The expression of interest was part of the First Right of Refusal (FROR) process, which provided an opportunity for government entities to purchase the site off the current owner, the Victorian Government. The FROR process stipulated that a purchase via this process needs to be linked to the future use of the site for community purposes.
The FROR process comes following the closure of Dhurringile Prison by the Victorian Government in 2024, due to declining low security prison populations since the pandemic.
Council engaged Urban Enterprise to prepare an options assessment for Dhurringile Estate to assist with determining Council’s formal position on the site. The report assessed the potential uses for Dhurringile, including potential costs, benefits, risks and operational impacts associated with the purchase.
After reviewing the options assessment and considering the Government’s intention to impose a community purposes restriction on the sale, ensuring no commercial profit is made from that use, Council Officers recommended Council did not progress with the purchase of Dhurringile Estate. This recommendation was supported by the overall organisational financial risks and liabilities associated with the purchase.
“At this particular point, Council will not be pursuing anything further with Dhurringile Estate. This presents an opportunity for someone else to consider purchasing the site,” Mayor, Councillor Shane Sali said.
“The decision made at the Council Meeting also acknowledged that Council would support where possible, and outside of the First Right of Refusal Process, suitable private investment opportunities that could benefit the region.”
