Land (St Kilda Triangle) Act 2006

The central concept is the St Kilda triangle land. This is defined in s 3 as comprising both the land temporarily reserved under s 7 (Schedule 3) and the land temporarily reserved under s 8 (the cross-hatched area in Schedule 3 that becomes reserved through the survey mechanism). The term covers the primary development site. It does not include the land reserved under s 9 (St Kilda Esplanade). The Act creates two categories of reserved land: the triangle land (subject to the special leasing powers in s 12) and the Esplanade land (which remains under standard Crown Land (Reserves) Act 1978 rules).

A stratum is defined in s 3 as a part of land consisting of a space of any shape above or below or partly above and partly below the surface, all the dimensions of which are limited. This definition is critical because s 12 allows leases that include a stratum of land, and imposes specific pre-conditions for such leases: access, non-interference with other land rights, support rights, and services passage. The stratum concept enables leasehold over subterranean car parks, skybridges, or airspace developments, which is typical for a mixed-use foreshore project.

Temporary reservation under s 4(1) of the Crown Land (Reserves) Act 1978 is a statutory form of Crown land reservation that is by definition not permanent. It can be amended or revoked by Order in Council. The Act uses the phrase "is deemed to be temporarily reserved" in ss 7(1), 8(3)(e) and 9(1), meaning the ordinary process of executive reservation is bypassed and the land is reserved by force of this Act, but s 10 preserves the ability to deal with it further under the Crown Land (Reserves) Act 1978, so the reservation is not frozen.

The committee of management under the Crown Land (Reserves) Act 1978 is the body responsible for the care, control and management of reserved land. The Act deems Port Phillip City Council to be the committee of management for all land reserved under ss 7, 8 and 9 (see ss 7(2), 8(3)(f), 9(2)). This is a departure from the usual default which might be a Crown land manager or another body, but the preamble expressly states this intention. The Council therefore has the power to grant leases under s 12, but with Minister approval.

The leasing framework under s 12 is the core commercial concept. A lease may be granted for "the purpose of the construction or use of buildings, works, facilities or public open space for retail, tourism, entertainment, commercial or cultural purposes." This is a broad list but does not include residential use. The initial term cap of 50 years, with extensions up to a total of 99 years, is a significant departure from the standard 21-year maximum for leases of reserved Crown land under the Crown Land (Reserves) Act 1978. The Minister's approval requires that if the lease precedes construction, it must contain a covenant to build buildings, works or facilities of a substantial nature and value to justify the term. This is a safeguard against speculative leases that lock up land without development. For stratum leases, the Minister must be satisfied that access, non-interference, support and services are addressed, which imposes a legal risk allocation on the lessee and the Council.

The concept of public purposes is used in the reservation but the Act does not define it; it relies on the generic language of the Crown Land (Reserves) Act 1978. However, s 12 expressly permits leases for commercial, retail, entertainment and cultural purposes, which strongly suggests that the public purpose for this site has been interpreted to include mixed-use development that provides public open space. The Preamble says further development is proposed; the Act does not mandate any public access or community benefit beyond the potential for public open space within the lease scope.

Finally, the concept of override runs through the Act. Section 11 overrides s 10 of the Road Management Act 2004 and any other Act. Section 12(6) overrides the Land Act 1958, the Crown Land (Reserves) Act 1978 and regulations under it. This means the standard constraints on leasing of reserved land are displaced for this specific parcel, creating a bespoke regime that could conflict with other laws (e.g., planning and environment legislation) unless those are also overridden. The Act does not override the Planning and Environment Act 1987 or the Environment Effects Act 1978, so those remain applicable.

The Act directly affects Port Phillip City Council, which becomes the committee of management of the newly reserved land and gains the power to grant long-term leases for commercial development. The Council's statutory responsibilities under the Crown Land (Reserves) Act 1978 are now overlain with the Ministerial approval requirement in s 12(2), making the Council both a manager and a lessor but subject to executive oversight. The Council must also ensure that any lease complies with the pre-conditions in s 12(3), including the substantial building covenant and stratum provisions.

The Minister responsible for Crown land (likely the Minister for Energy, Environment and Climate Change or the Minister for Planning, depending on portfolio distribution) is affected because they must approve any lease before it can be granted. The Minister's discretion is guided by the conditions in s 12(3) but is not objectively circumscribed; the Minister must be "satisfied", which gives considerable personal discretion. This creates potential for political risk if a future Minister is not satisfied with a proposed lease.

