Page 3777 - Week 10 - Thursday, 14 September 2017
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Planning—lease variation
(Question No 375)
Ms Lee asked the Minister for Planning and Land Management, upon notice, on 4 August 2017:
(1) What would be the charge for varying the lease of a shop in the Hackett Shops from food retail to another business.
(2) What would be the charge for varying the lease of the Girl Guides building on the Hackett Oval to allow it to be a place of worship.
(3) What is the Government doing to minimise the frictions lease variation costs present to small businesses and community organisations.
Mr Gentleman: The answer to the member’s question is as follows:
(1) There would be no lease variation charge if the site was still to be used for the purpose of a shop and shop is a permitted use in the Crown lease. A shop is defined in the Territory Plan as meaning the use of land for the purpose of selling, exposing or offering the sale by retail or hire, goods and personal services. A shop includes a number of different types of businesses (for example, a butcher, chemist, grocer or camping supplies store).
The lease variation charge for varying a Crown lease to add an additional use that is not permitted by a Crown lease is considered a section 277 chargeable variation under the Planning and Development Act 2007, which means that the lease variation charge is determined through a valuation exercise and obtaining a valuation report to determine the value uplift of adding a new use. This would depend on the current market value at the time a decision was made to approve a new use being added to a Crown lease. If there is no increase in the value of the land, the lease variation charge would be ‘nil’.
(2) The lease variation charge for varying a Crown lease to add an additional use that is not permitted by a Crown lease is considered a section 277 chargeable variation under the Planning and Development Act 2007, which means that the lease variation charge is determined through a valuation exercise and obtaining a valuation report to determine the value uplift of adding a new use. This would depend on the current market value at the time a decision was made to approve a new use being added to a Crown lease. If there is no increase in the value of the land, the lease variation charge would be ‘nil’.
(3) There are a number of remissions and incentives in place to assist with lease variation charge costs. For example, there is currently an exemption for lease variation charge to add the use of child care centre to a Crown lease. There is also currently an economic stimulus remission package in place that provides a 25% discount on an LVC to vary a Crown lease where a building is also being constructed, if the LVC is a section 277 chargeable variation (and not a codified lease variation charge). The Government regularly reviews LVC provisions and initiatives.
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