Springs development halted again
WORK on the troubled St George Springs development has again been halted after the Building Services Authority was granted an injunction in the Supreme Court because of claims Mladen (Michael) Kljaic - former MKM Group manager - is involved in a project at 9 Natalia Crt, off Yangan Rd.
Mr Kljaic's MKM Construction went into liquidation and MKM Group went into receivership last year after Southern Downs contractors came forward and said they weren't being paid - some to the tune of ten of thousands of dollars.
Mr Kljaic cancelled his building licence in August last year and is a permanently excluded individual by the BSA but retains a site supervisor licence which allows him to supervise the performance of building work while employed by a licensed builder.
BSA general manager Ian Jennings said the entities involved in the project were now prevented from building and from "counselling, procuring or aiding any person to carry out building work" at the address.
He encouraged anyone with information that Mr Kljaic was acting as an influential person in a building entity to contact the BSA's Compliance area on 1300 272 272.
Mr Jennings said the BSA would seek permanent injunctions at the site and at other sites controlled by the entities Pera (Qld) Pty Ltd, HIC International Constructions Pty Ltd, Homes Industrial and Civil Pty Ltd and QState Civil and Drainage Pty Ltd, and would start appropriate action regarding the companies' licences.
The Daily News yesterday contacted Mr Kljaic regarding the injunction but he refused to comment, only giving unpublishable abuse in response.
Mr Kljaic bought the site in 2006 for $3.259 million. St George Springs was supposed to be a $110 million residential development with 226 homes, a shopping precinct and childcare centre, but to date only a fraction of the houses at the Yangan Rd site have been finished and sold.
In August last year, Mr Kljaic told the Daily News he didn't believe the retail arm or the childcare centre would happen and blamed his bank for his failure to pay contractors promptly.
"I've suffered more than anyone," Mr Kljaic said at the time.
He said the development at St George Springs was "definitely going ahead," but he would have nothing to do with it.
Southern Downs Regional Council is also taking legal action, although the specifics of the case have not been revealed.
Timeline
- 2006 - Michael Kljaic's MKM Group buys the St George Springs site for $3.259m.
- March 2009 - application for tavern on the site is refused.
- April 2009 planning permission for the retail arm is approved by council.
- June 2010 - murmurings from local contractors who say they've not been paid.
- July 2010 - scheduled date of completion for retail arm passes and work is not commenced.
- July 2011 - receivers are called in for MKM Group.
- August 2011 - MKM Constructions goes into liquidation and Michael Kljaic cancels his building licence.
- September 2012 - BSA gets an injunction to stop work at the St George Springs site after claims Michael Kljaic is involved as an "influential person" in the project.