The State Government will involve the Port Adelaide community in developing fresh plans to regenerate the historic area and will terminate the development agreement with Newport Quays to make way for this new approach.
Premier Jav Weatherill announced the change following a meeting of State Cabinet today.
"The number of closed shops and hotels in what was once a thriving and bustling centre illustrates the urgency of revitalising the Port and the need for a different approach," Mr Weatherill said.
"We want to reinvigorate Port Adelaide to be a place where more people want to be.”
"The ingredients are there - the waterfront, heritage buildings, an active local community and a precinct that is steeped in history.
"The development approach from 2001 was to focus on waterfront development expecting that private investment in the Port Centre would follow.
"That approach hasn't achieved the level of success expected.
"Our new approach to the Port's revitalisation will build on the connections between the Port centre and the waterfront and master plan the entire precinct in order to bring economic and cultural renewal to the Pore centre.
"Above all - we want genuine participation by the local community in the master plan.”
"The State Government and the council need to work together with the community on a plan for the Port that provides confidence to the community, business and investors."
Infrastructure Minister Patrick Conlon said the Land Management Corporation would terminate its project development agreement with Newport Quays Consortium, the private developer involved in redeveloping parts of the Port Adelaide waterfront area.
"Times and thinking have changed since the waterfront redevelopment project was planned and a new precinct-wide approach will provide the best results for this historic area," Mr Conlon said.
The Government will be required to pay the Newport Quays Consortium $5 million plus marketing and design costs incurred by the Consortium for the two incomplete stages of the development agreement, estimated to be around $900,000.
"Although there is a cost, it is small by comparison to the benefits of master planning our historic Port," Mr Weatherill said.
"Importantly, the community and Port Adelaide Enfield Council will be asked to be part of this process.
"I want the State Government to work directly with the community for the renewal of the Port."
The State Government will discuss with the Council establishing a steering group.
"An essential role for the Steering Group will be running a broad and constructive community engagement," Mr Conlon said.
"The outcomes of the engagement will be used to create a master plan across the Port Centre and waterfront."
All development in the precinct will be reviewed by an independent design panel to be established through discussions with the Integrated Design Commissioner.