Crown dodges $60m in fees on Southbank skyscraper

Crown Casino has dodged State Government planning legislation and saved itself more than $60 million in fees ahead of construction of Melbourne’s tallest skyscraper.

In a decision that has raised the ire of critics, the gambling and entertainment giant convinced Victoria’s Andrews Government that its site at Southbank should not be bound by revamped planning legislation.

Under the new guidelines pushed through last year, the casino would have been forced to pay more than $133 million in fees and taxes.

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But in a review of the project and a plea to Planning Minister Richard Wynne, Crown and its development partner Schiavello will fork out just over half that — $72 million — in a deal to build what will be Melbourne’s largest skyscraper.

Plans for Queensbridge Hotel Tower, a six-star, 90-storey project were unveiled in February.

Under its bid for a review, Crown argued the development would have significant economic and employment benefits for the state including $1.7 billion in project costs and more than 3000 direct and indirect jobs created during the four year building phase.

Crown had the cost of its public improvement works slashed by more than half to $65 million

Crown also said that once completed the State Government would also reap the rewards of up to $20 million in incremental gaming taxes in the first decade.

In his explanation of the amendment, Wynne says the social and economic requirements of the development have been met.

“The amendment facilitates a mixed use development which will deliver significant economic benefits,” Wynne says.

Crown had the cost of its public improvement works slashed by more than half to $65 million.

A $7 million open space fee that would have been paid to the City of Melbourne was also waived.

In a report on the matter, Melbourne City Council is critical of the project’s mass, height and setbacks and says the proposed footbridge will block city views.

“The bridge will encourage visitors and inhabitants to remain inside,” the report states.

But the department has stood firm over its decision, saying the planning scheme amendment has secured a significant investment.