Falls Creek Resort Management
Property and Leasing Workshop
16 September 2010
Falls Creek Leases
Leasing in Falls Creek and all Victorian Alpine
Resorts is administered in accordance with the:
“Alpine Resorts Leasing Policy 2002”
Government document designed to provide a consistent
and transparent framework for the Leasing of Crown
Land.
All FCRM policies and procedures are developed in
accordance with the intent of this overarching policy.
The policy provides for existing lessees to be offered the
first right to negotiate a new lease.
Falls Creek Leases
• Lease types
presently in
place
– Original SEC
lease
– Alpine
Resorts
Commission
Lease
– Current
standard
Alpine Lease
as per
current Act
Lease Type
ARC, 24
FCRM, 32
FCRM
SEC
ARC
SEC, 34
Lease Terms Falls Creek
• New lease
process
– 43% of current
leases have
remnant lease
term < 10 years
– 32 leases with
term > 30 years
(up from 22 in
Sep 2009)
– 5 leases in final
stages prior to
execution.
– FCRM in
discussions with
30 Lessees
Lease Expiry
27
32
Under 5 Years
Between 5 - 10 years
Between 10 - 15 years
Between 15 - 20 years
Between 20 - 30 years
Greater than 30 years
12
7
2
10
Leasing Process
Applicant
Enquiry
Directed to
www.fallscreek.com
/corporate/leasing for forms
and information.
Invitation to meet with
FCRM to discuss process /
proposal.
Request for Approval in
Principle (AIP) provided
to Minister for consent.
Site Val & Lease Plan
required to be submitted
with AIP request.
Lease executed by CEO on
behalf of Board
Documentation required for proposal review:
• Application Form
Company Constitution
Company ASIC extract
A list of all parties with a vested interest in the property
Public Liability Insurance
Building Valuation
Business Plan
Essential Services Report
Building Code of Australia Report
Design & Siting Guideline Report
Landscape Management Plan
Bushfire Risk Assessment Report
Draft Lease document
generated by Board’s
solicitors and provided to
Applicant for review
Lease documents issued to
Board’s Solicitors
Lease document finalised
and provided to Applicant
for execution with Deed of
Surrender of existing
Lease
Board’s solicitors issue Lease
documents to Land Victoria
for registration
FCRM review information provided
and prepare recommendation paper
for the Planning & Land Management
(PLM) Committee for review /
consideration.
PLM Committee
recommendation provided to
FCARMB for consideration/
approval
Lease forwarded to
Minister for Approval
Copy of registered Lease
provided to FCRM and the
Applicant
Assessment Requirements
REPORTS
• Building Code of Australia FCRM Policy (Implemented
September 2007)
• Australian Standard 3959 Bushfire Risk Assessment
FCRM Policy (Implemented September 2007)
• FCRM Design and Siting Guidelines (2004)
• Landscape Plan in accordance with FCRM Vegetation
and Weed Management Policy
• Reports define minimum work requirements > Schedule
3 Obligations
Lease Term Impacts
FCRM assesses:
• Historical position of Tenant
Past performance and history of community support of the Lessee is
taken into consideration.
• Financial history
FCRM is charged with the responsible management of the Land on
behalf of the Crown
• Accommodation Condition
“the facilities at the resorts provided under leasehold arrangement
cater for a range of experiences, from resort-style accommodation
and activities with skiing for all skill levels, to low-cost facilities highly
accessible to families and school groups and providing an
introduction to snow for many visitors.”
Lease Term Impacts
• Retail, social & sports activity (Village amenity)
“the alpine resorts also provide an important source of recreation to
Victorians and to interstate and international visitors, supported
through the provision of accommodation, infrastructure, retail and
commercial premises.”
• Annual activity/accommodation
– Summer only
– Winter only
– All year round
“the economic benefits provided are demonstrated through the
generation of income and employment arising from tourism
activity within the resort and en route to and from the resorts
during both the winter and non-winter seasons.”
Lease Term Impacts
• Employment levels (Similar to Annual
Activity/Accommodation )
–
–
–
–
Summer
Winter
All Seasons
Full Time Equivalents
• $ Financial outlay
– Ongoing refurbishment / maintenance programs
– Development proposal
• Business Plans
– Improved Lessee business planning
– Plan provides visibility to FCRM for accurate lease term
Lease Term Impacts
• Strategically Identified Site Potential (SISP)
Development % of the site
– Alpine Resorts Planning Scheme guidelines
• 11 m height and 40% site coverage (A1 area of the
Village as per DPCD Alpine Resorts Planning
Scheme)
– In accordance with the Alpine Resorts Leasing
Implementation Policy, SISP defines the lease term
category for each site:
• Ranges: 0 – 10, 11 – 21, 22 – 35, 36 – 45 & 46 –
51, years
SISP Example
Alpine Resorts Policy Assessment Matrix
13.2. LEASE TERM
In accordance with the Government’s announcement of 30 March 2002, lease term shall be
commensurate with proposed use and investment. The table of criteria for determination of lease
term below relates the maximum lease term with the level of development identified by the Board
as appropriate for the site, and links these with conditions that must be met by the lessee in order
for a lease proposal to be considered.
