State Heritage Convention

Adrian Fini
Managing Director, Fini Group
"An Investment in Time - A Developer's Perspective"
Originally presented at the 1999 State Heritage Convention

Fini Group is a family owned, Perth based, property development and construction company. We are involved in medium density, urban renewal, retirement villages, tourism, commercial and industrial developments. Fini Group's interest in heritage buildings really stems from our vision and direction. As William Shakespeare so aptly put it, "What is the city but its people".

To be successful developers, in the niches we are interested in, we require a "great" city. A city where people choose to live. We believe that the retention of heritage buildings is a vital ingredient to this vision. Since the early 1980's many towns and cities within Australia have moved to "rebuild cities", to move towards an improved quality of life. We have stopped and looked back at our modernist and, motor vehicle based environment and realised we have created a global scare.

As we rebuild our cities we need to "gather around" and "encompass" heritage places to encourage and stimulate an improved city and urban fabric. Something that people will identify with and seek comfort in, as well as recognise cultural diversity. We believe that preserving heritage buildings makes for a better city, therefore an improved marketplace. It ensures that our past is preserved for future generations.

And at Fini Group, we believe that it is a vital part of our training as developers. Heritage projects force us to think harder. We are challenged by working within very different parameters. As poet or sculptor works alone to create a work of art. He or she has a vision, and uses their talent to express their artistry without external influences with the possible exception of inspiration from other talented artists. Commercial viability is not considered until the piece is completed. One then hopes that there is an appreciation for the work and a market for it. The artist hopes to leave a legacy, which contributes, to the artistic culture of the community.

While trying to achieve the same final result, this process is the exact opposite of the scenario Fini Group faces when contemplating renovating a heritage building. As a passionate developer, we are caught between the purely artistic and the harsh reality of commercial decisions. We have learnt to be very cautious before risking venture capital on derelict buildings. Industrial buildings are probably one of the greatest challenges to a developer sensitive to the heritage issues, because they have often been left to run down for a long period of time. Therefore, you are coming from a negative position before you even start.

We have learnt that these types of projects are costly in both time and money. They require considerably more intellectual effort than tilt up construction. Much analysis is required up front in quantifying the maths and construction costings. No matter how well you do it, you will always discover surprises you never anticipate. You have to plan for the unplannable and the only thing you can count on, is that it will take more time and cost you more money than was expected.

Let's look at why heritage projects take so much more time. Unlike the poet or sculptor, we don't work alone. Developers are a subset of the big system attempting to reign in the reality of the mass market, numerous government departments, bankers, joint venture partners, politicians, communities and egos. When attempting a heritage project, you also have to plan for the extra delay in dealing with many authorities. This slows down your thinking and the decision-making process itself.

At every stage, there is more time involved. The process is slower and more difficult because you've got authorities deciding what you can do with the property, both internally and externally. Council and heritage are asking you for answers, while you are asking them for decisions. Our experience is that heritage requirements can be open to interpretation and that they can and do change from council to council. What we have are councils with their heritage opinions working within a state act and that opinion can vary not only from council to council, but between the staff within the authorities. So the experience you gain from one project is not necessarily transferable to another project with another council.

Over the past 10 years, Fini Group has been involved with 12 heritage projects. I would like to share with you some of the case studies.

Boans Warehouse
Believed to date from early 1900's, the derelict warehouse was once the most prominent commercial landmark in East Perth. It was a furniture factory for Boans, one of WA's first retail chain stores. The Boans enterprise was sold to Myer and this is the only known building left in WA bearing the "Boans" name. The East Perth Redevelopment Authority took over ownership of the buildings which occupy half a street block and, after consultation with the Heritage Council of Western Australia, agreed to offer the site for sale by public tender in 1994, encouraging the upgrade and conversion of the building for residential and mixed tenancies.

Fini Group was the successful bidder and subsequently took on the project with much enthusiasm and, in conjunction with the Heritage Council of WA, came up with a scheme to convert the old warehouses into 50 residential units using the design creativity of architect, Michael Patroni. The resultant development retains all of the facades and the basic structural frames and form of the original building, and created living units within this volume with lots of light and space in an industrial theme. There are diverse range of loft style and studio apartments truncated by two terraced areas. The apartments range in size from 64m2 to 21m2 and from 1 bedroom through to 3 bedrooms.

