Giralang residents have been forced to wait even longer for a shopping centre in the suburb, after the development failed to sign on a major supermarket to the project.
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In a letter to residents, developer Dimitri Nikias said the shopping centre would not be feasible without an anchor tenant such as a supermarket.
The developer says other options for the site are now being explored.
The multi-million development was slated to include a 1000 square-metre supermarket along with several other shops and 50 residential units.
Residents of the Belconnen suburb have been without a shopping centre since 2005, after the old shops closed to make way for a redevelopment.
Mr Nikias told The Canberra Times a major supermarket was close to being signed on as a tenant after negotiations and had accepted an initial offer, but the proposal was then rejected by the supermarket.
While the developer did not say which supermarket was set to go into the centre, he did say it was "one of the two majors".
"Unfortunately, I can provide the water, but I can't bring the horse to drink," Mr Nikias said.
"We have thrown every resource and incentive I could give.
"Imagine if the development proceeded and it went ahead without a supermarket. Residents would be disappointed with the development."
Residents and community groups were recently told of the situation in a letter from Mr Nikias outlining why the development would not be going ahead for the time being.
"This was a big blow to both us and the local community," the letter said.
"We will continue to pursue a national supermarket operator, as the current circumstances have demonstrated how vital they are to the local community."
While the developer said the supermarket backing away from the development was disappointing, Mr Nikias said he was still optimistic about the shopping centre still going ahead.
"I don't feel like it's completely lost, but we had to communicate [the decision] with the community because they deserve to know what's going on," he said.
"I think we've got a better chance in the next financial year."
After many stalled attempts to get the centre up and running, ACT Planning Minister Mick Gentleman fast-tracked the development in mid-2018 using special powers.
At that time, it was expected the supermarket would open in the fourth quarter of 2019.
Mr Nikias said he did not believe the decision made by the supermarket to back away from the development was driven by the impact of coronavirus.
"If anything, the virus has shown us how vital our services of local shops and supermarkets are," he said.
Residents in the suburb have also expressed disappointment at the decision.
Giralang Residents Action Group member Bill Burmester said those in the suburb had been waiting too long for their local shops to come back.
"The residents have been fighting for 15 years to get the shops," he said.
"Consistently, the stumbling block has been the 1000 square-metre limit [for the supermarket]."
Andrew Brown
I've been part of the Canberra Times since 2016, after reporting at local papers in Sydney's north-west. Since starting at the paper I've had stints on the Sunday Times, on the early morning breaking news round, and now as a general reporter, covering the ins and outs of anything and everything happening in Canberra, with a focus on health.
I've been part of the Canberra Times since 2016, after reporting at local papers in Sydney's north-west. Since starting at the paper I've had stints on the Sunday Times, on the early morning breaking news round, and now as a general reporter, covering the ins and outs of anything and everything happening in Canberra, with a focus on health.