The developer or lessee who ultimately enters into a lease of the St Kilda triangle land is clearly affected. The lessee must comply with the lease covenants, including any building covenant, and must negotiate the stratum conditions if relevant. The 99-year maximum aggregate term with 21-year extensions may constrain financing structures; projects with longer payback periods (e.g., major tourism infrastructure) may find the term insufficient. The lease is subject to the Crown Land (Reserves) Act 1978 framework except as overridden, so the lessee must also adhere to that Act's standard provisions (e.g., restrictions on assignment, use consistent with reservation).

The public users of the St Kilda Triangle are affected because the land remains reserved for public purposes, but the reservation is temporary and leases may grant exclusive possession to private operators for retail, entertainment, tourism or commercial uses. The public may lose access to parts of the triangle during construction or through leasehold enclaves. However, the Act mandates that leases may include "public open space" as a purpose, which could preserve some public amenity. The closure of Lower Esplanade as a road extinguishes public rights of way over that land, which may affect pedestrian or vehicular access along the foreshore.

Existing interest holders who had rights, easements or privileges over the closed road (s 6) or over the land whose reservations were revoked (ss 4 and 5) lose those rights. The Act expressly extinguishes all trusts, limitations, reservations, restrictions, encumbrances, estates and interests. This includes utility easements, drainage rights, or access rights that were not registered but existed by dedication or user. The catch-all extinguishment is broad and could affect adjacent landowners who relied on informal rights of way or drainage flows over the road strip.

The Registrar of Titles is required under s 13 to make recordings or amendments to the Register under the Transfer of Land Act 1958. This affects the administrative process of title correction and may create costs for the State.

The broader community might be affected through the economic impacts of development on the St Kilda foreshore. The Act does not require a public tender, community consultation, or environmental assessment as a condition of the lease. This means the decision to grant a lease is an executive process (Council and Minister), bypassing local government planning processes that would normally apply to private development. However, planning permits under the Port Phillip Planning Scheme would still be required for any buildings or works, so the Act does not entirely remove local democratic oversight.

Finally, the Crown itself is affected because the land reverts to unalienated Crown land upon revocation of reservations, then is again reserved. The Crown's interest is held for the temporary public purpose, but s 12 allows leases that can substantially alienate control to private lessees for up to 99 years. This reduces the Crown's direct control over the site.

The Act imposes specific duties and confers rights on the Port Phillip City Council, the Minister, and potential lessees, with the Registrar of Titles having a ministerial duty.

Port Phillip City Council has the right under s 12(1) to grant a lease of the St Kilda triangle land for specified purposes. This is a right, not an obligation. The Council also has the duty to seek Minister approval before granting any lease (s 12(2)). The Council must also determine any covenants, exceptions, reservations and conditions for the lease, subject to Minister approval (s 12(5)(c)). In practice, the Council must negotiate lease terms and then submit them to the Minister. The Council's duty as committee of management under the Crown Land (Reserves) Act 1978 includes general care, control and management of the reserved land; the Act does not displace those duties except as overridden by s 12. So the Council must manage the land pending lease, maintain public access as far as consistent with temporary reservation, and ensure compliance with the Crown Land (Reserves) Act 1978 and regulations.

The Minister has the duty not to approve a lease unless satisfied of the conditions in s 12(3). This is a substantive duty: the Minister must turn his or her mind to whether the lease includes a building covenant of substantial nature and value (if pre-construction), and whether stratum conditions are met if applicable. The Minister also has the power to approve or refuse the lease, and the Council cannot proceed without that written approval. The Minister may also make recommendations to the Governor in Council under s 8 to trigger the overpass reservation mechanism, though that is not a lease-related power.

A lessee has the right to receive a lease for up to 50 years initial term, with rights of extension (subject to lease terms) up to a 99-year aggregate, and a potential holdover of up to 3 months at the lessor's discretion (s 12(4) and (5)). The lessee also has the right to be protected by the covenants and conditions approved by the Minister. If the lease includes a stratum, the lessee has the right to reasonable access (s 12(3)(b)(i)), and the lease must provide for support and services rights. The lessee also has the right to expect that s 12 overrides any conflicting provisions in the Crown Land (Reserves) Act 1978, so the lessee cannot be subject to the 21-year limit or other restrictions that would apply to standard reserved land leases.

