Mornington Peninsula Shire to allow Airbnb to keep using $550k of Crown Land

Mount Martha residents are demanding answers over a “secret deal” that allows a clifftop Airbnb to occupy a huge chunk of public land.

A second driveway, letter box and landscaping are part of the works Mount Martha residents claim have narrowed the unsealed road they live on, making it unsafe. Picture: Lucy Callander

Clifftop residents on a secluded Mornington Peninsula street are seething over a neighbour’s apparent land grab worth $550k.

Residents along Mount Martha’s Esplanade say the local council is “turning a blind eye” to alleged encroachment of Crown Land that makes the dead end, dirt road they live on “dangerous”.

They believe Mornington Peninsula Shire was working on a “secret deal” that would allow an Airbnb owner to continue to occupy up to 277m2 of public land, including a road reserve.

The deal would allow the owner to keep multiple stone retaining walls, a 1200mm high stone letterbox, concrete paved area to accommodate up to six vehicles and a second driveway – all built on public land.

Mature pencil pines and a large front lawn have also been planted on the land.

Aerial view of a Mount Martha property at the centre of 'land grab' claims. The shaded area shows apparent works carried out on public land. Picture: Nearmap

Retaining walls, pencil pines and vegetation raising eyebrows in Mount Martha. Picture: Lucy Callander

The Herald Sun understands the work being disputed was carried out before the current owner took over the property.

Angry residents have questioned why the council was not fighting the encroachment with the same vigour it applied to a company owned by billionaire trucking tycoon Lindsay Fox.

In 2019 Fox’s company was fined $20,000 for illegally replacing beachside vegetation with a massive lawn in front of a $30m Portsea estate.

Lindsay Fox near his Portsea beach house. Picture: Stuart McEvoy.

Liberal Mornington MP Chris Crewther has called on the state government to intervene in the Mount Martha case.

He was concerned about the precedent it set for future encroachments on Crown Land.

“There are concerns that the owner is preparing the property for sale and, if so, would benefit financially due to the windfall gift of a 31 per cent increase in perceived allotment area, estimated to be in the order of $546,521, a value based on council rates,” Mr Crewther said.

“It seems unconscionable to me, as well, that the property owner would seemingly be rewarded for doing the wrong thing, which would occur via any upcoming property sale.”

Cr Anthony Marsh said no one should have private use of public land they have not purchased from the community.

He said encroachments were “increasingly becoming an issue across the Mornington Peninsula”.

“Councillors are keen to address the ongoing problem,” Mr Marsh said.

The shire has not responded to questions about the Mount Martha property or any potential deal.

However, documents seen by the Herald Sun revealed that lawyers acting for the council were preparing a “binding legal agreement” that would allow the encroachment works to remain indefinitely.

The deal, to be registered with Lands Titles Office, would indemnify the council for any damage or loss and require the property owner to hold public liability insurance for the part of the road reserve where the encroachment works and landscaping were located.

Those living in the street said the agreement was not a solution.

The Mount Martha property that neighbours claim is encroaching on Crown Land is primarily used as an Airbnb that sleeps up to 11 people. Picture: Airbnb

They believed the retaining walls and vegetation had reduced the width of the road, leaving motorists with nowhere to “pull over” to accommodate a vehicle travelling in the opposite direction.

The Esplanade property was advertised on Airbnb for week-long holidays for up to $1100 a night during peak season.

An online listing described the property as being “one of the few places in the area with free parking”.

The Herald Sun understands an official complaint about the encroachment was made to the council in 2017 and residents were initially told the property owner would be ordered to remove the retaining walls and vegetation.

However, the work was not done, and in January, 2021 the council said that because of “climate change” it was not possible to return the road to the condition it was in before the encroachment.

“Due to frequent and intense rainfalls in recent years due to climate change, with some eight landslips in the last year, returning the road to the same condition it was in some 17 years ago is not achievable or sustainable,” an email from the council to a resident said.