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City of Melbourne Amendment
(Environmental Upgrade Agreements)
Bill 2012
Introduction Print
EXPLANATORY MEMORANDUM
Clause Notes
Clause 1 sets out the purpose of the Bill, which is to amend the City of
Melbourne Act 2001 to further provide for environmental
upgrade agreements and to make other miscellaneous
amendments.
An environmental upgrade agreement is a tripartite agreement
between the Melbourne City Council, the owner of a non-
residential building in the City of Melbourne and a lending body.
Under such an agreement, the lending body advances funds to the
building owner to finance approved environmental upgrades and
the Council levies an environmental upgrade charge to recover
the funds and repay the lending body.
Clause 2 provides for the commencement of the Bill. Claues 1, 2 and 5
come into operation on the day after Royal Assent.
The remaining provisions come into operation when proclaimed
or on 1 July 2012, if not proclaimed by that date.
Clause 3 inserts a definition of "capital improved value" in section 27L of
the City of Melbourne Act 2001. Capital improved value is
defined to have the same meaning as in section 2(1) of the
Valuation of Land Act 1960.
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Clause 4 amends section 27N of the City of Melbourne Act 2001.
Subclause (1) substitutes a new section 27N(1)(a) to
prohibit the Melbourne City Council from entering into
an environmental upgrade agreement until 28 days after
it has received the signed statutory declaration from the
building owner in accordance with new subsection (4)
(as inserted by subclause (3)).
Subclause (2) inserts a new section 27N(1)(d) to
prohibit the Melbourne City Council from entering into
an environmental upgrade agreement unless the total
amount owing in respect of taxes, rates, charges and
mortgages when added to the proposed environmental
upgrade charge, does not exceed the capital improved
value of the property prior to the upgrade works.
Subclause (3) substitutes new subsections (3) to (6) in
section 27N.
New subsection (3) describes the specific
information that the building owner must provide
in a notice to the Council about debts owing on
the land. This includes details of all registered
and unregistered mortgages plus all taxes, rates
and charges imposed by or under an Act.
New subsection (4) requires the building owner
to give the Council a signed statutory
declaration. The statutory declaration must state
that the owner has notified all existing mortgage
holders of the proposed environmental upgrade
charge and that the details provided by the owner
about taxes, rates, charges and mortgages is
accurate and complete.
New subsection (5) describes how the amount
owing on a mortgage is to be calculated when a
mortgage is held over multiple properties.
New subsection (6) defines "existing mortgagee"
to include the holders of both registered and
unregistered mortgages.
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Clause 5 amends section 5(1) of the City of Melbourne Act 2001 to allow
section 220Q(i), (j), (k), (l) (m) and (n) of the Local
Government Act 1989 to apply to the Melbourne City Council.
This removes an inconsistency with section 6A of the City of
Melbourne Act 2001.
Clause 6 repeals the Bill on 1 July 2013. This repeal does not affect the
continuing operation of the amendments made by this amending
Bill (see section 15(1) of the Interpretation of Legislation Act
1984).
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