The Registrar of Titles has a duty under s 13 to make recordings or amendments to the Register under the Transfer of Land Act 1958 as necessary because of the Act. This is a mandatory duty and likely includes noting the temporary reservation on titles, recording any lease, and removing prior encumbrances that have been extinguished.

The public does not have explicit rights granted under this Act. The land remains reserved for public purposes, but the Act does not guarantee public access. The Preamble and purposes refer to further development but do not mention public benefit. The public's right to use the land as public open space is contingent on the nature of the lease; a lease for a restaurant or entertainment venue may exclude the public from the leased area, though the reservation may still require the land to be used for the public purpose (which could be interpreted as serving the public through those facilities). The Act does not provide a mechanism for public enforcement of access rights.

The Crown retains the underlying fee simple as unalienated Crown land (except where it was already Crown land) but has alienated management and leasing control to the Council, subject to Minister veto. The Crown also retains the right to amend or revoke the temporary reservation under s 10 read with the Crown Land (Reserves) Act 1978, which could ultimately terminate the leasing regime if the reservation is revoked.

There is a tension in the rights: the Council as lessor has the discretion to extend the lease under s 12(5)(a) but is not obligated to do so. The lessee has no statutory right to an extension; it depends on lease terms. The 3-month holdover is at the lessor's discretion, not the lessee's, so the lessee cannot insist on staying beyond the lease term without Council agreement.

The Act itself does not create any specific penalties or criminal offences. It operates primarily as a land status and leasing enabling statute. Enforcement of the duties and conditions it imposes would generally occur through administrative and civil mechanisms rather than by prosecution.

If the Council grants a lease without Minister approval, that lease would likely be void or voidable as ultra vires the Council's powers. Section 12(2) prohibits the grant unless the Minister has approved in writing. A lease granted in contravention of that prohibition would be of no legal effect. The lessee would have no valid leasehold interest, could be evicted, and may have claims against the Council for misrepresentation or breach of statutory duty, but those are civil remedies not penalties under the Act.

If the Minister approves a lease without being properly satisfied of the conditions in s 12(3), the approval may be susceptible to judicial review. A court could quash the approval if the Minister failed to consider mandatory conditions or acted on a misunderstanding. However, the Minister's discretion is wide: "satisfied himself or herself" is a subjective test, not an objective one, as long as the Minister considered the matters in good faith. Unreasonableness would need to be extreme.

The pre-conditions for stratum leases in s 12(3)(b) impose obligations on the Council and lessee to provide for access, support, services and non-interference. If these are not properly documented in the lease, the lease may not comply with the Act. A court could find the lease invalid if the Minister approved it without basis. However, the Act does not prescribe that non-compliant leases are void; it only sets conditions for Minister approval. If a lease is actually granted without fulfilling those conditions (even if Minister approval was given negligently), a third party such as an adjacent landowner who suffers interference may seek injunctive relief or damages under general law for nuisance, trespass or breach of covenant, but the Act does not create a statutory cause of action.

The Registrar of Titles' duty under s 13 is mandatory but no penalty is specified for failure. If the Registrar fails to make necessary recordings, a party may seek an order for specific performance or mandamus.

The Crown Land (Reserves) Act 1978 contains its own enforcement provisions, including penalties for damaging reserved land, failing to obtain consent for activities, or contravening regulations. Those penalties would apply to the St Kilda triangle land because it remains reserved under that Act, except where overridden by s 12. For example, if a lessee carries out construction without a lease or beyond lease terms, the Crown Land (Reserves) Act 1978 penalties (which can include fines) would apply. The Act does not override the general enforcement provisions of that Act, so the committee of management (Council) has the usual powers to remove trespassers, enforce regulations, and take legal action.

Lease covenants (e.g., the building covenant required by s 12(3)(a)) are enforceable as contractual terms between Council and lessee. If the lessee fails to construct the buildings, the Council can sue for breach of contract, seek specific performance, or forfeit the lease. The Act does not create a penalty for failure to build beyond that.

