South Bairnsdale Industrial Estate

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Map of South Bairnsdale Industrial Estate

Bairnsdale South Industrial Estate Council Intent to Declare a Special Charge Scheme for Firefighting Water Supply Upgrade

In December 2021, Council declared a Special Charge Scheme for South Bairnsdale Industrial Estate to Augment the water supply. A copy of the declaration is attached, right.

Council is working with East Gippsland Water to undertake an upgrade to the water supply to the Estate. This upgrade will support the development of the Estate by reducing the cost of meeting the Building Code regulations regarding firefighting requirements for buildings over 500 sqm in floor space.

The Building Code of Australia makes it necessary for buildings over 500 sqm of floor space to have greater levels of firefighting services than smaller buildings. The current water supply to the Estate does not make it possible for building over 500 sqm to meet their firefighting service obligations without significant additional cost.

Anyone wanting to construct a building over 500 sqm of floor space, is required at their own cost to install additional private firefighting services. These costs are estimated to be between $50,000-$150,000 for each property. This cost is an impediment to industry development, limiting economic growth in the region.

Council, the Victorian Government, through Regional Development Victoria and East Gippsland Water are working towards upgrading the water supply which will reduce the cost of providing firefighting service for larger buildings in the Estate. The total cost of this project is $2.4m.

East Gippsland Water have committed $1.1m to the project, the Victorian Government has provided $500,000 and Council has committed $400,000 to the project. The declaration of the Special Charge Scheme requires property owners who will benefit from the scheme to contribute $400,000 to the project.

Council has considered every property in the affected area to determine the cost payable to each landowner.

As part of its consideration with respect to which lots should be subject to the Special Charge, Council has proposed exempting or reducing the liability on certain lots on the basis that they will not derive any, or as much benefit from the project, including:

  • smaller lots that cannot reasonably fit a building over 500 sqm in floor space; and
  • sites that have already installed their own firefighting services and have been granted a permit of occupancy accordingly.

After the declaration of the scheme Council identified a number of issues that have required modification of the scheme. These include subdivisions that had proceeded prior to the declaration and a number of properties which were not included in the scheme and should have been and a number of properties that were included in the scheme but should not have been. As a result council is undertaking consultation for those property owners who will be impacted.

If you have any comments or concerns related to Council’s intent to vary the Special Charge Scheme, please email council at email, economic.development@egipps.vic.gov.au

Submissions must be made before 5.00 pm on Tuesday 10 May 2022.

Feedback will be considered by Council.

If you would like to discuss this project further with an Council Officer, please contact Stephen Kleinitz, Senior Economic Development Officer, on 5153 9500.


Methodology for the Calculation of Payments

A benefit unit accrues to those property owners who can currently, or in the future reasonably expect to, benefit from the improvement of water supply to the Designated Zone which would significantly reduce the cost of meeting the requirements of the Building Code and the Australian fire-fighting standards for buildings of a floor area greater than 500 square meters.

The theoretical benefit unit has been calculated based on the size of block in accordance with the table below.

Theoretical Benefit Units Calculations

Land area

m2

Theoretical Benefit Units Applicable

0-999

0

1000-2500

1

2500-3999

2

4000-5999

3

6000-7999

4

8000-999

5

10,000-11,999

6

12,000-13,999

7

14,000-15,999

8

16,000-17,999

9

18,000-19,999

10

20,000-21,999

11

22,000-23,999

12

24,000-25,999

13

26,000-27,999

14

28,000-29,999

15

Above 30,000

16

The benefit unit table has been determined based on the following assumptions:

  • It is practical to construct a building greater than 500 square meters floor area on block sizes greater than 999 square meters, taking into consideration the need for setbacks, internal roads and parking.

  • There is likely demand for erecting buildings greater than 500 square meters in floor area and up to 2000 square meters in floor area. Likely average building size has been assumed at 1500 square meters in floor area, which would require on average 2000 square meters of land area taking into consideration the need for setbacks, internal roads and parking.

