Crown fee rise

By Kath Gannaway
A NUMBER of Warburton businesses will face fee increases following a move by the Department of Sustainability and Environment to formalise the commercial use of Crown land along the Yarra River.
About a dozen commercial users of river reserve land from a kilometre downstream of Warburton township to the rear of the East Warburton Primary School are affected.
Gordon Buller, president of the Upper Yarra River Reserve Committee of Management, which administers the river reserve on behalf of the DSE, said the committee is in the process of formalising what have traditionally been arrangements negotiated for a peppercorn rent.
While Mr Buller was reluctant to give details of current users or how much they can expect to pay, he moved to play down rumours of fees as high as $10,000 suggested to the Mail by a local businessman.
“DSE is now requiring a commercial valuation and, while it will be a number of times higher than what they are currently paying, it won’t be anything like $10,000, judging by what is seen in other areas of the state,” Mr Buller said.
Warburton businessman Laurie McDonald owns one of the properties affected and said his tenant relies substantially on Crown land for car parking.
He said the impact on businesses would depend very much on how big any fee increase was.
“It would depend on their lease agreement but in most cases, and as far as I am concerned, it would be another outgoing for tenants.
“For some businesses any substantial increase could be devastating,” he said.
He said for decades there were no formal leases with the arrangement being very much a gentlemen’s agreement between the River Reserve Committee and the property owner. “If you didn’t pay, you received a dirty letter,” he said.
According to Mr Buller, businesses which haven’t paid over the years are part of the problem.
“A number of people have chosen to ignore invoices sent out in the past prompting DSE to call for formal leases.”
Mr Buller said the River Reserve Committee still has the option to negotiate leases with people who provide a commercial valuation.
“We can negotiate if they get back to us with something credible,” he said.
Wayne Malone, the manager of public land management for DSE Port Phillip Region, said formal leases were in the best interests of all stakeholders.
“They are needed to protect and recognise the interests of the public, the tenant, the Committee of Management and the Crown and to better manage the potential risk generated by public access, fire management, car parking and the encroachment of building extensions and septic tanks on the riverside reserve.
“The community expects a fair return to be obtained for the use of Crown land under commercial leasehold arrangements,” he said.