Page 768 - Week 03 - Thursday, 21 May 1992
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(2) Mr Kerrigans original lease did not impose a limit on the size of the nursery and the land rent for the block was assessed accordingly.
In 1985 the Department agreed with Mr Kerrigan that a limit on the nursery area would reduce the land rent payable. An offer was made to reduce land rent if Mr Kerrigan proceeded with his request to vary the lease purpose clause to allow 1200 sq.. of nursery.
At the time these negotiations were underway, Mr Kern lodged an appeal with the Administrative Appeals Tribunal (AAA) against the rental assessed in 1983 for his property. That rental was based on the unrestricted nursery area.
The AAA decided the appeal in Mr Persons favour and assessed a lower rent figure. In its judgement, the Tribunal indicated that it assessed rent on "an assumed 2,000 sq.. nursery site under the existing lease terms".
Because the AAA reduced the rent on the nursery area then permitted by the lease,
the underlying valuations for the rent on 1200 sq.. were affected. Revised (lower)
rental. figures were obtained and offered to Mr Robertson. _ .
The AAA expressed a view that 2,000 sq.. was the optimum area for nurseries. As a result, for the 1987 rent assessment in Pialligo, the Departments valuer adopted 2,000 sq.. as the area m be assessed for nursery rentals.
(3) Some thirty months after receiving the Departments 1985 offer, Mr Kerrigan returned a Certificate of Variation and he amended it to provide for 2,000 sq.. of nursery.
The offers made to Mr Kerrigan in 1985 related to 1200 sq.. of nursery. No offers were made for the area of 2,000 sq.. Mr Kerrigan included in the Certificate of Variation he returned in 1988. It is therefore not correct to say that Mr Kerrigan accepted the Departments offer.
Mr Kerosene sought backdating of land rent to 1984, but it was pointed out to him that the date of effect of the Certificate was the date it was executed, ie. March 1988.
The Delegate was therefore unable to ague to Mr Kerrigans request.
(4) In its 1990 Decision on a rental appeal by Mr Kerrigan, the Administrative
Appeals Tribunal suggested that future rent assessments should take account of the
actual areas set aside for nursery activities in Pillage, rather than setting a
maximum area of 2,000 sq.. This approach was adopted by the Australian Valuation
Office for the 1991 rent review and explains why the valuation on similar
properties rose in relation to Mr Kerosenes property.
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