  • For lots with a block size of 30,000 square meters or more, a subdivision will be required for buildings to be erected and meaningfully used, which will require some of the land area to be dedicated to internal roads which will be vested in council. Accordingly, Council has set a maximum number of benefit units for lots of this size.

  • Council has identified that there are circumstances in which the size of block is not a good indicator of the potential to construct a building, or buildings, with a floor area greater than 500 square meters. In respect of these properties, Council has adjusted the number of theoretical benefit units to correspond with the reduced benefit conferred on the property. Such circumstances include where:

  • The shape of the block is likely to limit the ability to construct building(s) of greater than 500 square meters;

  • The location and nature of easements on the property are such that the construction of a building(s) with a floor area greater than 500 square meters is impractical or impermissible;

  • The layout of existing buildings on the block would make it impractical and unfeasible to conveniently construct additional buildings of greater than 500 square meters floor area;

  • The existing use of the land is such that the construction of additional buildings of greater than 500 square meters in floor area is likely to be of little benefit or utility to landowners. For example, there are several sites within the Estate whereby the land is primarily used as outdoor laydown or storage areas and for which there is consequently little demand for buildings larger than 500 square meters in floor area. In relation to these properties Council has assumed that current land use is a likely predictor of future land use.

Council has reviewed every property within the Designated Zone and determined the number of theoretical benefit units to be allocated to the property.

Council has adjusted the number of benefits units in relation to properties for which Council is reasonably satisfied, having regard to the above, adjustment is reasonable and appropriate.

Further, Council has determined that the following properties are exempt from the Special Charge Scheme:

  • Land owned by East Gippsland Shire Council and East Gippsland Water on the basis that these are government owned enterprises and will not be building buildings greater than 500 square meters in floor area and hence will not receive a special benefit.

  • Those properties where there is already a building greater than 500 square meters floor area and a fire system has been installed which is compliant with the building code and the Australian fire-fighting standards, then no benefit will be accrued by improving the water supply and hence no benefit unit allocated.

Based on the above assumptions there are (currently) 372 benefit units in the area under consideration. The scheme is designed to recover $400,000. Hence the cost per benefit unit is (currently) $1,075.27.


Public Notice of Intent to vary the South Bairnsdale Industrial Estate Special Charge Scheme

Notice is hereby given of Council’s intention to vary, at its Ordinary Council Meeting to be held on Tuesday 7 June 2022, the Special Charge Scheme (Scheme) for the South Bairnsdale Industrial Estate (Estate) in accordance with section 166 of the Local Government Act 1989 (Act). The Scheme was declared on Thursday 16 December 2021 (Declaration).

The purpose of the Scheme is to defray the expenses to be incurred by Council in making arrangements for the upgrade of the water supply systems at the Estate so the volume, pressure and flow of water to the Estate is sufficient to satisfy firefighting standards for buildings with a floor area greater than 500m2.

The Scheme will commence on the day on which Council issues a notice levying payment of the Special Charge and will conclude on 30 June 2026.

The amount to be levied under the Scheme is $400,000, or such other amount as is lawfully levied as a consequence of the Declaration.

Copies of the proposed variation, and the Declaration being varied, are available for inspection on Council’s website and at Council’s offices at 273 Main Street, Bairnsdale (COVID-19 restrictions permitting) for a period of at least 28 days after the publication of this notice.

The Scheme as originally declared applies to the properties specified in the Special Charge Property Application Plan, which formed part of the Declaration.

Each of these properties was identified by Council as receiving a special benefit because, as a result of the Scheme, buildings with a gross floor area of 500m2 or more could be constructed and occupied on the land without incurring costs associated with privately funding works necessary to meet firefighting standards.

The Special Charge is assessed and levied on the basis of Benefit Units, which have generally been assigned to each property on the basis of the land area of the property. At the time of declaration, the value of a Benefit Unit was $1,139.60.

