Early delivery of much-needed public transport in Fishermans Bend has the extra benefit of unlocking revenue to help fund this essential infrastructure, Port Phillip City Council has told a federal Parliamentary Committee enquiry.
The Standing Committee on Infrastructure, Transport and Cities is considering submissions on increased connectivity and economic activity, with a particular focus on value-capture as a funding mechanism for infrastructure development.
Mayor Bernadene Voss said an independent report commissioned by Port Phillip had found early delivery of the $300 million Collins Street tram extension advocated by Council could result in a $1.1 billion uplift in value.
“The uplift generated for landowners and developers by this public investment could lead to about $200 million in extra revenue to State and Local Government through rates, stamp duty, development contributions and land tax as Fishermans Bend attracts more families and businesses,” Cr Voss said.
There could also be the opportunity for a more targeted levy for those with the biggest windfalls.
“As Australia’s biggest urban renewal project, Fishermans Bend is expected to become home to at least 80,000 residents and 60,000 workers over the next 40 years. Without adequate public transport, parking and traffic congestion problems will hamper our efforts to capture this rare opportunity to create a vibrant and liveable community where people want to live and work.
“The 2018 delivery of a “turn up and go” public transport link to the CBD, such as the Collins Street tram extension, remains a key Council priority and we welcome the Committee’s interest in exploring value capture as a funding mechanism for critical, city shaping projects.”
While the Victorian Government is responsible for delivering major transport infrastructure, such as public transport, the Federal Government can also provide funding. Council will continue to investigate options for value capture to help fund this critical investment to meet Port Phillip’s growing transport challenges.
Source: News Release, Urbanalyst, 22 February, 2016