“A serious safety risk”: What’s next for Carlton’s most notorious eyesore?

A decade after the former Cancer Council building in Carlton was sold to private interests, the prominent corner site remains in limbo. However, its ongoing deterioration is now triggering calls for urgent action

Boarded up, riddled with graffiti and frequently breached by squatters with cutting tools, it’s become a painful symbol of impasse – between what was, what could be, and what to do in the meantime.

Situated at the gateway to the World Heritage Environs Area surrounding the UNESCO-listed Royal Exhibition Building and Carlton Gardens, the building at 1-23 Rathdowne St sits within one of Melbourne’s most sensitive and scrutinised planning zones. And yet its current state continues to frustrate residents, challenge authorities and, increasingly, raise questions about how to break the deadlock.

At its core, the situation is a tangle of planning constraints, regulatory thresholds and diverging views over what’s acceptable for such a prominent heritage-adjacent location. While everyone agrees the site can’t stay as it is, reaching consensus on what should replace it – or even whether the current structure can come down – has proven painfully difficult.

In 2022, a proposal to replace the existing structure with seven three-storey townhouses, a six-storey corner podium, and a 13-storey tower containing 77 apartments was rejected by the City of Melbourne.

Councillors cited its scale, bulk and amenity impacts as inconsistent with the local planning scheme. The matter later progressed to VCAT, with the Carlton Residents’ Association (CRA) advocating for a much-reduced height outcome, but no permit has been granted. In the absence of an approved development, a demolition permit can’t be issued. And so, the status quo remains.

For the building’s owner Chinese tycoon Wang Hua, who purchased the site in 2013, the saga has been long and costly. There have been attempts to submit proposals for temporary uses – including ideas of a pop-up park or a short-term carpark – but nothing has so far gained traction without that elusive planning permit.

The developer is also understood to be frustrated over perceived inconsistencies in planning outcomes. Developments within or adjacent to the same World Heritage Environs Area – such as the 11-storey expansion of St Vincent’s Hospital at the corner of Nicholson and Victoria streets, and the twin 59- and 61-storey towers of the Shangri-La on La Trobe St – have been approved, leading to questions over how height controls are applied.

And these planning controls have only been strengthened. As Inner City News reported in April, Minister for Planning Sonja Kilkenny gazetted new heritage preservation plans for the Royal Exhibition Building and its surrounding buffer zone, leaving no room for compromise on building heights.

Neighbouring property owners are also feeling the impact. One resident has seen their own building repeatedly vandalised and has pushed for demolition and redevelopment to help protect it. Inner City News understands that despite attempts from the developer to erect a hoarding that would protect its neighbour or explore other interim uses, no solution has been agreed with the council.

The site itself carries its own layer of history. From 1888 until 1971, the corner was home to the six-storey Queens Coffee Palace – one of many grand, temperance-era establishments built for Melbourne’s centennial exhibition. It was ultimately demolished during an era of widespread heritage loss across the city, and the current structure – once home to the Cancer Council – replaced it soon after.

The building’s location adds complexity. Nestled within a heritage buffer zone and adjacent to a national landmark, the council has consistently emphasised the need for development outcomes that respect the area’s character and cultural significance, while the CRA has called for action that restores the precinct’s amenity.

Now, as the site slips further into disrepair and police warn of ongoing hazards due to repeated squatting, the urgency for a solution is growing. You’d imagine any reputable building surveyor would confidently deem the site a significant public safety risk.

“The former Cancer Council building is one of the great eyesores of the city,” then Deputy Lord Mayor Nick Reece said in 2022. More recently, the now Lord Mayor told the Herald Sun he would consider tools such as higher rates or special charges to encourage action from owners of derelict sites.

But others have argued this approach may not be enough. In a letter to the Lord Mayor this month, CBD resident and former EastEnders president Jenny Eltham called for more proactive use of the City of Melbourne’s “full statutory powers” under the Building Act 1993.

Ms Eltham pointed to the building’s deteriorating condition, history of health and safety complaints and proximity to a World Heritage site as reasons for stronger enforcement, urging the council to consider issuing an emergency order.

Under Section 102 of the Act, emergency orders can be applied if a building poses a danger to life or property. The council can issue an immediate order requiring evacuation, securing of the premises, or even demolition.

“This building has remained in a visibly dilapidated and dangerous state since its sale in 2013 and now presents a serious risk to community amenity, safety, and health,” Ms Eltham wrote.

“Without active enforcement and the use of the full powers available to council, under the Building Act and local laws, the cycle of neglect will continue.”

Many believe that such drastic action may be warranted, with fears that it is only a matter of time before a major accident occurs on the site – leaving all involved with a major liability to ponder.

The council appears more open than ever to finding a collaborative way forward, but the frustration is clearly evident.

In a response to a series of questions from Inner City News, Cr Reece said, “enough is enough – we want to see [sites like this] cleaned up, activated or redeveloped”, and pointed to recent “success stories” such as the Job Warehouse on Bourke St and the Duke of Kent Hotel on La Trobe St.

“It’s unacceptable that some buildings in our city have fallen into such disrepair they pose a risk to the community,” the Lord Mayor added.

“We will explore stronger measures – whether that’s higher rates, special charges or other tools – to tackle the city’s worst derelict sites.”

Cr Philip Le Liu, who serves as the council’s deputy portfolio head for planning, said the council remained open to working with the site’s owner.

“Owners should really consider these buildings or sites in the interests of everyone,” he said.

“We continue to offer numerous opportunities to work with owners to reach a win-win outcome and will consider every option available to have sites fixed up for the good of Melbourne.”

That spirit of cooperation may yet be the circuit breaker this site needs. However, Inner City News understands the owner is now considering selling – a move that could breathe new life into the site but only add to delays as a resolution continues to be sought.

It’s understood that council officers are now actively working with the owner to assess demolition pathways, should a more suitable interim use be proposed. But given the legal barriers that remain, patience is wearing thin.

Ultimately, it’s a question of balance. The community wants to see progress. The site’s owner wants certainty. The council wants to protect heritage, ensure good urban outcomes and avoid setting unhelpful precedents. These are not incompatible goals – but they do require flexibility and a bit of pragmatism.

The site’s owner was contacted, but told Inner City News that they couldn’t comment at this time. •