Perth wheel to close

The Perth Observation Wheel will stop turning on May 2 after operators and the City of Perth were unable to reach an agreement on its future.

Perth Lord Mayor Lisa Scaffidi said this morning that World Tourist Attractions were seeking a five-year lease extension at the foreshore, which was not possible with the late 2011/early 2012 starting date flagged for the Perth waterfront redevelopment.

Ms Scaffidi said operators were also keen to move to Barrack Square with a wheel about 5m smaller in diameter.

However the council ruled it out because the site was not big enough.

Ms Scaffidi said other possible sites such as the Supreme Court Gardens and Langley Park were also deemed unsuitable.

"They need to justify the expense and guarantee a five-year lease period, which of course we can't give given the fact that we've got the announcement confirmed by the Premier now that (the waterfront redevelopment) will commence just after CHOGM," she said.

"We can't find another location that’s as amenable as the current one."

Ms Scaffidi said it was a disappointing outcome.

"It's disappointing because I love it," she said.

"People will notice that it's gone and it will be bare without it and I am extremely disappointed at its departure.

"I've ridden on it a few times myself and of course I love the lights, the lights are a huge addition to the city skyline."

Ms Scaffidi said she could see the wheel from her office at Council House and believed it had been popular.

"Traders around Barrack Square say it's really enhanced business for them," she said.

"It's been a good thing for the city."

The decision to close the wheel comes a month after the City of Perth resolved to change the zoning of the land it is sitting on from road reserve to crown reserve after World Tourist Attractions indicated it wanted to stay on the site for two more years.