The redevelopment of this important industrial landmark has preserved for future generations a piece of our history that has now past in a more meaningful way than a few photos could possibly ever do!

Fitzgerald Hotel
Closed in 1984 and purchased by the Catholic Church, this hotel had very bleak conservation prospects when, in 1991, the HCWA became involved in looking at options for the conservation of the place. The land had been bought with a planning requirement to widen Fitzgerald Street by 5 metres and, consequently, a condition of sale was demolition of the main facade of the building. The building had already suffered extensive demolition when Fini Group expressed an interest in restoring the place.

The HCWA simultaneously commenced negotiations with the West Australian Planning Commission to remove the road reserve requirement. A process that resulted in a review of the whole road reserve restriction in Fitzgerald Street and its consequential removal. This was just one example of the lack of coordination between government departments.

A package of incentives were negotiated with Fini Group... in accordance with the provisions of the Heritage Act. This process again involved negotiations with various other government agencies and allocation of special funding to secure the conservation of the building. The total package including removal and reinstatement of building rights within the previously declared road reserve was estimated to be worth $245,000(?).

The Fitzgerald Hotel started life as the Clarendon Hotel in 1885. However, the present building was constructed in 1925 and continued to operate as a hotel up until 1989. The conservation approach involved retention of all facades and the primary internal spaces. However, the HCWA allowed demolition of some walls in the south wing on the proviso that the north wing was kept intact. The building remains a landmark in Northbridge and has exercised a strong influence over the design theme used in the adjoining Fini development on the old PCC dept site. The total cost of the redevelopment is in the order of $2.6 million. A current market value is not available but we can confirm that the return on this project was less than minimal.

E-Shed Fremantle
The E-Shed was originally built on the harbours edge at Victoria Quay Fremantle Harbour. It is a very beautiful "shed", an example of Victorian industrial harbour architecture that sat alongside similar buildings of like quality. The Fremantle Port Authority harbour plan required E-Shed to be relocated or removed. The building had weathered considerably on the outside and termites had been present over the years. Internally, the hardwood columns and Oregon trusses were in remarkably good condition.

It would have been a sad day for us all if it was removed so we decided to try and relocate the building. Our original intention for E-Shed was not to create a "markets" concept, our preference was for office, retail, and residential use. Some of the authorities however would not agree so we ended up developing a retail market and office project. The shed was photographed in its original form before it was dismantled and then re-erected in its new location. (Piece by piece... ).

I have been asked to comment on any difficulties we have experienced as a result of there being little coordination of heritage interest in Western Australia. A classic example of this lack of coordination was when we embarked on the depot site and the Fitzgerald Hotel redevelopment, the government was spending thousands of hours and millions of dollars planning the Northbridge Tunnel project. The western exit of the tunnel was going to end up in John Street - into Northbridge's only potential heritage place. We commissioned engineers to re-design the exit ramps and reconnect into James Street off ramps.

After a submission to the Minister signed by the Catholic Church, and us the authorities listened and amended their designs. This meant that one government department was designing the tunnel, which would have gone through the heritage precinct. Another improvement to this process is not just co- ordination between government departments - but also more education.

We study heritage renovation overseas. We have the ideas and the vision. A smart architect has the ability to convert those ideas into reality. You can do it. But a heritage person with no training may tell you that you can't do it. I've seen it, I know you can do it but they've never seen it and can't understand what we're trying to do.

On any project, well-trained professional staff make the process easier and faster. When you have professionals, they help you make logical decisions but when they're unsure, they make you unsure. Ideally, we would like to see more education not of heritage staff but of other staff within the various government departments such as Planning and Main Roads. Ideally, they would be trained to see the best in the world and to know what can be done. To understand respect for buildings in a heritage sense rather than slavishly reflect the exact past. What we would like to see is they educating the applicant ... instead of the other way round.

It may have surprised you to learn that many of these projects were financially disappointing. But we believe that a lasting contribution has been made to the community and, to our education. We believe we have contributed to the preservation of our culture. And we have become better developers because of these projects. Ultimately, for us, they have been an investment in our community and an investment of our time in both the future and the past.