For further details regarding the Scheme, please refer to the Declaration.

Proposed variation

Council is proposing to vary the Scheme in accordance with s 166(1)(b) of the Act to update the properties in respect of which the Special Charge is payable.

Specifically, Council is proposing to vary the Special Charge Property Application Plan included in the original Declaration, to:

• incorporate 30 new lots created as a result of the subdivision of a large block in the Estate which occurred prior to the Declaration; and

• rectify administrative errors identified by Council, by:

o including 13 properties which Council intended to be subject to the Special Charge, but which were not listed;

o removing certain properties which Council intended to exclude from the Special Charge, but which were listed; and

o updating the specified area of several parcels of rateable land.

If the Special Charge is varied in accordance with Council’s proposal, the total number of properties and Benefit Units included in the Special Charge scheme will be increased and persons who are not currently required to pay the Special Charge will become liable for the Special Charge. The value of a Benefit Unit has been adjusted to reflect this and will be $1,218.49.

The liability of persons required to pay the Special Charge will be adjusted accordingly. Council anticipates that the liability for most, if not all, persons currently required to pay the Special Charge will be reduced.

Right to make a submission

Any person may make a written submission regarding the proposed variation under sections 166(4) and 233 of the Act. Submissions must be made before 5.00 pm on Tuesday 10 May 2022.

Any person who makes a submission is entitled to request in their submission to appear personally, or to be represented by a person specified in the submission, to be heard in support of the submission. Any person who wishes to be heard in support of their submission will be advised of the day, time and place on which they may attend to be heard. Council will consider any written submissions received in accordance with sections 166(4) and 223 of the Act.

Any person requiring further information about concerning the proposed declaration of Special Charge should, in the first instance, contact Jenny Bailey on 5153 9500 or via economic.development@egipps.vic.gov.au.

Authorised by Anthony Basford,

Chief Executive Officer


Bairnsdale South Industrial Estate Council Intent to Declare a Special Charge Scheme for Firefighting Water Supply Upgrade

In December 2021, Council declared a Special Charge Scheme for South Bairnsdale Industrial Estate to Augment the water supply. A copy of the declaration is attached, right.

Council is working with East Gippsland Water to undertake an upgrade to the water supply to the Estate. This upgrade will support the development of the Estate by reducing the cost of meeting the Building Code regulations regarding firefighting requirements for buildings over 500 sqm in floor space.

The Building Code of Australia makes it necessary for buildings over 500 sqm of floor space to have greater levels of firefighting services than smaller buildings. The current water supply to the Estate does not make it possible for building over 500 sqm to meet their firefighting service obligations without significant additional cost.

Anyone wanting to construct a building over 500 sqm of floor space, is required at their own cost to install additional private firefighting services. These costs are estimated to be between $50,000-$150,000 for each property. This cost is an impediment to industry development, limiting economic growth in the region.

Council, the Victorian Government, through Regional Development Victoria and East Gippsland Water are working towards upgrading the water supply which will reduce the cost of providing firefighting service for larger buildings in the Estate. The total cost of this project is $2.4m.

East Gippsland Water have committed $1.1m to the project, the Victorian Government has provided $500,000 and Council has committed $400,000 to the project. The declaration of the Special Charge Scheme requires property owners who will benefit from the scheme to contribute $400,000 to the project.

Council has considered every property in the affected area to determine the cost payable to each landowner.

As part of its consideration with respect to which lots should be subject to the Special Charge, Council has proposed exempting or reducing the liability on certain lots on the basis that they will not derive any, or as much benefit from the project, including:

  • smaller lots that cannot reasonably fit a building over 500 sqm in floor space; and
  • sites that have already installed their own firefighting services and have been granted a permit of occupancy accordingly.

