FALLS CREEK STAKEHOLDER CONSULTATIVE COMMITTEE �– ALPINE LEASE REVIEW SUMMARY�9 Nov 25

• Key Points
• Matrix
• Renewal
• New Lease
• DSG

FALLS CREEK STAKEHOLDER CONSULTATIVE COMMITTEE �– ALPINE LEASE REVIEW SUMMARY�9 Nov 25

• The ARLP contains five principles to inform ARV in its role of managing leasing within alpine resorts:
• Principle 1 - Provide benefits to the public through leasing
• Principle 2 - Consistency and transparency in leasing
• Principle 3 - First right to negotiate
• Principle 4 - Environmentally sustainable lease management
• Principle 5 - Appropriate lease term and conditions

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FALLS CREEK STAKEHOLDER CONSULTATIVE COMMITTEE �– ALPINE LEASE REVIEW SUMMARY�9 Nov 25

• Site Rental
• Currently 3.5% of Valuer General’s assessment. Assumed to remain at this level under new arrangements
• Consistency and transparency
• A competitive selection process will apply for any lease over greenfield or unleased Crown land within alpine resorts unless it is determined that the public benefit of direct allocation outweighs the benefits that may be produced by using a competitive process
• Lessee / applicant is liable for ALL Survey, Legal and Site rental determination costs and ARV Published Fees.

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FALLS CREEK STAKEHOLDER CONSULTATIVE COMMITTEE �– ALPINE LEASE REVIEW SUMMARY�9 Nov 25

• First right to Negotiate
• Existing tenants will be offered the first right to negotiate a new lease.
• Must be in good standing with ARV (no outstanding fees etc…)
• Meet statutory building standards
• Consistent with Alpine Resorts Strategic Plan

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• Applicant may seek new term at any time.

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FALLS CREEK STAKEHOLDER CONSULTATIVE COMMITTEE �– ALPINE LEASE REVIEW SUMMARY�9 Nov 25

• Environmentally sustainable lease management
• Depending upon the type and term of the lease being sought, proposals to lease Crown land within alpine resorts will need to demonstrate the application of these matters, including by demonstrating some or all of the following:
• buildings having an appropriate level of energy efficiency
• an appropriate capital investment
• preparation of a landscape management plan for the site
• preparation of a business case or statement of operational intent for the use of the site

FALLS CREEK STAKEHOLDER CONSULTATIVE COMMITTEE �– ALPINE LEASE REVIEW SUMMARY�9 Nov 25

• Appropriate Terms and Conditions
• Detailed business cases or statements of operational intent shall be required to support and inform applications for certain categories of alpine leases.
• All responsibilities and liabilities for improvements (including structural) will lie with the tenant and ARV will charge rent only on the land value.
• Several Lease term categories
• 15 years
• 21 years
• 31 years
• 49 years
• 50+ years

FALLS CREEK STAKEHOLDER CONSULTATIVE COMMITTEE �– ALPINE LEASE REVIEW SUMMARY�9 Nov 25

• For sites with existing buildings:
• Applications for a minimum 15 year standard alpine lease of a site must, as a minimum, satisfy the following:
• the proposed use of the site is consistent with the Alpine Resorts Strategic Plan
• the proposed use of the site is consistent with the permitted use as per the Alpine Resorts Planning Scheme
• all buildings within the lease area meet statutory building requirements
• a suitable Landscape Management Plan is submitted
• a Business Case or Statement of Operational Intent is submitted if required
• the tenant has a satisfactory rent and service charges payment history (existing tenants only)
• the tenant has not consistently committed breaches of the existing lease of which it has been given notice (existing tenants only

FALLS CREEK STAKEHOLDER CONSULTATIVE COMMITTEE �– ALPINE LEASE REVIEW SUMMARY�9 Nov 25

• 21 Years
• All of the above for a 15 year term +
• Satisfies minimum lease requirements
• At least 50% improvement in energy efficiency rating (unless buildings already meet National Construction Code (NCC) requirements) ^{- specifically S 13 of the NCC}

FALLS CREEK STAKEHOLDER CONSULTATIVE COMMITTEE �– ALPINE LEASE REVIEW SUMMARY�9 Nov 25

• 31 Years
• All of the above for a 15 year term +
• Satisfies minimum lease requirements
• At least 75% improvement in energy efficiency rating (unless buildings already meet National Construction Code (NCC) requirements) ^{- specifically S 13 of the NCC}
• ^{At least $200,000 as Refurbishment}

FALLS CREEK STAKEHOLDER CONSULTATIVE COMMITTEE �– ALPINE LEASE REVIEW SUMMARY�9 Nov 25

• 49 Years
• All of the above for a 15 year term +
• Satisfies minimum lease requirements
• At least 100% improvement in energy efficiency rating (unless buildings already meet National Construction Code (NCC) requirements) ^{- specifically S 13 of the NCC}
• ^{At least $5,000,000 as Refurbishment}

FALLS CREEK STAKEHOLDER CONSULTATIVE COMMITTEE �– ALPINE LEASE REVIEW SUMMARY�9 Nov 25

• 50 years +
• All of the above for a 15 year term +
• Satisfies minimum lease requirements
• The purpose for which the lease is to be granted, and the proposed use, development, improvements or works, are of an exceptional nature and will make a major contribution to the resort consistent with the Object of the Alpine Resorts (Management) Act.

FALLS CREEK STAKEHOLDER CONSULTATIVE COMMITTEE �– ALPINE LEASE REVIEW SUMMARY�9 Nov 25

• Greenfield / New Lease site proposal
• Broadly same minimum requirements as before
• 21 years - $2.0mill investment
• 31 years - $5.0mill investment
• 49 years - $30.0 mill investment
• 50 years + - not stated specifically.

FALLS CREEK STAKEHOLDER CONSULTATIVE COMMITTEE �– ALPINE LEASE REVIEW SUMMARY�9 Nov 25

• Design and Siting Guidelines
• FCAA has initiated engagement with ARV as to the future of Falls Creek DSG.
• A meeting between FCAA and Annie Volkering of ARV occurred last week.
• Current arrangements are not planned to change at the moment.
• Further engagement is planned once the new Policies are on Engage Vic and beyond.

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