Creek’s ‘slug’

Andrew Mathieson
A COUNCIL plan to slug developers millions of dollars for infrastructure will affect housing affordability in new Armstrong Creek suburbs, according to Urban Development Institute of Australia.
Institute Victorian executive director Tony Di Domenico said the proposed levies were “too high”.
He believed Geelong ratepayers should help foot the bill.
Council voted this week to seek State Government approval for a development contributions plan to fund infrastructure in the development’s east precinct, including water connections.
Council wants to charge developers nearly $220,000 for each hectare and an additional $774 for each new home.
Mr Di Domenico said the levy would hurt homebuyers.
“Ultimately, people have got to realise that it’s the consumer, the homebuyer, who ends up paying the costs. Why should only the homebuyers in Armstrong Creek pay for infrastructure that will be used by the rest of the community.
“I can tell you (the levy) is on the higher level of what they charge in metropolitan Melbourne.
“It depends on whether the council wants to have an affect on housing affordability but I think the lower the developer contributions, the lower the price of blocks of land.”
Council infrastructure portfolio-holder Andy Richards said the contributions plan was vital to funding Armstrong Creek infrastructure.
He defended the levies as a “very competitive figure”.
“I’m not sure the developers will embrace it but I don’t think they have any right to complain,” Cr Richards said.
“What it does is stop the ratepayers of Geelong subsidising that infrastructure.”
Cr Richards expected many submissions on the levy from developers and landowners.