After the declaration of the scheme Council identified a number of issues that have required modification of the scheme. These include subdivisions that had proceeded prior to the declaration and a number of properties which were not included in the scheme and should have been and a number of properties that were included in the scheme but should not have been. As a result council is undertaking consultation for those property owners who will be impacted.

If you have any comments or concerns related to Council’s intent to vary the Special Charge Scheme, please email council at email, economic.development@egipps.vic.gov.au

Submissions must be made before 5.00 pm on Tuesday 10 May 2022.

Feedback will be considered by Council.

If you would like to discuss this project further with an Council Officer, please contact Stephen Kleinitz, Senior Economic Development Officer, on 5153 9500.


Methodology for the Calculation of Payments

A benefit unit accrues to those property owners who can currently, or in the future reasonably expect to, benefit from the improvement of water supply to the Designated Zone which would significantly reduce the cost of meeting the requirements of the Building Code and the Australian fire-fighting standards for buildings of a floor area greater than 500 square meters.

The theoretical benefit unit has been calculated based on the size of block in accordance with the table below.

Theoretical Benefit Units Calculations

Land area

m2

Theoretical Benefit Units Applicable

0-999

0

1000-2500

1

2500-3999

2

4000-5999

3

6000-7999

4

8000-999

5

10,000-11,999

6

12,000-13,999

7

14,000-15,999

8

16,000-17,999

9

18,000-19,999

10

20,000-21,999

11

22,000-23,999

12

24,000-25,999

13

26,000-27,999

14

28,000-29,999

15

Above 30,000

16

The benefit unit table has been determined based on the following assumptions:

  • It is practical to construct a building greater than 500 square meters floor area on block sizes greater than 999 square meters, taking into consideration the need for setbacks, internal roads and parking.

  • There is likely demand for erecting buildings greater than 500 square meters in floor area and up to 2000 square meters in floor area. Likely average building size has been assumed at 1500 square meters in floor area, which would require on average 2000 square meters of land area taking into consideration the need for setbacks, internal roads and parking.

  • For lots with a block size of 30,000 square meters or more, a subdivision will be required for buildings to be erected and meaningfully used, which will require some of the land area to be dedicated to internal roads which will be vested in council. Accordingly, Council has set a maximum number of benefit units for lots of this size.

  • Council has identified that there are circumstances in which the size of block is not a good indicator of the potential to construct a building, or buildings, with a floor area greater than 500 square meters. In respect of these properties, Council has adjusted the number of theoretical benefit units to correspond with the reduced benefit conferred on the property. Such circumstances include where:

  • The shape of the block is likely to limit the ability to construct building(s) of greater than 500 square meters;

  • The location and nature of easements on the property are such that the construction of a building(s) with a floor area greater than 500 square meters is impractical or impermissible;

  • The layout of existing buildings on the block would make it impractical and unfeasible to conveniently construct additional buildings of greater than 500 square meters floor area;

  • The existing use of the land is such that the construction of additional buildings of greater than 500 square meters in floor area is likely to be of little benefit or utility to landowners. For example, there are several sites within the Estate whereby the land is primarily used as outdoor laydown or storage areas and for which there is consequently little demand for buildings larger than 500 square meters in floor area. In relation to these properties Council has assumed that current land use is a likely predictor of future land use.

Council has reviewed every property within the Designated Zone and determined the number of theoretical benefit units to be allocated to the property.

Council has adjusted the number of benefits units in relation to properties for which Council is reasonably satisfied, having regard to the above, adjustment is reasonable and appropriate.

Further, Council has determined that the following properties are exempt from the Special Charge Scheme:

  • Land owned by East Gippsland Shire Council and East Gippsland Water on the basis that these are government owned enterprises and will not be building buildings greater than 500 square meters in floor area and hence will not receive a special benefit.

  • Those properties where there is already a building greater than 500 square meters floor area and a fire system has been installed which is compliant with the building code and the Australian fire-fighting standards, then no benefit will be accrued by improving the water supply and hence no benefit unit allocated.

