A residential and commercial development on a former school playground will proceed following an agreement between the City of Melbourne and The Mackie Group.

The council purchased the former JH Boyd Girls’ High School heritage site for $10.5 million in 2007 to redevelop into a community facility.

Following a proposal from The Mackie Group, the City of Melbourne has agreed on an $8.5 million purchase price, where land ownership will transfer to Mackie once construction commences.

Mayor Robert Doyle said the proposal process was put together to ensure that the sale of this section of the Boyd site would lead to a “quality development” that would add to the community centre and urban park.

The site’s future is close to being finalized with the council’s conversion of the adjacent heritage school building into a community library and civic centre underway, Mr Doyle said.

The Mackie Group CEO, Ralph Mackie said a consortium of some of Victoria’s disability and community organizations worked closely with Mackie as well as both federal and state governments on the proposal for purpose designed apartments for the disabled.

Mackie has a period of approximately 12 months to finalise the development proposal, obtain planning permission and construction preparation under the development agreement.

Multiple Sclerosis Limited Australia and Scope led six community agencies, along with The Mackie Group, Haven; Home, Safe authored the proposal for a 100 metre residential and commercial redevelopment of the Boyd site adjacent to a community centre, library and urban park.

The Boyd School building refurbishment into a community centre and library is expected to be completed by mid-2012.