INDUSTRIAL LAND USE STRATEGY - City of Darebin

INDUSTRIAL LAND USE STRATEGY - City of Darebin INDUSTRIAL LAND USE STRATEGY - City of Darebin

darebin.vic.gov.au
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12.07.2015 Views

4.5.1 Development Contributions PolicyIn March 1999 Council adopted aDevelopment Contributions Policy togive effect to an element of the CouncilPlan 1998 which was to ensure:“The planning and implementationof timely and relevant social,cultural and recreational policiesand funding programs to meet theneeds of the diverse Darebincommunity”.Council’s Development ContributionsPolicy has two specific objectives:1. To address all relevant developmentcontribution levy requirements aspart of the development approvalsprocess.2. To apply an appropriatedevelopment contribution levywhich, when tested, is found to beviable and feasible in accordancewith legislative requirements andwhich satisfies the criteria of Need,Nexus, Equity and Accountability.This policy recognised that infrastructureand services within the municipality cateredto a level of demand determined by pastdevelopment and that changes resultingfrom urban consolidation and the conversionof industrial buildings is impacting on thepopulation patterns and the demand forfacilities.The policy identifies Development Contribution Plans and Section 173 Agreements asvehicles for requiring contributions and it points out that these contributions could beby direct provision (ie providing the land or constructing the facility) or by cashcontribution.4.5.2 Negotiated Section 173 AgreementsUnder Section 173 of the Planning andEnvironment Act Council may negotiatewith developers for the provision ofinfrastructure or a contribution towardthe provision of infrastructure. This isdone as part of the permit process andthe Section 173 is included as a permitcondition.Section 173 agreements are the mostcommon mechanism to obtaindevelopment contributions in Victoria.Council planners assess a developmentapplication, determining the likelyimpact on community infrastructure andfacilities and negotiate an appropriatecontribution.The benefit of Section 173agreements is that it gives Counciland the developers the scope andflexibility, by agreement, to movebeyond the stringent rules and testsof the Development ContributionsAct 1995.Industrial Land Use Strategy 18

4.5.3 Development Contributions PlansThe Planning and Environment(Development Contributions) Act 1995provides for Councils to collectcontributions or levies through anapproved Development Contribution Plan(DCP) which would be incorporated intothe Darebin Planning Scheme via anamendment.Two components to DevelopmentContribution Plans were identified:1. Physical Infrastructure, payable upfront for items such as roads, drains,open space or land for communityinfrastructure.2. Social/Community Infrastructure,which included community meetinghalls, pre-schools, maternal and childhealth, care centres.An upper limit of $450 per lot forresidential development was applied tothe Community Infrastructure levy. Thismeans an apartment complex of 40homes would only be required tocontribute $18,000 to infrastructure yet,in a small or isolated locality 40additional homes may have asubstantial impact on local services.Non-residential development couldattract a development contribution ofup to 0.25% of construction costs forcommunity infrastructure.The Department of Infrastructure iscurrently reviewing the use of DCPsand Darebin is part of a pilot project.Development Contribution Planshave not been utilized by mostCouncils, probably due to theircumbersome nature and the onerouswork required by Councils tointroduce them.A comprehensive impact analysis isrequired to inform the level ofcontributions that must address thetests of need, nexus, equity andaccountability.4.5.4 Special Rate LevySection 163 of the Local Government Act 1989 provides for Councils to levy special rates andcharges. These Special rates and charges may be levied on any specified area for the purposeof “defraying any expenses”. Special Rate Levies are currently used in some retail centres inthe City of Darebin to help Council market and promote the local centre.The use of a special levy would enable Council to direct the cost of improvements to thecommunity that is considered to benefit. Costs for tasks such as the bundling of overheadcabling could then be defrayed amongst the wider community that would benefit from theimproved streetscape and thus minimise the cost to any individual or company.Special rate levies are advantageous in that they can be applied to a larger communitybenefiting from the improvements and are not restricted to individual developments asare DCP’s and Section 173 Agreements.Industrial Land Use Strategy 19

4.5.1 Development Contributions PolicyIn March 1999 Council adopted aDevelopment Contributions Policy togive effect to an element <strong>of</strong> the CouncilPlan 1998 which was to ensure:“The planning and implementation<strong>of</strong> timely and relevant social,cultural and recreational policiesand funding programs to meet theneeds <strong>of</strong> the diverse <strong>Darebin</strong>community”.Council’s Development ContributionsPolicy has two specific objectives:1. To address all relevant developmentcontribution levy requirements aspart <strong>of</strong> the development approvalsprocess.2. To apply an appropriatedevelopment contribution levywhich, when tested, is found to beviable and feasible in accordancewith legislative requirements andwhich satisfies the criteria <strong>of</strong> Need,Nexus, Equity and Accountability.This policy recognised that infrastructureand services within the municipality cateredto a level <strong>of</strong> demand determined by pastdevelopment and that changes resultingfrom urban consolidation and the conversion<strong>of</strong> industrial buildings is impacting on thepopulation patterns and the demand forfacilities.The policy identifies Development Contribution Plans and Section 173 Agreements asvehicles for requiring contributions and it points out that these contributions could beby direct provision (ie providing the land or constructing the facility) or by cashcontribution.4.5.2 Negotiated Section 173 AgreementsUnder Section 173 <strong>of</strong> the Planning andEnvironment Act Council may negotiatewith developers for the provision <strong>of</strong>infrastructure or a contribution towardthe provision <strong>of</strong> infrastructure. This isdone as part <strong>of</strong> the permit process andthe Section 173 is included as a permitcondition.Section 173 agreements are the mostcommon mechanism to obtaindevelopment contributions in Victoria.Council planners assess a developmentapplication, determining the likelyimpact on community infrastructure andfacilities and negotiate an appropriatecontribution.The benefit <strong>of</strong> Section 173agreements is that it gives Counciland the developers the scope andflexibility, by agreement, to movebeyond the stringent rules and tests<strong>of</strong> the Development ContributionsAct 1995.Industrial Land Use Strategy 18

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