Update on Melbourne Innovation Centre

Published on 13 April 2023

We have some FAQs with the latest details on the circumstance leading up to Council’s direct management of 2 Wingrove Street, Alphington.

Following an EOI processes, a range of licences have been offered to tenants of the 3.6-hectare site at 2 Wingrove Street, Alphington, known as the Melbourne Innovation Centre. Extended licences were offered on the basis of important operational, zoning and financial considerations. All applications were evaluated against strict criteria based on alignment to Council’s Strategic Objectives.

FAQs

Listed below is more detail on the circumstance leading up to Council’s direct management of 2 Wingrove Street, Alphington.

What is the permitted use under the current zoning of this site?

The land known as 2 Wingrove Street, Alphington is zoned Public Use Zone – 6 – Council Purposes. As such, permitted uses are those that are conducted on or on behalf of Council.

Why was the lease to Melbourne Innovation Centre not renewed or extended?

The council owned site at 2 Wingrove Street, Alphington has been leased to Darebin Enterprise Centre Ltd (DECL), trading as Melbourne Innovation Centre (MIC) since 1998. This lease was due to expire on 18 May 2023.
On 17 January 2023, the CEO of DECL formally notified the Council that it would not seek to renew its lease for a further term and would be vacating the site at lease expiry on 18 May 2023. The letter advised that this decision was made due to a lack of capital funding from the State and Federal Governments to improve infrastructure at the site and a need to provide sufficient notice to its Licensees.

Why did Council proceed to an Expression of Interest for an invitation to licence parts of the site

Council proceeded to a public Expression of Interest for the receipt of applications to licence parts of the site to ensure that the process was equitable to all and that no party was given preferential treatment.

Why couldn’t Council continue with the current licenses after the expiry of the MIC lease?

The current licenses were an arrangement between MIC and each Licensee. Council had no direct or legal relationship with the Licensees. MIC provided 90 days’ notice to all Licensees, effectively ending their arrangements from 17 April 2023 before the end of the MIC lease with Council on 17 May 2023. Prior to the commencement of the EOI process, Council were advised that it would not be possible to extend the Licenses until the lease end date, acknowledging that MIC have ‘make good’ obligations under the terms of their Lease.
Through the Expression of Interest process, Council was not able to provide licenses to all MIC licensees primarily on the basis of non-compliance to the permitted use under zoning; building compliance and structural issues in a number of the buildings and the fact that there was not enough space to house all businesses given that buildings 2, 3A-D and 4B were deemed as being not available for occupation.

Why is Council offering interim licenses to 30 April 2024 to a number of the existing MIC licenses?

On 17 January 2023, the CEO of DECL formally gave its Licensees with 90 days’ notice to terminate their respective Licences. Through the EOI process, a number of business expressed their interest in the continued use of the property at 2 Wingrove St, Alphington. The evaluation of submissions considered, among other requirements, the availability of suitable buildings, alignment to Council’s strategic objectives and compliance with the permitted use under zoning,
The evaluation of submissions resulted in a number of businesses not being offered an arrangement with Council through a 5-year License. In acknowledging the difficulty of some of these businesses to relocate their operations within a 90-day period, Council introduced interim licences until 30 April 2024 to facilitate a more orderly exit from the site. These licenses have been granted according to a strict criteria and on the basis of supporting local jobs and businesses.

Why did Council not continue to licence to incubator businesses?

Whilst local jobs, employment opportunities and business activity are critical to Council’s goals, the management of the fostering of incubator businesses is not core to Council’s operations and requires expertise in this field. Whilst the Melbourne Innovation Centre is relocating from this site, it will still active in Darebin and maintaining its relationships with major business groups and education facilities.
Council continues to support business incubation within Darebin through its relationship with DECL. This a continuing relationship that is separate to the lease arrangement ending for 2 Wingrove St, Alphington.

Is Council going to Community Engagement on the Licenses?

The Local Government Act does not require Councils to undertake community engagement for licence agreements.

What is the future plan of the site?

Following receipt of the notice from DECL (trading as MIC) on 17 January 2023, the Council, at its Meeting of 25 January 2023, endorsed the CEO to commence works on the development of a long-term Master Plan of the site. There will be engagement with the community through the development of this Master Plan.

Why did Council close down buildings 2 and 3A-D to undertake asbestos remediation works?

A routine risk review of the site carried out by two independent environmental hygienists identified that the state of asbestos that had been previously reported in buildings 2 and 3A-D had deteriorated with dust, bundles of fibres and pieces of asbestos containing material identified throughout the buildings. Both Environmental Hygienist separately advised Council that there was an human health risk and that the risk be mitigated by restricting access and undertaking cleaning of buildings 2 and 3A-D and the contents therein. The Council acting diligently in the performance of its functions considered this information and other matters, and engaged suitably qualified contractors to commence cleaning those buildings on 6 December 2022 with the knowledge and consent of DECL.

Why were MIC’s licensees allowed back into buildings 2 and 3A-D after the VCAT Hearing between DECL and Darebin City Council?

On 22 December, DECL sought an interlocutory injunction at VCAT to compel the Council to return Buildings 2 and 3 A-D to DECL and restrain the Council from re-entering these premises.
The VCAT finding was in favour of DECL with a stay of action until 5 January 2023 pending any action by the EPA or Worksafe to declare the premises unfit. This finding was delivered on the basis that there was nothing in the Lease that allowed Council as Landlord to lock out its tenant. The finding did not deliver any ruling on the asbestos issues as VCAT had limited jurisdiction to consider the OH&S Act