Questions remain on special economic zone for CBD

CITY of Greater Geelong mayor Stretch Kontelj says his proposed Special Economic Zone (SEZ) will increase the viability of stalled housing projects in Geelong’s CBD and make the area a magnet for developers.

A SEZ has never been established in Victoria and there are several unanswered questions about how it would work here, but Cr Kontelj remains convinced it is the right option.

“Our city will never reach its full potential with its current CBD, and while an SEZ isn’t the only solution, it would go a long way toward driving the private investment and economic development we desperately need,” he said last week.

There are reportedly as many as 20 approved projects for development in Geelong’s CBD.

Cr Kontelj said a Geelong SEZ would include incentives such as land tax and stamp duty concessions, reduced fees and charges, a financial backing scheme to support pre-sales for infill housing and streamlined regulatory processes.

“These factors would make central Geelong highly attractive to private investment and development, including by making projects more financially viable, especially marginal or stalled projects,” he said.

“Streamlined approvals would get development and solutions moving faster and encourage investment in underutilised sites in central Geelong.”

However, the specifics of the SEZ are not clear, including where the SEZ would apply, when it would begin or end, how quickly its effects could be seen or its impact on ratepayers.

Cr Kontelj said he was seeking support for the SEZ from candidates running for the seat of Geelong in November’s election and would be happy to discuss the SEZ’s implementation and timeline with them. The Liberals pledged to establish a SEZ in east Werribee if they won the 2022 state election.

The closest thing in Victoria to a SEZ is the Latrobe Valley Economic Growth Zone, adopted in November 2016 over three municipalities in response to the closure of the Hazelwood power plant.

The initiative aimed to create jobs and grow local businesses by reimbursing a range of government fees and charges as well as property transactions.

Cr Kontelj said reduced fees and charges in Geelong’s SEZ would not cost governments anything, as they would stimulate new projects not presently generating revenue.

“Down the line, government revenue would actually increase from greater economic activity, and reductions in charges are likely to be temporary to get new projects moving,” he said.

“I’d be keen to develop a uniquely Geelong solution with other levels of government, with targeted initiatives that meet our unique challenges.

“This has a strong chance of succeeding if we can get all the levels of government to work together collaboratively on this idea: that’s the first step, and that’s what I’m advocating for.”