The Act also does not impose any competitive tendering or probity requirements. If the Council breaches its fiduciary duties as committee of management (e.g., by granting a lease at undervalue or to a related party without disclosure), that could be challenged under administrative law or by the Auditor General, but again not through a penalty in this Act.

In summary, the enforcement regime is thin. The Act relies on the ordinary mechanisms of contract, land law, judicial review, and the pre-existing enforcement provisions of the Crown Land (Reserves) Act 1978. The lack of specific penalties means that the risk of non-compliance falls on the validity of the lease and potential civil litigation, rather than on criminal sanctions.

Section 11 provides that the Act applies despite anything to the contrary in s 10 of the Road Management Act 2004 or any other Act. Section 12(6) provides that s 12 has effect despite anything to the contrary in the Land Act 1958, the Crown Land (Reserves) Act 1978 or regulations under it. These override provisions mean the Act takes precedence over certain named and unnamed legislation to the extent of any inconsistency.

The interaction with the Road Management Act 2004 is addressed directly. Section 10 of that Act deals with the creation and closing of roads. The closure of Lower Esplanade under s 6 of this Act would otherwise need to comply with the Road Management Act procedures; s 11 ensures that the closure takes effect without following those procedures. However, the closure only happens upon commencement of s 6, so the timing is controlled by the commencement provisions. The extinguishment of all rights, easements and privileges is absolute.

The Crown Land (Reserves) Act 1978 is the primary framework for reserved land management. The Act creates temporary reservations under that Act, but then displaces its leasing provisions in s 12(6). For all matters other than leasing (e.g., management duties, regulations, offences), the Crown Land (Reserves) Act 1978 continues to apply. The temporary reservation can be amended or revoked under that Act per s 10. This means the special leasing regime is not locked in permanently; if the reservation is revoked, the leases may be affected (though existing leases might be preserved by their own terms or by the Land Act 1958 provisions on transitional interests).

The Land Act 1958 is displaced only to the extent it conflicts with s 12. The Land Act contains provisions about leases of Crown land, including maximum terms and conditions. Those provisions would otherwise limit leases of reserved land to 21 years; s 12(6) overrides that to allow up to 99 years. The Land Act's provisions on forfeiture, alienation, and licences may still apply where not inconsistent.

The Transfer of Land Act 1958 is not overridden; instead, s 13 imposes a positive duty on the Registrar to amend the Register. The interaction is cooperative: the Registrar must give effect to the Act. The Act does not provide for automatic registration of leases; the lease would need to be registered as a normal Crown lease under the Transfer of Land Act, but the Registrar must accommodate the changes in land status.

The Planning and Environment Act 1987 is not mentioned in the Act, so it continues to apply. A lease for a retail, tourism, entertainment, commercial or cultural purpose would likely require a planning permit under the Port Phillip Planning Scheme. The Act does not exempt development from planning controls. This interaction means that even after a lease is approved by the Minister, the lessee must still obtain planning permits for buildings and works, and comply with the planning scheme's zone and overlay controls. The temporary reservation for public purposes would likely correspond with a Public Use Zone or Public Park and Recreation Zone, which typically allow public uses but may not automatically permit commercial development. A planning scheme amendment may be needed. The Act's silence on planning creates a risk that the commercial development intends to be permitted is not actually authorised under the planning scheme.

The Environment Effects Act 1978 and the Heritage Act 1995 (or the Aboriginal Heritage Act 2006) may also apply. The St Kilda Triangle site is near the foreshore and may have heritage or environmental significance. No exemptions are granted, so environmental assessment and heritage permits may be required. The absence of any override suggests the drafter intended these laws to operate concurrently, potentially adding delay and cost.

The Building Act 1993 and relevant regulations apply to construction. The lease under s 12 may require the lessee to obtain building permits and comply with the Building Code of Australia.

The Local Government Act 1989 applies to Port Phillip City Council generally. The Council's power to enter into leases of council land is subject to that Act's provisions on council contracts, public tendering, and reporting. However, the land is not council land; it is Crown land under the committee of management of the Council. The Local Government Act may not apply directly, but the Council's financial management and governance obligations under that Act would apply to the lease transaction as a contractual decision of the Council. If the Council fails to follow its own governance procedures, a ratepayer could seek judicial review.

