Document identification of the land: Before any exercise of the leasing power, the corporation should obtain and record the precise plan referenced in the Schedule and the related Orders in Council cited in the preamble and endnotes. The Act’s leasing power applies only to the land "delineated and shown hatched on the plan in the Schedule" (s 5(1) and preamble). Confirmation of the exact boundaries and any existing reservations is a necessary first step.
Governor in Council approval: Any proposed lease under s 5 must be "subject to approval by the Governor in Council" (s 5(2)(c)). The corporation should ensure that an approval process is engaged with well before finalising lease terms. Recordation of approvals is essential because the Governor in Council approval is a statutory condition of the power to lease.
Maintain purpose and term limitations: Leases must be for sport, recreation or social activities connected therewith and may include erection of buildings (s 5(1)). Lease terms must not exceed 21 years (s 5(2)(b)). Draft leases to reflect these limits precisely, including purpose clauses, permitted uses, and term caps. Ensure that permitted building works are conditioned on compliance with applicable approvals and any reservation conditions the corporation imposes under s 5(2)(a).
Include covenants, conditions, exceptions and reservations: Section 5(2)(a) authorises the corporation to impose covenants, conditions, exceptions and reservations it thinks fit. Use that provision to protect the recreational character of the reserve, to safeguard public access where appropriate, to set maintenance obligations for lessees, and to manage capital works and lease surrender obligations. The Act does not prescribe specific covenants; they should be tailored to the particular lease.
Rent accounting and use: Rents received under leases must be applied by the corporation to maintenance and improvement of any part of the temporarily reserved land not leased under s 5, or to other purposes approved by the Minister (s 5(3)). Establish an accounting and reporting system that segregates rental receipts from other municipal funds and documents expenditure against the permitted categories. If seeking to apply rent income to any "other purpose," obtain and retain written Ministerial approval in accordance with s 5(3) before committing funds.
Document Ministerial approvals: Because application of rental income to non-maintenance uses requires Ministerial approval (s 5(3)), secure and retain written approval records. Include the approval instrument in the corporation’s financial control files to demonstrate compliance with the statutory direction.
Contracts and enforcement provisions: The Act does not set out enforcement mechanisms. Ensure leases contain clear enforcement, default and remedy clauses, including rights to re-entry, forfeiture, termination, damages, and requirements for restoration on expiry. While these are contractual mechanisms rather than statutory sanctions, well-drafted contractual protections implement the practical enforcement functions the Act does not supply.
Confirm corporate authority and corporate identity: The Act identifies the corporation as the corporation of the City of Dandenong (s 1(3)). Ensure that the entity exercising the powers under the Act is the legal entity statutorily identified and that any changes to local government identity, municipal boundaries or corporate status have been taken into account. Keep public records demonstrating the corporation’s status as committee of management (s 4) and authority to act under the Act.
Address the non obstante clause thoughtfully: The Act’s broad override in s 5(1) should not be used as a substitute for confirming compatibility with other statutory obligations not expressly displaced by the Act. Although the Act authorises leasing notwithstanding inconsistent Acts, the corporation should document how proposed leases align with the purpose limits in s 5 and how any apparent conflicts with other legislation are managed, particularly where approvals by other statutory agencies may still be necessary in practice.
Public transparency and consultation: The Act does not prescribe consultation requirements. Consider establishing internal policies that set out community consultation processes for proposed long-term leases affecting public recreation land, including publication of proposed lease terms and opportunities for stakeholder input. While not required by the Act, such practices can reduce disputes and provide documentary evidence of procedural propriety.
Record-keeping and audit trail: Maintain a compliance file for each lease that includes the hatched-plan identification, the Governor in Council approval, the lease instrument, rent receipts and their application, any Ministerial approvals for alternate rent use, and records of works carried out under the lease. Section 5(3)’s financial direction to apply rents to maintenance or Minister-approved purposes makes documentary evidence of expenditure particularly relevant.
Be mindful of s 6: Because the Act states that no compensation is payable by the Crown in respect of acts done under or arising out of the Act (s 6), do not assume that a statutory compensation pathway exists for parties affected by the revocation or leasing. Where third-party rights or expectations are implicated, the corporation should consider contractual mitigations in lease negotiations.
Confirm legal advice where needed: The Act grants significant powers and includes executive approval gates that are undefined in procedure and scope. Obtain legal advice on the content of lease covenants, the form and process for securing Governor in Council and Ministerial approvals, and the interaction of the Act with any other statutory obligations that may operate in practice, especially where the corporation proposes building works or capital improvements.