City rakes in millions from construction fees

THE construction boom in central Melbourne has delivered the city council a multi-million-dollar windfall thanks to fees collected from road and footpath closures.

THE construction boom in central Melbourne has delivered the city council a multi-million-dollar windfall thanks to fees collected from road and footpath closures.

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New figures show that Town Hall’s coffers were boosted by more than $2.5 million in the past five years from levies placed on construction companies and developers.

Almost $150 a day is collected when a big project closes a traffic lane.

Fees are also paid when footpaths and other public areas are taken over to make way for construction equipment and access.

Almost $150 a day is collected when a big project closes a traffic lane. Picture: Jay Town

Most revenue was collected during the financial year 2013-14 when almost $700,000 — or close to $2000 a day — was paid. This year is already on track to raise $500,000 for the city budget.

The high-rise apartment boom, especially in Southbank and Docklands, has helped fuel the revenue. Major construction has flourished within the municipality in recent years, with high-rise projects such as Prima Pearl on Southbank, CBD skyscrapers 568 Collins St and 500 Elizabeth St, and buildings in the Upper West Side precinct on Spencer St.

City of Melbourne spokeswoman Kathy Alys said the safety of all road users was important and the aim was to limit the impact on pedestrians, public transport, vehicles, cyclists and freight.

The council also runs checks on whether roads or footpaths are illegally blocked and can issue penalty notices of $1000.

“Officers will issue a penalty and ensure that the unauthorised works/road blockages are removed immediately,’’ Ms Alys said.

Major construction has flourished in the city of Melbourne in recent years. Picture: David Crosling

The Melbourne Metro Rail Authority’s takeover of City Square will require compensation to be paid under acquisition laws. The square was closed last week as work starts on the $11 billion cross-city rail tunnel project.

The Metro authority has acquired the space for about the next five years.

In other worksites around the city, it is expected that no fees will be paid if work is done within the Metro’s “declared project area”.

But contractors working on the 10-year project may have to pay council fees if they operate outside that area.

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@IanRoyall