The Competition and Consumer Act 2010 (Cth) and the Australian Consumer Law may apply to the lease as a commercial transaction, particularly if the lessee is a small business. Misleading conduct or unfair contract terms could be relevant.

Overall, the interaction is complex: the Act overrides specific constraints but leaves many other regulatory regimes untouched. The official purpose of enabling development can be frustrated if other approvals are not obtained.

According to the Table of Amendments in the version as at 1 July 2007, there are no amendments made to the Land (St Kilda Triangle) Act 2006 by Acts and subordinate instruments. The Act was assented to on 9 May 2006 and came into operation on 1 July 2007 by virtue of s 2(2) (default commencement). No subsequent amendment bills have been passed (or if they have, they are not reflected in this version). This means the Act is still in its original form. The version is number 001.

Since the Act is site-specific and deals with a single development project, it is likely that the Act has not required amendment because the land has been developed under the original leasing regime and no legislative changes have been needed. Alternatively, the Act may have become spent after the lease was granted, making amendments unnecessary. However, the Act remains on the statute books and the leasing powers continue to apply for the duration of any lease granted. If the initial lease term (up to 50 years) was granted, amendments could become relevant if extensions or variations are needed beyond the original scope.

The absence of amendment history also means that there is no judicial consideration embedded in amendments. No words have been changed in response to court decisions, which may indicate that the Act has not been litigated to the point of requiring clarificatory amendments, or that it has not been used yet. The Explanatory Details note "No entries at date of publication", suggesting no formal explanatory notes have been published for this version.

Practitioners should check the current Victorian legislation website to see if any amendments have been made since 2007. The version provided is Version No 001, which is the first and only version. If a new development proposal arises that does not fit within the current leasing conditions (e.g., residential use, longer term), an amendment would be required.

The Act's text and endnotes contain no references to any litigation. No cases are cited in the Act, and the Table of Amendments has no entries. The Explanatory Details are blank. This strongly suggests that as of 1 July 2007, there was no litigation history, and given the site-specific nature, there may have been no litigation since.

However, the absence of recorded litigation does not mean no disputes have arisen. There could be unreported decisions in the Victorian Civil and Administrative Tribunal (VCAT) or the Supreme Court regarding planning permits, lease conditions, or the Minister's approval. But such disputes would not typically amend the Act itself. The Act's provisions might be interpreted in a case, but the user source does not include any such cases.

Given that the Act allows the Council to grant leases with Minister approval, a potential challenge could arise if a losing tenderer or community group argues that the Minister's approval was invalid. Judicial review could be sought on grounds of failing to consider mandatory conditions, bad faith, or taking into account irrelevant considerations. No such challenge appears to have reached a reported appellate level, or at least the Act does not reference any.

The Act also does not create any statutory cause of action for persons affected by the development, reducing the likelihood of litigation directly under the Act. Most disputes would likely be under planning law or contract law, not this Act.

The lack of litigation history may also be because the lease has not yet been granted or the project has not proceeded. The Act came into operation in 2007; if no development has taken place, there may have been no trigger for litigation. Alternatively, the lease may have been granted without public controversy.

For a legal deep dive, the absence of litigation means the Act's provisions have not been tested in court. The meaning of "substantial nature and value" in s 12(3)(a) is untested. Similarly, the conditions for stratum leases in s 12(3)(b) have not been judicially interpreted. This creates uncertainty for lessees and Councils: the Minister's discretion is wide and not constrained by precedent.

It is possible that the Act was designed to avoid litigation by giving the Minister broad discretion, making decisions hard to overturn. The override of other Acts also reduces conflicts that could lead to disputes.

In summary, from the source, litigation history is nil. Practitioners should treat the Act as having no judicial gloss, and should seek legal advice on interpretation in the current context.

Several traps lie in the Act for the unwary. The first is the override clause in s 11: "This Act applies despite anything to the contrary in section 10 of the Road Management Act 2004 or any other Act." The phrase "any other Act" is extraordinarily broad. It purports to override all Victorian legislation, not just the two named. That could include planning legislation, heritage legislation, the Environment Effects Act, the Building Act, and even the Crown Land (Reserves) Act itself. While s 12(6) specifically overrides the Land Act 1958 and Crown Land (Reserves) Act for leasing, the generality of s 11 might be argued to override any Act that would otherwise impede the operation of the Act. However, this is dangerous: a court would likely read s 11 down to avoid implied repeal of important regulatory statutes without clear words. The risk is that a lessee or Council assumes no planning permit is needed because of s 11, but a court might hold that s 11 only applies to matters directly dealt with by this Act (road closure and leasing), not to all laws. Gotcha: do not assume s 11 grants a blanket exemption from planning, building or environmental laws.

The second gotcha is the Ministerial discretion under s 12(3) . The Minister must be satisfied of the conditions before approving a lease. The satisfaction is subjective. If the Minister approves without actually considering the conditions, the approval could be challenged. But even if the Minister does consider them, the broad language gives the Minister power to impose additional requirements or to refuse for any reason. There is no right of appeal or merits review. A developer could spend significant money on feasibility and negotiation only to have the Minister refuse approval without clear reasons.

Third, the building covenant requirement in s 12(3)(a) applies if the lease is granted before buildings are built. It requires a covenant requiring construction of buildings of such substantial nature and value as to justify the term. What constitutes "substantial nature and value" is undefined. A lease for a small kiosk would likely not meet the threshold. But the Minister may have a different view. If the lessee later fails to build, the Council can enforce the covenant, but the Act does not provide for any automatic forfeiture or Ministerial approval of variations. A lessee who wants to change the scope of development may need to seek variation of the lease, and the Minister may need to approve that variation (though the Act is silent on variations).

Fourth, the stratum lease conditions in s 12(3)(b) are detailed and mandatory. They require that the lessee have reasonable access, that the lease not interfere with others' rights, that support and services are provided. These conditions must be satisfied before the Minister approves. In practice, the Council and lessee will need to negotiate complex easements or rights-of-way with adjacent landowners. If those adjacent landowners are the Crown or the Council itself, it may be manageable. But if adjacent landowners are private (e.g., the Palais Theatre or the St Kilda Pier), obtaining the necessary rights could be difficult or impossible. The Act does not provide any compulsory acquisition or easement power to facilitate the stratum lease. Gotcha: the stratum lease may be infeasible without third party cooperation.

Fifth, the road closure under s 6 extinguishes all rights, easements and privileges "existing or claimed ... by any body or person as incident to any express or implied grant, or past dedication or supposed dedication or by user or operation of law or otherwise." This catch-all includes unregistered easements or prescriptive rights. Utility companies that had pipes or cables under the closed road lose those rights unless they hold a registered easement. The Act does not automatically create replacement easements. The Council must negotiate new easements. This could cause service disruptions or require expensive relocation.

Sixth, the reservation is temporary. Section 10 allows the reservation to be amended or revoked in accordance with the Crown Land (Reserves) Act 1978. If the reservation is revoked, the land reverts to unalienated Crown land. The lease granted under s 12 would then be a lease of unalienated Crown land, which might still be valid if it was granted when the land was reserved. But the Crown could decide to revoke the reservation and then refuse to renew the lease or to negotiate terms. The Act does not guarantee that the lease will survive the reservation's revocation. A lessee should seek a provision in the lease that protects against early termination if the reservation is revoked.

Seventh, the no mandatory competitive process is a gotcha for the Council. The Act does not require the Council to call for tenders, assess offers publicly, or obtain best value. A disgruntled ratepayer or competitor could challenge the lease on grounds that the Council breached its fiduciary duty to the Crown or acted for an improper purpose. The Council's decision to grant a lease to a particular developer could be seen as a disposal of public assets without adequate competition.

Eighth, the time limits: the initial term must not exceed 50 years. But s 12(5)(a) allows extensions not exceeding 21 years each, with aggregate not exceeding 99 years. If the initial lease is for 50 years with options for two 21-year extensions, the total is 92 years. But if the initial lease is for 30 years, the aggregate can still reach 99 years if multiple extensions are granted. The lessee must ensure the lease documents clearly set out extension rights; the Act does not provide an automatic right to extend. The lessor (Council) has discretion to grant extensions, which could be withheld later.

Ninth, the Act is not self-executing for development approval. Even after the lease is granted, the lessee must obtain all other permits. The Act's purpose is to enable longer leases, not to bypass other regulatory hurdles.

Finally, the commencement was on 1 July 2007 (s 2(2)). If the Act has not been proclaimed earlier, that is the default. Since this version is as at 1 July 2007, the Act was in force. But if the Act was not used within a reasonable time, the land may still be undeveloped. The leasing powers are not time-limited, so they remain available.

Compliance with the Land (St Kilda Triangle) Act 2006 involves a multi-step process for Port Phillip City Council (as committee of management) and any prospective lessee. The Act itself is relatively short; compliance is about following the statutory prerequisites before granting a lease.

Step 1: Confirm land status. The Council should ensure that the subject land is indeed the St Kilda triangle land as defined. The hatched areas in Schedule 3 (for s 7 land) and the cross-hatched areas (for s 8 land) should be clearly identified from the plan. If the s 8 mechanism was used, the Minister must have recommended and the Governor in Council must have published an order in the Government Gazette to bring that land under temporary reservation. The Council should check that the reservation is in effect.

Step 2: Committee of management duties. The Council as committee of management must manage the land in accordance with the Crown Land (Reserves) Act 1978 and any regulations under that Act, except as overridden. This includes maintaining the land, controlling access, and preventing unauthorised use. The Council should continue to exercise these duties until a lease is granted.

Step 3: Lease negotiation. Before negotiating a lease, the Council should determine the proposed development purpose. The purpose must fall within "construction or use of buildings, works, facilities or public open space for retail, tourism, entertainment, commercial or cultural purposes" (s 12(1)). If it does not, the lease cannot be granted under this Act. The Council should also decide whether the lease includes a stratum; if so, the prerequisites in s 12(3)(b) must be addressed.

Step 4: Prepare lease documentation. The lease must include a covenant for construction if granted before buildings are built (s 12(3)(a)). The covenant should specify the works to be constructed and their substantial nature and value. The Council should ensure the value is sufficient to justify the term; this may require an independent valuation. For stratum leases, the lease must provide for access, non-interference, support and services. The Council should obtain legal advice on drafting these provisions. The lease should also specify the initial term (not exceeding 50 years) and the extension options (each extension not exceeding 21 years, aggregate not exceeding 99 years). A holdover clause of up to 3 months at the lessor's discretion is optional.

Step 5: Minister approval. Before granting the lease, the Council must apply to the Minister for written approval (s 12(2)). The application should include the proposed lease, a statement explaining how each condition in s 12(3) is satisfied, and supporting evidence: building covenant, valuation, stratum access and services arrangements, and evidence that the lease will not interfere with other land rights. The Minister must be satisfied. The Council should prepare a comprehensive submission to facilitate that satisfaction.

Step 6: After approval. Once Minister approval is given, the Council can execute the lease. The lease is subject to any covenants, exceptions, reservations and conditions determined by the Council and approved by the Minister (s 12(5)(c)). After execution, the Council must arrange for the lease to be registered if appropriate (s 13 requires the Registrar of Titles to make amendments; the Council should lodge the lease for registration). The Registrar will make necessary recordings.

Step 7: Ongoing compliance. The lessee must comply with the lease covenants, including the building covenant. The Council should monitor compliance and enforce if needed. The lessee must also obtain all other approvals (planning permits, building permits, etc.) that are not overridden by this Act. The Council should ensure the lessee does not begin construction without those approvals.

Step 8: Variation or extension. If the lessee wants to vary the lease or extend the term, the Council should seek fresh Minister approval unless the lease itself provides for extensions without further approval. The Act does not explicitly require Minister approval for extensions, but because the initial term plus extensions must not exceed 99 years, and the Minister's approval was for the original lease, a prudent Council would seek Minister approval for each extension to ensure compliance.

Step 9: Record keeping. The Council must keep records of all communications with the Minister, the approval letter, and the executed lease. The Registrar's amendments should be checked.

For a prospective lessee, compliance means verifying that the Council has obtained Minister approval; ensuring the lease contains the required covenants and stratum provisions; and separately applying for all necessary permits. The lessee should also consider whether the 99-year aggregate term is sufficient for the project's finance and whether the extension options are at the Council's discretion, creating renewal risk.

Overall, compliance is front-loaded: the Act's requirements are largely pre-conditions to granting the lease. Once the lease is validly granted, compliance shifts to other laws. The Act itself imposes no ongoing reporting or audit obligations.