REASONS FOR DECISION TO EXERCISE POWER OF INTERVENTION UNDER SECTION 20(4) OF THE PLANNING AND ENVIRONMENT ACT 1987 MORNINGTON PENINSULA PLANNING SCHEME AMENDMENT C180 The Planning and Environment Act 1987 (the Act), the Heritage Act 1995 and the Victorian Civil and Administrative Tribunal Act 1998 provide for the intervention of the Minister for Planning in planning and heritage processes. In exercising my powers of intervention, I have agreed to: Make publicly available written reasons for each decision; and Provide a report to Parliament at least every twelve months detailing the nature of each intervention. REQUEST FOR INTERVENTION 1. In a letter dated 30 September 2013, Mornington Peninsula Shire Council requested that I prepare, adopt and approve Amendment C180 to the Mornington Peninsula Planning Scheme and exempt myself from the usual notice and consultation requirements in accordance with section 20(4) of the Act. WHAT POWER OF INTERVENTION IS BEING USED? 2. I have decided to exercise my powers to exempt myself from all the requirements of sections 17, 18 and 19 of the Act and the regulations in respect to Amendment C180 to the Mornington Peninsula Planning Scheme. 3. Section 20(4) of the Act enables the Minister for Planning to exempt an amendment which the Minister prepares from any of the requirements of sections 17, 18 and 19 of the Act or the regulations. 4. In seeking to exercise this power, section 20(4) of the Act requires that the Minister must consider that compliance with any of those requirements is not warranted or that the interests of Victoria or any part of Victoria make such an exemption appropriate. BACKGROUND 5. The RACV is seeking to redevelop parts of its existing tourism facility at Cape Schanck to create a new hotel and conference facility, comprising a reception, restaurant, lounge, conference and event spaces accommodating up to 650 people, pool, day spa, gym, golf pro-shop and 120 centrally located accommodation rooms. The controls will ensure an operationally efficient and well-designed building form. Once the new hotel and conference facility is operational, the existing conference facilities on the land will be closed and the buildings will be demolished. 6. The existing resort was developed in the late-1980s. The current planning controls for the Cape Schanck Resort are contained in a document incorporated into the Mornington Peninsula Planning Scheme titled The National Golf Course and Cape Schanck Resort Development October 2003 (Incorporated Document). 7. The Incorporated Document will facilitate the redevelopment of the hotel and conference facility by increasing the cap on conference delegate numbers to 650, and allowing the new hotel and conference facility to be built in a new location on the land. Further, due to the age of the Incorporated Document there is a need to update it to clarify permissions around existing uses on other parts of the land. 8. Specifically, the amendment will amend the Incorporated Document to: 9. • increase the number of function centre patrons permitted from 250 to 650, to allow for larger conferencing events to be hosted on the land; • introduce a clause that requires public notification of a Development Plan for the new hotel and conference facility, prior to its approval by the responsible authority; • provide for some flexibility in the location of the redeveloped hotel and conference facility; • allow for reticulated, as well as on site, sewerage services; and • extend the expiry date of the existing controls to reflect extensions granted through secondary consent provisions, and to provide an appropriate expiry date for the controls pertaining to the proposed redevelopment. The redevelopment project, valued at approximately $135 million, is of regional significance. It will meet an identified need for enhanced conferencing and tourism facilities in regional Victoria, a view supported by Tourism Victoria. It will bring both short and long term socio-economic benefits in generating jobs during planning and construction, increased local employment and training opportunities and significant potential to substantially increase visitors to the Mornington Peninsula area and support local tourism. 10. It is estimated the project will boost the regional economy by approximately $170 million and support up to 470 full time equivalent jobs during the construction stage. Ongoing jobs associated with the resort facility will increase from the current 57 jobs to an anticipated 120 full time positions. 11. The RACV Board is predisposed to making a significant investment in Cape Schanck Resort. Current economic circumstances are favourable for a competitive tender outcome and RACV is keen to capitalise on this opportunity, however this situation is unlikely to continue indefinitely. 12. The RACV undertook extensive consultation with nearby and surrounding residents, the Mornington Peninsula Shire Council, various agencies, the Office of the Victorian Government Architect and the neighbouring National Golf Club to discuss the proposed redevelopment. 13. In April 2014, the Department of Transport, Planning and Local Infrastructure consulted on the amendment under 20(5) of the Act with all owners and occupiers of land affected by the Incorporated Document, as well as relevant service providers and referral authorities. 34 submissions were received in response to this consultation. Amendment C180 responds to relevant concerns raised in submissions, most of which related to amenity and traffic impacts. BENEFITS OF EXEMPTION 14. The exemption of the amendment from the requirements of sections 17, 18 and 19 of the Act and the regulations will ensure a prompt decision can be made on the amendment, which will enable the controls to be updated to facilitate the redevelopment in a timeframe that will allow the project to progress to tender while economic conditions remain favourable. If the updated controls are not introduced in a timely manner there is a risk that the redevelopment project will not proceed and the substantial benefits the redevelopment will bring to the Mornington Peninsula will be lost. EFFECTS OF EXEMPTION ON THIRD PARTIES 15. The effect of the exemption is that third parties will not have the opportunity to make a formal submission in relation to the amendment and for submissions to be considered by a panel. 16. However consultation has already occurred in relation to the amendment with all parties who are likely to be affected, and the amendment prepared to respond to relevant concerns that were raised. 17. Further, the amendment provides that the redevelopment of the hotel and conference facility cannot take place until the responsible authority has approved a Development Plan. Notice of the plan must be given for at least 21 days and the responsible authority must consider all submissions. Potentially affected parties will therefore have an opportunity to provide input in relation to the redevelopment before it is finally approved. ASSESSMENT AS TO WHETHER BENEFITS OF EXEMPTIONS OUTWEIGH EFFECTS ON THIRD PARTIES 18. The exemption of the amendment will enable the timely introduction of controls to facilitate the redevelopment. The redevelopment represents a regionally significant investment in the Mornington Peninsula that will provide a significant boost to employment during construction, and ongoing economic and social benefits to the region following completion. These benefits may be at risk if the controls facilitating the redevelopment are not in place in a timely manner. 19. Consultation with the owners of the National Golf Course, the Council, government agencies and owners and occupiers of land affected by the amendment has already occurred and the amendment has been prepared to respond to relevant concerns that were raised. 20. The redevelopment plans for the site will be subject to community consultation, comment from relevant servicing and public authorities and approval by the responsible authority. This consultation is required before the responsible authority can approve the Development Plan. 21. Accordingly I consider that the benefits of exempting myself from sections 17, 18 and 19 of the Act outweigh any effects of the exemption on third parties. DECISION 22. I have decided to exercise my power to exempt myself from all the requirements of sections 17, 18 and 19 of the Act and the regulations in respect of Amendment C180 to the Mornington Peninsula Planning Scheme. REASONS FOR INTERVENTION 23. I provide the following reasons for my decision to exercise my power under section 20(4) of the Act. 24. I am satisfied that Compliance with any of the requirements of sections 17, 18 and 19 of the Act and the regulations is not warranted because: • the parties likely to be affected by the redevelopment have already been consulted about the amendment. They, and any other potentially affected parties, will also have the opportunity to make submissions in relation to the proposed redevelopment prior to the Council’s approval of the development plan. The interests of Victoria or any part of Victoria make such an exemption appropriate because: the redevelopment project is of regional significance and will bring substantial benefits to the region. If the changes to the planning scheme are not made in a timely manner there is a risk that the project will not proceed. SIGNED BY THE MINISTER MATTHEW GUY MLC Minister for Planning Date: