It seems to no longer be the “tourist calamity” it once was. For years now, the number of visitors to the iconic Queen Victoria Market seems to suggest the need to seize new opportunities.

In 2014, the state government agreed to donate the 3.2-hectare site to City of Melbourne, and just a few days ago came the announcement of collaboration between the City and the private company Lendlease, “in order to transform the entire shopping area, attract more customers and increase sales”.

This is the largest development project in the history of Victoria’s capital, a $1.7 billion plan to create a new public plaza, ‘Gurrowa Place,’ restore stores along Franklin Street, build an underground parking garage and create a new pavilion called the Queen’s Corner Building.

The proposal also includes a 49-story building for new housing for international students, a 46-story residential condominium and a 28-story office tower.

“Our landmark divestment of the Southern Precinct will transform our city’s north with a vibrant new precinct bursting with uniquely Melbourne experiences – creating an enduring legacy for the Queen Victoria Market for generations to come,” said City of Melbourne Mayor Sally Capp.

“We’re proud to partner with Lendlease to deliver on our commitment to secure the market’s future and maintain a focus on parking for traders and customers.”

For Tom Mackellar, Landlease’s managing director for development, the creation of Gurrowa Place, “begins the next chapter in the evolution of Queen Victoria Market”.

“It will celebrate the rich history of the place, while introducing new spaces for the community and a vibrant precinct that welcomes locals and visitors,” he added.

The City Council has said the new plaza would create one of the largest open spaces in the CBD, yet the project has already been bitterly opposed by a group of shoppers and merchants.

Rosa Ansaldo of Rospaul Fresh Fruit

“We don’t know where we would be able to park our trucks, for example, and customers will no longer have direct access to the market,” said Rosa Ansaldo, who has been at Queen Victoria Market with her fruit and vegetable business, Rospaul Fresh Fruit, for more than 35 years.

“It feels like we’ve gone back in time,” she adds.

“We had electrical outlets, now we have extension cords everywhere. We had a faucet, now we have a pump. I think the project will hold back a lot of families from going back to the market for groceries, the new parking will particularly hurt us.”

City of Melbourne, however, insists that “there will be no loss”.

Rather, they claim the precinct will unveil an underground parking lot with 220 parking spaces for market customers and 80 spaces inside the office building.

Currently, there are also 500 customer parking spaces already available in the Munro building at the corner of Queen Street and Therry Street.

But for Mary-Lou Howie, president of the Friends of Queen Victoria Market, a structure in the public domain is being “cannibalised.”

“This is a conflict of interest for City of Melbourne, as owners, managers and custodians of a site that is part of our state’s historic heritage,” she said.

“We have already lost a third of the merchants, and I think the whole project will end up jeopardising the work of so many others.”

For Howie, the critical issue is the sudden relocation of the warehouse used by the merchants. Furthermore, the businesses have been asked to vacate the current warehouse by December 31.

“At the moment, we still don’t know where we will be relocated, or how much space we’ll have,” said Frank Fontana, owner of the fruit and vegetable business Fontana Brothers.

“Furthermore, the relocation costs will be borne by us. These are major changes for stores like ours,” he added.

In contrast, plenty of merchants believe the Queen Victoria Market’s facilities are out of date and dilapidated, making their work untenable.

Some members of the Tripaldi family, owners of Queen’s Harvest and Market Juice. From left: Natalie, Giovanni, Annmarie and Rocco

“This immense project, though complicated, will lead to a new period of splendor. As difficult as it is, it is a necessary step,” said Rocco Tripodi, owner along with his family of Queen’s Harvest and Market Juice.

Until the end of last year, he was also a member of the Trader Representative Committee.

“It doesn’t always have to be all bad, we need additional and updated services, hot water and safe facilities - we need to keep up with the times.

“Queen Victoria Market has a wonderful building, and I certainly wouldn’t want to see its historic value distorted, but even consumers today are demanding more sophisticated facilities,” Tripodi added.

“The market’s iconic impact is deeply recognised. We should just look to the future.”