finance manager George Cassimatis said the company felt pressured to redevelop the nine-storey office block, which is leased to ACT government tenants, including the valuation's office, into a high-rise apartment development.
Dickson Residents' Group convenor Jane Goffman was concerned the ABC site would eventually be sold and redeveloped.
Ms Goffman said any buildings above 10-storeys would block the view to Black Mountain.
"The [new planning rules] have been thrown together without adequate professional scrutiny of the modelling and heritage impacts," Ms Goffman said. "The vista is a key part of the Griffins' design and the height controls contained in the amendment for this one particular intersection will destroy it."
A spokesman for the ACT government said it was up to the ABC to decide on the future of the site.
"The [City and Gateway] strategy allows for redevelopment in the future, but ACT Government does not require it to happen," the spokesman said.