Council threatens land seizure

•  Part of the planning application for the $185 million Musselroe Bay Resort submitted to Council in 2013.

By Taylor Clyne
August 24, 2022

Council is threatening to seize two properties equating to more than $40,000 worth of unpaid rates, the most notable being 751 Musselroe Road, Musselroe Bay which is currently under investigation with the Australian Federal Police (AFP). 

The property is owned by a company named Melbourne Resort Development Pty Ltd and the title in question is 293.1 hectares in size equating to an estimated land value of $2.5 million.

Rates have not been paid on the property since October 1, 2018 and its understood an active restraining order is still listed on the title with all transactions handled by the AFP.

“This particular portion of land is under an active investigation relating to foreign investment guidelines and alleged laundering,” Mayor Greg Howard said.

A development application (DA) for a $185 million eco-tourism resort was approved in 2013 including the construction of an international standard golf course, a five-star resort, a visitor and interpretation centre, airstrip and terminal for a 40-seater plane was the centre of
the investigation.   

Construction on the Musselroe Bay Resort was set to start in 2014 with the DA being extended multiple times since then and all but the commencement of a road and ancillary work occurring. 

The AFP alleges two Chinese nationals moved around $23 million of fraudulently obtained funds from China and used them to purchase this property and others in Melbourne. 

Mayor Howard said he could not speak on the investigation however given the rates have been outstanding for more than three years Council were intitled to go down this path.

“All attempts to recover the money have failed and we have therefore invoked the Local Government Act section 137 where they have 90 days to pay up or we will sell the property by way of public auction,” he said.

“If this occurs, we will deduct the outstanding rates, the costs of advertising and associated costs by the sale and then hold the remaining money in trust until someone lodges a legitimate claim for the money.”

The other property advertised was the old Ampol Service Station at 29 King Street Scottsdale which is owned by Terence Gregory Walder.

Rates in arrears equate to more than $7,400 and were last paid in
February 2018.