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Falls Creek Resort Management Property and Leasing Workshop 16 September, 2009

Falls Creek Resort Management Property and Leasing Workshop 16 September, 2009. Falls Creek Leases. Leasing in Falls Creek and all Victorian Alpine Resorts is administered in accordance with the: “Alpine Resorts Leasing Policy 2002”

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Falls Creek Resort Management Property and Leasing Workshop 16 September, 2009

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  1. Falls Creek Resort Management Property and Leasing Workshop 16 September, 2009

  2. 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

  3. Falls Creek Leases • Lease types presently in place • Original SEC lease • Alpine Resorts Commission Lease • Current standard Alpine Lease as per current Act

  4. New lease process 48% of current leases have remnant lease term < 10 years 22 leases with term > 30 years (up from 14 in March 2009) 5 leases in final stages prior to execution, FCRM in discussions with 30 Lessees Lease Terms Falls Creek

  5. Leasing Process Applicant Enquiry • Documentation required for proposal review: • Application Form • Company Constitution • Company ASIC extract • A list of all parties with a vested interest in the property • Business Plan • Public Liability Insurance • Essential Services Report • Building Code of Australia Report • Design & Siting Guideline Report • Building Valuation • Landscape Management Plan • Bushfire Risk Assessment Report FCRM review information provided and prepare recommendation paper for the Planning & Land Management (PLM) Committee for review / consideration. Directed to www.fallscreek.com/corporate/leasing for forms and information. Invitation to meet with FCRM to discuss process / proposal. PLM Committee recommendation provided to FCARMB for consideration/ approval Request for Approval in Principle (AIP) provided to Minister for consent Draft Lease document generated by Board’s solicitors and provided to Applicant for review Lease document finalised and provided to Applicant for execution with Deed of Surrender of existing Lease Lease forwarded to Minister for Approval Lease documents issued to Board’s Solicitors Lease executed by CEO on behalf of Board Board’s solicitors issue Lease documents to Land Victoria for registration Copy of registered Lease provided to FCRM and the Applicant

  6. 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

  7. 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.”

  8. 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.”

  9. 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

  10. 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

  11. 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.

  12. Alpine Resorts Policy Assessment Matrix

  13. Victorian Alpine Resort Value • Revenue: Federal Tax $160M, State Tax $22M (annualised all Vic resorts 2005) • Direct expenditure: $436M (all Vic resorts 2008) • Gross State Product: $470M (all Vic resorts 2008) • Employment Annual Equivalent: 4,973 (all Vic resorts 2008)

  14. 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.

  15. 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

  16. 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.

  17. 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 sub-lease

  18. 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

  19. 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 • FCRM provide Lessor Consent under the Lease and Approval in Principle under the Scheme • Planning Permit is applied for with the support of FCRM

  20. Property Development Property Development • Recent / Upcoming proposals • Site 216 Woodsmoke finalisation • Site 22 Altezza 1570 completion • Site 58 Carey refurbishment • Site 85 Falls Creek Hotel extension • Site 208 Cosella refurbishment & extension • Site 64 Tivoli refurbishment & extension • Site 94 Mogul refurbishment & extension • Site 18 Subzero redevelopment • Various sites upgrades/improvements

  21. Purchases / Development State Revenue Office (SRO) • Confirmation of application of First Home Buyers Grant for Crown Lease properties • Dependant upon Share Structure of Lessee Company and specifics of applicable Contract of Sale • Further information contact FCRM or SRO www.fallscreek.com.au www.sro.vic.gov.au • FCRM confirms a successful application and granting of the First Home Buyers Grant to an apartment in Falls Creek in 2009

  22. Duties Act • On 21 November 2008 the Government first introduced legislation amending the Duties Act. • That Bill was ultimately quashed in February of this year. • The Duties Amendment Act 2009 (Consented to 7 July 2009) describes its main purpose as amending the Duties Act 2000 to ensure that leases are not used as a mechanism for avoiding stamp duty. • The reintroduced Bill is to take affect from 21 November 2008. • The net effect of the legislation is that a transfer of lease where there is a sale price or consideration for the transfer is now a dutiable transaction. • Falls Creek Resort is presently seeking a ruling regarding the application of the Act to surrender and re-grants of Crown Leases.

  23. Bushfire Protection Amendment VC61 is the introduction of a new clause to the Planning Scheme Clause 52.43 – Interim measures for bushfire protection After the experiences of this year’s devastating bushfires, the State Government has streamlined vegetation controls in areas that are prone to bushfire so that landowners and residents can implement their bushfire plan before the next fire season. The purpose of the new provision is to enable the removal, destruction or lopping of vegetation to reduce fuel load around buildings used for accommodation and on roadsides to assist with minimising risk to life and property from bushfire.

  24. Bushfire Protection What has been introduced? Under the new provision Clause 52.43: • any requirement of a planning permit, including any condition, which has the effect of prohibiting the removal, destruction or lopping of vegetation; or • any requirement of the planning • scheme to obtain a planning permit; or • any provision in the planning scheme which prohibits the removal, destruction or lopping of vegetation; or • any provision in the planning scheme that requires the removal, destruction or lopping of vegetation to be carried out in a particular manner; Does not apply to the following measures for bushfire protection: • the removal, destruction or lopping of any vegetation within 10 metres of a building used for accommodation • the removal, destruction or lopping • of any vegetation, except for trees, within 30 metres of a building used for accommodation • the removal, destruction or lopping of any vegetation for a combined maximum width of four metres either side of a fence on a boundary between properties in different ownership • fuel reduction burning on the roadside of an existing public road • the removal of fallen wood for personal use from the roadside of an existing public road.

  25. Bushfire Protection Does not apply to the following measures for bushfire protection: • the removal, destruction or lopping of any vegetation within 10 metres of a building used for accommodation • the removal, destruction or lopping of any vegetation, except for trees, within 30 metres of a building used for accommodation • the removal, destruction or lopping of any vegetation for a combined maximum width of four metres either side of a fence on a boundary between properties in different ownership • fuel reduction burning on the roadside of an existing public road • the removal of fallen wood for personal use from the roadside of an existing public road. • The provisions of clause 52.43 does not apply to all of VictoriA BUT DOES apply to the Alpine Resorts

  26. 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 been developing a Fire Preparation Plan (FPP). Objectives: • To protect the lives of residents and guests of Falls Creek; • To protect the natural and man made assets and infrastructure associated with the Resort; and • To minimise environmental impacts associated with the implementation of the FPP

  27. Bushfire Protection Falls Creek Resort Management Fire Preparation Plan Required actions by stakeholders: “Prior to each fire danger period, all loose flammable material e.g. building materials, rubbish, leaf litter etc, to be removed from the site.” Where stakeholders fail to remove identified hazards prior to the specified date each fire season, FCRM will arrange to carry out the works at the Lessee’s cost. FCRM encourages a collaborative and cooperative approach to ensuring the fire preparedness and safety of the Village. Further information and a copy of the FPP will be made available on www.fallscreek.com.au

  28. Contacts For further information on the new lease application process or planning permit process, please visit: www.fallscreek.com.au/Proprty or contact FCRM Anthony Walkley: 03 5758 1224 anthonywalkley@fallscreek.com.au Casey Brasher: 03 5758 1241 caseybrasher@fallscreek.com.au

  29. Questions?

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