13.2.1. Criteria for determination of lease term
The determination of lease term is subject to the proposed lessee being identified by the Board as
a good lessee. This will be established through:
•
•
•
•
assessment of the lessee’s ability to meet the requirements of the lease (such as payment of
rent);
consideration of the submitted Business Plan;
examination of records related to an existing lessee’s past performance with regard to
Standards of Occupancy; and
other relevant considerations.
Having established that the proposed lessee is a good lessee, the following criteria shall assist the
Board to make a determination with regard to lease term. This table of lease term criteria does not
stand alone and must be applied in conjunction with all other requirements.
Alpine Resorts Policy Assessment Matrix
Alpine Lease Registration Guidelines
• Following an amendment to the Transfer of
Land Act 1958, registration of leases
granted after 21 June 2006 is compulsory.
• Section 8 of the Act requires the
registration of lease granted by Boards in
the Alpine Resorts.
Alpine Lease Registration Guidelines
For leases to be registered, they must satisfy a number of
requirements that are strictly applied by Land Victoria:
• The land must be in the State cadastre and correctly
described by a lease plan certified by the Surveyor
General;
• The form and content of the lease must be acceptable
for registration by use of the standard Alpine Resorts
Lease document or DSE approved alternative lease;
• The lease must be submitted for registration at Land
Victoria
Alpine Lease Registration Guidelines
In following the standardised FCRM new lease
application and granting process, all new leases issued
will be in a registrable format.
What does this mean for Lessees?
Land Victoria’s Land Titles Register holds certificates of
title, plans of subdivision and other property documents
that comprise the States official land and property
records.
The Government guarantees the accuracy of this
register of property ownership interests.
The register is open to public search.
Alpine Lease Registration Guidelines
Lease and sub-lease registration offers the following
benefits:
• transparency,
• the ability of others such as mortgagees to register their
interest in the lease or sub-lease
• Greater protection of that interest
Once registered, a certificate of title is created for each
lease and a searchable record is created for each sublease
Alpine Lease Registration Guidelines
The registration system is familiar to conveyancing
practitioners and lawyers and is accepted by financial
institutions, with simple forms and processes directing
common transactions such as transfer of ownership.
For further information, please visit:
www.dse.vic.gov.au
Property Development
Falls Creek Alpine Resort is covered by the Alpine
Resorts Planning Scheme
– This Scheme is administered by the Department of Planning and
Community Development (DPCD) the “Responsible Authority”
– All works require the Consent of the Falls Creek Alpine Resort
Management Board as the Head Lessee
– Consents are facilitated via Falls Creek Resort Management
– FCRM and DPCD have an established protocol for approving
Planning Permit Applications
– First port of call is to contact FCRM to discuss and seek
approval for development works. DPCD makes itself available
for pre-application meetings.
– FCRM provide Lessor Consent under the Lease and Approval in
Principle under the Scheme
– Planning Permit is applied for with the support of FCRM
Property Development
Property Development
– Recent / Upcoming proposals
•
•
•
•
•
•
•
•
•
Site 208 Cosela refurbishment & extension
Site 64 Tivoli refurbishment & extension
Site 94 Mogul refurbishment & extension
Site 18 Subzero redevelopment
Site 4A Four Seasons redevelopment
Site 4B Ironbark redevelopment
Site 207 Chorki refurbishment & extension
Site 98 Schusski refurbishment completed
Various sites upgrades/improvements
Bushfire Protection
Falls Creek Resort Management Fire Preparation Plan
Subsequent to the fires of 2003 & 2006 but prior to those of 2009
FCRM in consultation with the CFA has developed and implemented
a Fire Preparation Plan (FPP).
Objectives:
1. To protect the lives of residents and guests of Falls Creek;
2. To protect the natural and man made assets and infrastructure
associated with the Resort; and
3. To minimise environmental impacts associated with the
implementation of the FPP
4. To play a key role in assisting the Village to meet future
requirements of the Bushfire Attack Level determinations and
vegetation requirements of the Wildfire Management Overlay
Contacts
For further information on the new lease application process and planning permit
process respectively, please visit:
www.fallscreek.com.au/Property
Anthony Walkley: 03 5758 1224
anthonywalkley@fallscreek.com.au
Casey Brasher: 03 5758 1241
caseybrasher@fallscreek.com.au
www.dpcd.vic.gov.au
Ben Howells: 03 9637 9549
Ben.howells@dpcd.vic.gov.au
Mary Dempster: 03 96379548
Mary.dempster@dpcd.vic.gov.au
Questions?