Little India traders in Dandenong fear they are set to “lose everything” in the face of soaring rents and a $600 million redevelopment of the iconic 30-year-old shopping strip.
In an open letter to Premier Jacinta Allan, the Little India Traders Association states it is set to launch a public campaign to “save our precinct”.
Business owners gathered in the eerily-deserted Foster Street retail strip on Tuesday 27 August to demand Allan and Multicultural Affairs Minister Ingrid Stitt meet with them.
Top of their concerns was that their Government landlord Development Victoria has proposed a sizeable rent hike – up to double in some cases.
LITA spokesperson Sudesh Singh questioned whether this was a “planned deterrent” for the traders.
“This move directly contradicts a previous commitment made by the Andrews Labor Government that rents would not be increased until the precinct’s redevelopment was complete.
“The unexpected hike in rents adds another layer of financial strain on our already struggling traders.”
They feel “neglected” and “disheartened” by the Capital Alliance $600 million proposal to rebuild the area, including 470 new homes, apartment and office towers, a supermarket, food market hall and community spaces.
Building is yet to start across the seven stages – with each stage subject to a development plan and planning applications.
“(The redevelopment) offers nothing for Little India’s actual preservation or support,” Singh stated.
“Our traders and their families have invested their lives in their small businesses.
“The government has failed to consider that many of our traders have taken out business loans and mortgaged their properties to survive the economic hardships brought on by Covid-19, all while facing rising costs of living.”
During building, traders are expected to be relocated to a temporary site.
Among their unanswered questions is when they need to relocate and who will compensate them for business losses during that period.
“It is incredibly disappointing that, after 30 years of dedication, our traders now face uncertainty and darkness due to the government’s neglect of Little India,” Singh stated.
“We would like to know whether the Government intends to save this precinct or let it be destroyed.”
Little India was compulsorily acquired by the State Government as part of the Revitalising Central Dandenong project two decades ago.
It was effectively closed down for several years during road closures and reconfigurations, sparking protests by struggling traders on State Parliament steps.
Despite bright marketing and signage, the retail strip has struggled to recover.
A State Government spokesperson said the Government had provided traders with “significant support” for several years, including rental relief and mentoring sessions.
“We’ll continue supporting traders and working with them on their options for remaining in the precinct.”
Some of the support included a relocation strategy for some businesses to available shop fronts in the precinct.
“The brand-new Little India precinct will offer modern facilities, enhanced services, and improved spaces for traders, creating more opportunities for their businesses to grow.
“Dandenong is booming and we’re ensuring more homes and jobs are created closer to public services, so local families can access everything they need, close to where they live.”
