End in Sight for Fishermans Bend Funding Roadblock

After years of twists and turns, the end appears to be finally in sight for the policy behind funding infrastructure for Australia’s largest urban renewal area: the Fishermans Bend Urban Renewal Area. The 480ha site straddles two local government areas: the City of Melbourne and the City of Port Phillip. For years, developers have bought, sold and held sites within the precinct and developed projects along its edges. Work on the Fishermans Bend Innovation Precinct has also begun. But while the Victorian Government says it wants to develop the area to house more than 80,000 residents and create 80,000 jobs, doubt over the infrastructure needed to make that happen has stymied progress. The process According to the 2019 Fishermans Bend Framework, the area needs two tram routes, potentially two train stations and tracks, public open space, major roads and community infrastructure, within its five precincts—Lorimer, Wirraway, Montague, Sandridge and Employment Innovation Cluster. An Infrastructure Contributions Plan was ruled out as the precinct is not a greenfield site. That prompted the creation of a Development Contribution Plan, included in a draft Amendment GC224 for the Port Phillip and Melbourne Planning Schemes. Victorian planning minister Sonya Kilkenny referred the draft amendment to the Precinct Standing Advisory Committee on March 17, 2024. It reported to the planning minister with its advice in a two-part report on April 7 of this year, which were made public later that month. The next step will be the planning minister formally approving the draft amendment with the planning committee’s recommended changes. Summary of infrastructure contributions Facility Development infrastructure Community infrastructure Residential / home Residential / square metre Nonresidential / square metre Community residential / home Residential / square metre Transport, local distributed storages &amp; community infrastructure $23,622 $195 $195 $1346 $11 Open space &amp; recreation infrastructure $6667 $55 $55 Major drainage &amp; flood mitigation $3000 $25 $25 TOTAL $33,289 / home $275 / sq m $275 / sq m $1346 / home $11 / sq m Source: Draft Planning Scheme Amendment GC224, Precincts Standing Advisory Committee Report Referral 1 Volume 2, 7 April 2025 The recommendations Two main funding infrastructures via development contributions have been proposed in the draft. A Fishermans Bend Development Contribution Plan would set a fee level for contributions to be collected from developers. The amendment estimates that this would collect 71 per cent of the costs—$1.75 billion of a total $2.44 billion. The other, an Open Space Uplift plan, would allow the development of public open space in return for expanded provisions, such as increased height limits. This would push the total costs collected to 94 per cent. The Victorian Government therefore would need to find a way to fund the remaining 6 per cent. Several developers and other concerned parties made submissions to the Precinct Standing Advisory Committee. These included Goodman Group, Beulah SB Nominees, ID Land, Monno, Normanby Road Developments, Claric 178, Three Eight Holdings, and BWP Trust. Three Eight Holdings’ director is David Scalzo of Perri Projects while Elite Property Group’s Leo Iazzolino is the director of Normanby Road Developments. The City of Melbourne and the City of Port Phillip also made submissions as did Melbourne Water. The fees The reports set out costs of the infrastructure needed and the rates for the infrastructure contribution fees, which will be finalised when the amendment is gazetted by the minister. There are also interim infrastructure contribution costs included. As of March last year, the Victorian Planning Authority (VPA) held $46.4 million in interim contribution charges paid, of which $10.1 million had been used for delivering Kirrip Park. The remainder is to be held by the VPA and used for projects under the Fishermans Bend Development Contributions Plan. The current interim charges are $27,968 a home and $231 a square metre of non-residential floor space with an 8 per cent public open space contribution. Updated interim charges include $3000 for major drainage and flood mitigation works. Infrastructure costs, Fishermans Bend Urban Renewal Area Facility Total cost ($) Actual cost contribution attributable to development ($) Proportion of cost attributable to development (%) Roads - DIL $960,503,932 $960,503,932 100% Intersections DIL $109,334,213 $109,334,213 100% Bridges- DIL $75,289,000 $37,644,500 50% Distributed storages- DIL $31,447,608 $31,447,608; 100% Art &amp; cultural hub - DIL $23,616,000 $23,616,000 100% Art &amp; cultural hub - CIL $120,010,000 $34,802,900 29% Open space - DIL $665,315,958 $665,315,958 100% Recreation facilities- DIL $44,460,000 $44,460,000 Recreation facilities - CIL $61,597,000 $17,863,130 29% Major drainage &amp; flood mitigation - DIL $301,700,000 $301,700,000 100% Subtotal: major drainage &amp; flood mitigation $301,700,000 $301,700,000 Source: Draft Planning Scheme Amendment GC224, Precincts Standing Advisory Committee Report Referral 1 Volume 2, 7 April 2025 Fishermans Bend Innovation Precinct Winslow Infrastructure has been appointed to complete the main work for Stage 1 of the Fishermans Bend Innovation Precinct. The precinct is planned for the former General Motors Holden site, creating an east-west connection across Fishermans Bend by linking Salmon Street and Todd Road, which in turn will help unlock development-ready lots for investment. The first stage will create roads, a public park and necessary infrastructure for an advanced manufacturing, engineering and design precinct. A new School of Engineering and Design campus for the University of Melbourne is due to open at Fishermans Bend next year to connect students with researchers and industry partners. The Victorian Government has invested nearly $180 million to kickstart the precinct and endorsed the preferred route for a future rail tunnel as part of Metro 2 through Fishermans Bend and Docklands. Planning work has also begun on a future tram connection.

End in Sight for Fishermans Bend Funding Roadblock

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