By Casey Neill
A levy on development is deterring investment in central Dandenong, says Greater Dandenong Council.
At the Monday 12 February council meeting, Cr Jim Memeti successfully moved that the council write to the Premier and Leader of the Opposition.
The letter will re-affirm “the informed and previously advocated position of council” that the five per cent Infrastructure Recovery Charge (IRC) is “a significant barrier to private development in central Dandenong”.
It will say that urgent steps are needed to remove or amend the IRC “to realise benefits from recent public investment and to attract more private investment into the activity centre”.
Cr Memeti said the levy was deterring people who want to develop in central Dandenong.
“We are telling them that this levy needs to come off,” he said.
Cr Tim Dark said developers being “flogged five per cent” was “just unfair”.
“It is vital we can secure as much private investment as possible,” he said.
The IRC is part of the Revitalising Central Dandenong (RCD) project.
RCD was made possible through a $290 million investment from the State Government.
The IRC came into operation on 1 September 2006 to help the State Government to recoup this investment.
It’s to remain in place until 31 December 2026, or until the investment is recouped.
The IRC is based on five per cent of the building works, or the estimated site value of the land to be subdivided, or a combination of building works and the estimated site value.