Builder wins parking waiver Author: Mark Phillips Date: 21/06/2006 Publication: The Financial Review
An inner-Melbourne council has waived most of a car-parking requirement for a new apartment block in a bold departure from normal practice that will shave 10 per cent off the development cost.
Port Phillip Council has approved a 35-apartment development in Irwell Street, St Kilda, with only nine parking spaces, a shortfall of more than 70 per cent from the normal requirement.
The decision, which could still be challenged in the Victorian Civil and Administrative Tribunal, has been applauded by the Planning Institute of Australia for leading the way in encouraging affordable high-density housing in activity centres with established public transport networks.
The apartments are part of a mixed retail-residential development proposed for the site in the Acland Street precinct of St Kilda.
A total shortfall of 38 car-parking spaces has been approved in the development, which will involve the provision of just 15 spaces for six shops and 35 apartments.
There is no provision for on-site visitor parking, and the new residents will not be eligible for residential parking permits.
Under the Rescode formula, the normal requirement would have been for 11 spaces for the shops and 42 for the residents.
The council approved the development despite objections from nearby residents that parking in the area was already under strain.
But Port Phillip Mayor Janet Bolitho said she was confident the project would encourage residents into the area who did not own cars.
There was abundant off-street shopping-centre parking and public transport in the area, and the council had to be proactive to discourage car use if Port Phillip's streets were to avoid being choked with traffic.
Also, waiving the parking requirement would reduce building costs and allow affordable housing to be provided in activity centres.
"We're in a situation where we're just never going to be able to supply on-street car spaces for every single person who wants one," she said.
"There are times when you have to say no. In this place at this time we're going to make a bold decision to support our sustainable transport options rather than car-based options."
Developer Leon Mrocki said the parking waiver would save about 10 per cent of the cost of the project.
Underground parking would have cost about $35,000 per space, or about $1.2 million extra, which would have made it marginal whether to proceed with the development.
Not only will the project be cheaper, but Mr Mrocki said it would be possible to keep rents in the building to an average of $220 a week.
About four years ago, Mr Mrocki and his brother Harry built 15 studio apartments in Barkly Street, St Kilda, which also had no on-site parking requirement.
"Anything that brings costs down is a bonus because at the end of the day we have got to get our product to market," he said.
"If you can reduce construction [costs] and make apartments more affordable, developers would build more because they can sell more and people would buy more because they're slightly cheaper. Ten per cent is a hell of a difference."
Jason Black, vice-president of the Victorian division of the Planning Institute of Australia, said the City of Port Phillip's approach fitted well with the Melbourne 2030 strategy to encourage housing in activity centres.
Other developers would be heartened by the council taking the lead to waive the car-parking requirement. "As long as it is based on sound principles, we would strongly encourage this type of thing because we would see this as a way of progressing some of those broader metropolitan and regional strategies." he said.