Based on the above assumptions there are (currently) 372 benefit units in the area under consideration. The scheme is designed to recover $400,000. Hence the cost per benefit unit is (currently) $1,075.27.


Public Notice of Intent to vary the South Bairnsdale Industrial Estate Special Charge Scheme

Notice is hereby given of Council’s intention to vary, at its Ordinary Council Meeting to be held on Tuesday 7 June 2022, the Special Charge Scheme (Scheme) for the South Bairnsdale Industrial Estate (Estate) in accordance with section 166 of the Local Government Act 1989 (Act). The Scheme was declared on Thursday 16 December 2021 (Declaration).

The purpose of the Scheme is to defray the expenses to be incurred by Council in making arrangements for the upgrade of the water supply systems at the Estate so the volume, pressure and flow of water to the Estate is sufficient to satisfy firefighting standards for buildings with a floor area greater than 500m2.

The Scheme will commence on the day on which Council issues a notice levying payment of the Special Charge and will conclude on 30 June 2026.

The amount to be levied under the Scheme is $400,000, or such other amount as is lawfully levied as a consequence of the Declaration.

Copies of the proposed variation, and the Declaration being varied, are available for inspection on Council’s website and at Council’s offices at 273 Main Street, Bairnsdale (COVID-19 restrictions permitting) for a period of at least 28 days after the publication of this notice.

The Scheme as originally declared applies to the properties specified in the Special Charge Property Application Plan, which formed part of the Declaration.

Each of these properties was identified by Council as receiving a special benefit because, as a result of the Scheme, buildings with a gross floor area of 500m2 or more could be constructed and occupied on the land without incurring costs associated with privately funding works necessary to meet firefighting standards.

The Special Charge is assessed and levied on the basis of Benefit Units, which have generally been assigned to each property on the basis of the land area of the property. At the time of declaration, the value of a Benefit Unit was $1,139.60.

For further details regarding the Scheme, please refer to the Declaration.

Proposed variation

Council is proposing to vary the Scheme in accordance with s 166(1)(b) of the Act to update the properties in respect of which the Special Charge is payable.

Specifically, Council is proposing to vary the Special Charge Property Application Plan included in the original Declaration, to:

• incorporate 30 new lots created as a result of the subdivision of a large block in the Estate which occurred prior to the Declaration; and

• rectify administrative errors identified by Council, by:

o including 13 properties which Council intended to be subject to the Special Charge, but which were not listed;

o removing certain properties which Council intended to exclude from the Special Charge, but which were listed; and

o updating the specified area of several parcels of rateable land.

If the Special Charge is varied in accordance with Council’s proposal, the total number of properties and Benefit Units included in the Special Charge scheme will be increased and persons who are not currently required to pay the Special Charge will become liable for the Special Charge. The value of a Benefit Unit has been adjusted to reflect this and will be $1,218.49.

The liability of persons required to pay the Special Charge will be adjusted accordingly. Council anticipates that the liability for most, if not all, persons currently required to pay the Special Charge will be reduced.

Right to make a submission

Any person may make a written submission regarding the proposed variation under sections 166(4) and 233 of the Act. Submissions must be made before 5.00 pm on Tuesday 10 May 2022.

Any person who makes a submission is entitled to request in their submission to appear personally, or to be represented by a person specified in the submission, to be heard in support of the submission. Any person who wishes to be heard in support of their submission will be advised of the day, time and place on which they may attend to be heard. Council will consider any written submissions received in accordance with sections 166(4) and 223 of the Act.

Any person requiring further information about concerning the proposed declaration of Special Charge should, in the first instance, contact Jenny Bailey on 5153 9500 or via economic.development@egipps.vic.gov.au.

Authorised by Anthony Basford,

Chief Executive Officer


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Page last updated: 11 Apr 2022, 04:45 PM