Residents of Melbourne's politically sensitive south-east face the possibility of high-rise development at their rail stations including Murrumbeena, under a confidential deal between the Napthine government and a consortium led by the city's private rail operator.

 

　　The deal for the proposed multibillion-dollar upgrade of the Pakenham-Cranbourne rail corridor - contained in documents leaked to The Sunday Age - includes a specific clause about development around sites identified for level crossing removals.

 

　　''Key'' issues to be negotiated with the Hong Kong-based rail operator Metro Trains Melbourne (MTM) and its partners include ''exploring value capture opportunities associated with land development at grade separation sites''.

 

　　The Sunday Age is aware that MTM views the Pakenham-Cranbourne project - including property development - as the first of a series of schemes across the Melbourne network.

 

　　The ''commitment deed'' spelling out the in-principle understanding between the government and the consortium, is one of a batch of high-level leaks to Fairfax Media about ''Project Flinders'', including cabinet-in-confidence documents.

 

　　In March the government made a surprise announcement about the upgrade, which it said would deliver a 30 per cent capacity boost along

 

　　the congested Dandenong corridor. The revamp includes removing level crossings at Murrumbeena, Koornang, Clayton and Centre roads and rebuilding Murrumbeena, Carnegie and Clayton stations.

 

　　At the time no mention was made of the potentially controversial property development component of the project. Detail, such as the precise areas to be developed, and planning issues such as height, are yet to be finalised. So too, it seems, is any agreement about the millions of dollars likely to be generated from the sale of apartments, and commercial space.

 

　　In Hong Kong, MTM's parent, MTR, has overseen skyscraper development around its celebrated rail network. Melbourne's planning politics is unlikely to allow such building height or density.

 

　　More likely is the kind of development already overseen by the government-owned rail property agency VicTrack, such as the $70 million, 10-level apartment and commercial development at Glen Waverley. Other VicTrack projects either under way or in the pipeline include stations at Jewell in Brunswick and Alphington, Hampton and Pascoe Vale.

 

　　University of Melbourne transport academic Chris Hale said development around a station like Murrumbeena should be 15 levels at least.

 

　　Dr Hale said many people want to work in the CBD, and live near rail stations, but could not afford inner-city houses. He said there was a lack of housing opportunities near stations in the middle suburbs, within a 30-minute train trip to the CBD.

 

　　He called for care in planning such high density schemes. ''Rather than concrete canyons they should be lively green zones with plenty of trees and grass and great architectural qualities. State and local government needs to become more effective in their stewardship of transit-oriented design and planning.''

 

　　On Saturday, Treasurer Michael O'Brien confirmed the government would ''explore'' development opportunities through the Pakenham-Cranbourne upgrade. But he stressed the government would drive a hard bargain in any such deals.

 

　　''It is the Victorian government, not third parties, that will determine whether and how any value capture opportunities are pursued.

 

　　''Any suggestion that the Coalition government has sold a right to develop land around level crossings as part of the Cranbourne-Pakenham rail project is barking up the wrong tree,'' he said.

 

　　Project Flinders is Victoria's first ''unsolicited proposal'', a new and controversial policy that allows the private sector to propose new infrastructure, even if the projects identified are not government priorities. It is Australia's biggest rail public-private partnership.

 

　　While the government spruiked the scheme as a $2 billion to $2.5 billion (in today's dollars) project, The Saturday Age reported yesterday that Victorians would have to pay up to $5.2 billion, or almost $1 million a day in annual services payments to the consortium until 2034.

 

　　The Saturday Age also revealed the project had been expedited to ensure contracts were signed before the November state election and that a key ''milestone'' was ''contractual close'' by September 29, two months before the election

 

　　Project Flinders also includes buying 25 ''next generation'' high-capacity trains, high-speed signalling and a new train-maintenance depot on green wedge land at Pakenham East.

 

　　Read more: http://www.theage.com.au/victoria/highrise-plan-for-railway-hubs-20140503-37p6f.html#ixzz30jkNH7aS