Industrial leases and industrial development leases
137A Industrial leases and industrial development leases
S. 137A inserted by No. 8763 s. 2(1) (as amended by No. 9126 s. 3(1)).
S. 137A(1) amended by Nos 9427 s. 6(1)(Sch. 5 item 77), 9567 s. 20.
The Governor in Council may, on the recommendation of the Minister given with the concurrence of the Minister for the time being administering the Economic Development Act 1981, grant to any person—
an industrial lease; or
an industrial development lease—
of Crown land outside the metropolitan area for the establishment or expansion of an industrial undertaking.
S. 137A(2) amended by No. 9567 s. 20.
The Governor in Council may, on the recommendation of the Minister given with the concurrence of the Minister for the time being administering the Economic Development Act 1981 grant to any person an industrial development lease of such Crown lands as would be reasonably required for the housing of persons engaged or to be engaged in an industry to be established or expanded outside the metropolitan area.
S. 137A(2A) inserted by No. 96/1994 s. 14(1).
Without limiting subsection (1) or (2), a lease granted under either of those subsections may contain—
options for the lessee to renew the lease for a further term or terms; and
provision for a lessee to remain in occupation of the land under the same terms and conditions as existed under the lease, at the discretion of the lessor, for a period not exceeding 3 months from the expiry of the lease.
S. 137A(3) substituted by No. 10011 s. 11.
An industrial lease granted under this section shall be granted for a term not exceeding fifty years except that where the Minister is satisfied that a building erected or to be erected under a covenant in the lease is or will be of a substantial nature and of a value which justifies it the Governor in Council may grant a lease of the land for a term not exceeding 99 years.
S. 137A(3A) inserted by No. 96/1994 s. 14(2).
In the case of a lease under subsection (3), if the lease contains options for renewal of the lease by the lessee, the aggregate of the original term and the further term or terms must not exceed—
50 years; or
if the Minister is satisfied that a building erected or to be erected under the lease is or will be of a substantial nature, 99 years.
An industrial development lease granted under subsection (1) or subsection (2) shall be for a term not exceeding five years and shall be subject to the payment of such rental and such building and development covenant and other covenants conditions exceptions and reservations as the Governor in Council thinks fit.
S. 137A(4A) inserted by No. 96/1994 s. 14(3).
In the case of a lease under subsection (4), if the lease contains options for renewal of the lease by the lessee, the aggregate of the original term and the further term or terms must not exceed 5 years.
S. 137A(5) amended by Nos 9427 s. 6(1)(Sch. 5 item 77), 9567 s. 20.
After the expiry of a period of two years from the date of an industrial development lease or such earlier time as the Minister for the time being administering the Economic Development Act 1981 approves in any particular case the lessee may apply for a Crown grant or an industrial purchase lease and provided that all the covenants and conditions of the lease have been complied with to the satisfaction of the Minister and the Minister for the time being administering the Economic Development Act 1981 the lessee shall be entitled to such grant or lease.
Where an industrial purchase lease is granted under subsection (5) it shall for the purposes of subsection (3) of section 61 be deemed to be granted in substitution for the industrial development lease.
Where a lessee obtains a Crown grant or an industrial purchase lease under subsection (5) the industrial development lease of the land shall cease to have any force or effect.
The purchase price of the land the subject of any Crown grant or industrial purchase lease shall be fixed by the Governor in Council.
An industrial purchase lease shall be for a term not exceeding twenty years and shall be subject to payment of such instalments and interest and such covenants conditions exceptions and reservations as the Governor in Council thinks fit.
On payment of the purchase price and interest the lessee of an industrial purchase lease shall be entitled to a Crown grant.
The lessee of an industrial lease, an industrial development lease or an industrial purchase lease shall not assign or encumber his interest in the land without the consent of the Minister.
S. 137A(12) substituted by No. 14/2024 s. 4(1).
If the Minister is satisfied that the lessee of an industrial lease, an industrial development lease or an industrial purchase lease has failed to comply with any covenant or condition of the lease, the Minister must—
give the lessee a notice specifying—
the non-compliance; and
the date, being not less than 30 days from the date of the notice, by which the lessee must rectify the non-compliance; and
give every mortgagee of the lessee's interest a notice—
specifying the non-compliance; and
inviting the mortgagee to make written submissions to the Minister regarding the non‑compliance within 30 days after receiving the notice or any longer period specified in the notice.
S. 137A(12A) inserted by No. 14/2024 s. 4(1).
If the lessee does not rectify the non‑compliance specified in the notice under subsection (12)(a) within the specified period, the Governor in Council, after considering any submissions made in accordance with subsection (12)(b), may declare, by notice published in the Government Gazette, that the lease is forfeited.
S. 137A(13) amended by No. 14/2024 s. 4(2).
Upon the making of a declaration under subsection (12A) the interest created by the lease shall cease and determine and the right and title of the lessee in and to the lease and the land therein described and all moneys paid thereunder shall be forfeited.
On forfeiture of the lease the lessee shall if so required by the Minister remove all buildings and improvements erected by him on the demised land making good to the satisfaction of the Minister any injury to the land.
Any such building or improvements not removed within such period as the Minister directs shall be the property of the Crown and may be sold removed demolished or otherwise dealt with as the Minister may direct and the costs and expenses of and incidental to any sale removal demolition and the making good of any injury to the land to the extent to which they exceed the net price received from the sale of any improvements or buildings shall be a debt due to the Crown by the former lessee.
A Crown grant issued pursuant to this section shall contain such conditions exceptions and reservations as the Governor in Council thinks fit.
S. 137A(17) amended by No. 45/1987 s. 205(Sch. item 39), substituted by No. 85/2006 s. 173(Sch. 1 item 2.1).
In this section metropolitan area means—
metropolitan area within the meaning of section 201 of the Melbourne and Metropolitan Board of Works Act 1958 (as in force immediately before its repeal); or
any area declared by the Governor in Council under subsection (18) to be the metropolitan area.
S. 137A(18) inserted by No. 85/2006 s. 173(Sch. 1 item 2.1).
The Governor in Council may, by Order published in the Government Gazette, declare an area to be the metropolitan area for the purposes of this section.
S. 137A(19) inserted by No. 85/2006 s. 173(Sch. 1 item 2.1).
An Order made under subsection (18) may apply, adopt or incorporate any matter contained in any document formulated, issued, prescribed or published by any person, whether—
wholly or partially or as amended by order or other instrument; or
as formulated, issued, prescribed or published at the time the order is made or at any time before then.
S. 137A(20) inserted by No. 85/2006 s. 173(Sch. 1 item 2.1), amended by No. 51/2016 s. 20.
Subsection (19) does not apply to the incorporation of a map or plan of an area of land unless the map or plan is lodged in the Central Plan Office.
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