The Building Owners and Managers Association condemned the ACT Government yesterday for failing to have a policy on renewal of commercial leases.
BOMA’s ACT president, Tony Hedley, said the automatic-renewal policy of 99-year residential leases was a good one, but there was no policy on what would happen when a commercial lease ran out. This was worrying for owners and financiers.
Financiers did not understand the ACT’s leasehold system very well and it made the ACT less competitive for development over the states.
He told a BOMA lunch that he had invited the Minister for Environment, Land and Planning, Bill Wood, to put the Government’s position at the lunch.
Mr Wood, however, could not attend because of events at the Legislative Assembly. A senior public servant from his department read his speech.
A copy of the speech said, “”To be honest, this is not a matter that the Government has considered in detail.”
But pending a full review commercial lessees would be able to review under conditions laid down by the Federal Government in 1980. If the lease had fewer than 15 years to run the lesseee would be charged full commercial value. If it was more than 15 years it could be extended to 99 years upon payment of 10 per cent of value.
Mr Hedley said also that since changes to betterment taxes last year there had been a stop to commercial development and redevelopment in Civic. Once again, there was no betterment tax in other states and the ACT was missing out on investment.
Mr Wood’s speech, however, said the betterment changes were designed to prevent a rush of inner city development and a large public backlash. He listed several redevelopments in Civic which he said would make the area more vibrant. He said a consultant was looking at revitalising Garema Place.
Canberra was doing better than cities elsewhere with vacancy rates of 20 to 30 per cent caused by suburbanisation and special-purpose sites outside the centres.
The Government was undertaking as planning, design and safety audit of Civic to develop policies to counter its reputation as being unsafe at night.
The Government would stand by its policy on limiting Civic to 20 per cent of Canberra’s jobs.
Traffic studies had shown Canberra’s average vehicle kilometrage had gone up 2 per cent from 1976 to 1988, whereas other capitals had gone up 10 per cent. This showed the success of the town-centre policy.
On the Gungahlin town centre, Mr Wood said he was concerned that large malls excluded local investors and community uses like Post Offices and health uses and resulted in traders being disadvantaged with rent and leases.
However, he had an open mind and the Government had not decided on the design, construction and management of the centre.