Victorian Environment Minister Lily D’Ambrosio should have oversight over AGL’s negotiations as its buys back underleases, Member for Benambra Bill Tilley believes.
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Cabin operator Andrew Lewis claims AGL has requested of the Department of Environment, Land, Water and Planning that they “let them out of their lease”.
AGL has a 99-year head lease for the Kiewa Hydro-electric Scheme, Bogong Alpine Village Pty Ltd operates on a sublease, and most of the underleases for lots in the village are held by individual stakeholders.
A DELWP spokesman did not confirm if AGL had sought to exit the lease but said DELWP were aware of the negotiations and that “the Bogong Village sublease and any tenancies under it are a matter for AGL”.
“As this is a contractual matter for AGL to resolve it would be inappropriate to comment further,” he said.
AGL told cabin operators in April of plans to acquire underleases (which run until atleast 2028) and to partially surrender Bogong Village to the Crown.
The Border Mail understands if a lease over Crown land is to be surrendered to the Crown, it needs to be unencumbered, a suitable land manager appointed and the site used for public purposes.
Responding to comments made by underlessees in Saturday’s The Border Mail, including AGL’s offer of $90,000 not being “market value”, Mr Tilley said he has asked AGL to explain “the increase in service management fees in the past 12 months and into the future”.
“They have promised some detail around that,” he said.
“What concerns me is the ‘one size fits all’ approach to AGL’s offers – I’ve written to AGL asking if there was an opportunity to revisit those offers and they have said ‘No’.
“At the end of the day it is a commercial decision by AGL, and I would hope that the owners of the cabins had done their due diligence when they first bought into the village.
“There needs to be some clarity around the leases, there needs to be some direction from the Environment Minister that respects all parties, AGL and the tenants, involved in this matter.
“Ultimately, it is her responsibility to manage the Crown Reserve.”
A spokesman for Ms D’Ambrosio said the government was aware of the negotiations and it would be inappropriate to comment further.
An AGL spokesman has previously stated the long-term plan for the village would be a decision for any new operator, though it is not considered saleable due to complex lease arrangements and other factors.
“We continue to … progress these offers (to Bogong Village holiday cabin underlessees) in a co-operative, open and respectful manner,” he said.
“A professional market valuation and an analysis of the village formed the basis of the offers (and) under the acquisition offers, the village will continue to operate under existing management arrangements until 31 January 2020.
“Details of the village’s operational costs have been made available to the underlessees.”
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