Sharing The Windfalls For A Greater Geelong
The C395 land rezoning to Geelong’s north and west has raised the question about capturing a percentage of windfall land values for public benefit.
The re-zoning greatly, and un-naturally, increases the value of the land, a financial windfall pocketed by the seller.
While enabling new housing and population growth, the Member for Western Victoria, Bev McArthur said the public is left to pay the costs of infrastructure required by the development such as roads, schools and sporting grounds.
“Increasing property and population will bring greater rates, and while this may provide adequate revenue for public services, it leaves an infrastructure gap,” Mrs McArthur told the Victorian Parliament.
She said developer contributions towards open space or footpaths don’t go near covering the costs.
Amendment C395 to the City of Greater Geelong Planning Scheme will enable the rezoning of 3,000 hectares of land for residential use, resulting in 40,000 homes and 100,000 new residents.
Developers estimate the two current landowners could reap $3 billion from the land rezoning and sale with approaches already made for $1 million per hectare.
“Given the extraordinary increase in land value this re-zoning will generate, it seems absurd not to capture any of the increase in land value,” she said.
Importantly, Mrs McArthur has argued that such funds should not go into consolidated revenue for projects elsewhere in the state.
“This money should be raised in Geelong and spent in Geelong.
“This giveaway is criminal. The infrastructure will still be required but will have to be paid for by all of us not benefiting from the land sale.
“It is the very definition of socialising the cost and privatising the profit.”
Mrs McArthur has asked the Minister for Planning to consider applying the Growth Areas Infrastructure Contribution, used in several other growth areas, in his C395 amendment approval.
“There is clearly no mechanism for any such levy to be raised by the City of Geelong. These receipts would fund the necessary capital expenditure.”
She said the city already faces a backlog of capital funding needs including the Bellarine Link road and the Northern Arc health hub; projects Mrs McArthur has also asked Ministers about in Parliament.
22 March 2021