Residents of the Martha Cove marina development on Victoria’s Mornington Peninsula are fighting a $541,000 charge from the Department of Transport and Planning to upgrade lights in a public underpass, saying a historic agreement unfairly burdens them with the cost of public infrastructure.
The dispute centres on an 80-metre underpass beneath Marina Drive, built in 2005 to facilitate the lowering of the road beneath the entrance channel to the Martha Cove Marina. The department wants to replace current sodium vapour and fluorescent lights with LEDs, a project due to begin this month. Under a section 173 agreement, Martha Cove residents are required to fund maintenance and replacements in the area, and the department can access the residents’ sinking fund.
Neil Pope, chairman of the Martha Cove Owners Corporation and a former Victorian Labor government minister, said residents understood they faced additional costs for their waterfront lifestyle. Last year they spent a combined $450,000 on public underpass lifts and replacing a 2.3-kilometre timber boardwalk. But Pope said the $541,000 lighting bill was outrageous and said the department had failed to adequately explain how it reached the figure or provide design documents.
Pope served as the state MP for Monbulk from 1982 to 1992 and was a minister under the Cain and Kirner governments. He said the department had failed to adequately explain how it reached the $541,000 figure or provide residents with design documents. “We accept that we have to look after the marina,” Pope said. “But it just makes it darn hard when we have to budget for stuff we don’t believe we should have to pay the full amount for.”
A spokesperson for the Department of Transport and Planning said it was working closely with the Martha Cove Owners Corporation to ensure the underpass was maintained in accordance with safety standards. “As a privately funded development, the owners corporation is responsible for the ongoing operation and maintenance of the Martha Cove underpass,” the spokesperson said. The department said the light replacement program addressed performance and reliability issues and complied with its procurement policy, and it had provided briefings and shared information with residents since the project development phase began two years ago.
Liberal MP Anthony Marsh, whose seat of Nepean covers the marina, lashed the department’s handling of the project in a September speech to the Victorian parliament. “That is a significant cost on local households, especially during a cost-of-living crisis,” Marsh said. He said the owners corporation supported replacing ageing lights but did not accept the “extraordinary bill” without proper scrutiny.
The Martha Cove development in Safety Beach is home to about 3000 people in more than 1800 dwellings, with about 830 marina berths. Pope expressed concern about the potentially enormous future costs of maintaining the underpass, noting residents couldn’t stop the department from accessing the sinking fund.
Analysis
Why This Matters
- The dispute highlights how historic development agreements can shift public infrastructure costs onto private residents, potentially setting a precedent for other similar developments.
- For Martha Cove’s 3000 residents, the $541,000 bill comes during a cost-of-living crisis, raising questions about fairness when public works serve the broader community.
- The case may prompt renewed scrutiny of section 173 agreements, which lock property owners into long-term maintenance obligations for public assets.
Background
Martha Cove is a waterfront residential and marina development in Safety Beach on the Mornington Peninsula. Construction began in 2004 and was built progressively. The development includes apartments, luxury villas, boardwalks, lifts, and the underpass. Residents fund the maintenance of the area via a sinking fund, even though the public has right of access. The underpass was built in 2005 to lower Marina Drive beneath the entrance channel to the marina.
Key Perspectives
Neil Pope (Martha Cove Owners Corporation chairman): Says the cost is “outrageous” and the department has not adequately explained how it reached the figure or provided design documents. He says residents cannot stop the department from accessing the sinking fund.
Department of Transport and Planning spokesperson: Says the owners corporation is responsible for the underpass’s operation and maintenance because it is a privately funded development. The department says it has provided briefings and shared information since the project development phase began two years ago.
Anthony Marsh (Liberal MP for Nepean): Called the cost “a significant cost on local households, especially during a cost-of-living crisis” and said residents should not be left carrying an “unreasonable and avoidable financial burden.”
What to Watch
- Whether the Department of Transport and Planning provides the design documents and cost breakdown residents are seeking.
- Whether the Liberal MP’s parliamentary push leads to any legislative or policy changes regarding section 173 agreements.
- The possibility of escalation if the department proceeds with the lighting upgrade and draws the $541,000 from the residents’ sinking fund.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedResidents face a $541,000 bill for lighting in a public underpass.The Age - Latest News: “residents are in a dispute with the Victorian Department of Transport and Planning over its plans to charge them a combined $541,000 to update lights in a public underpass used by motorists daily.”
- SupportedThe owners corporation chairman called the lighting cost outrageous amid a dispute with the department.The Age - Latest News: “But Pope said it was outrageous the Department of Transport and Planning wanted residents to fund the upgrade of 50 lights in an 80-metre stretch of underpass.”
- SupportedPope said, “We accept that we have to look after the marina,” and that budgeting for costs they did not believe they should fully pay made it “darn hard”.The Age - Latest News: ““We accept that we have to look after the marina,” Pope said. “But it just makes it darn hard when we have to budget for stuff we don’t believe we should have to pay the full amount for.””
- SupportedThe Department of Transport and Planning spokesperson said the owners corporation was responsible for the underpass’s ongoing operation and maintenance.The Age - Latest News: ““As a privately funded development, the owners corporation is responsible for the ongoing operation and maintenance of the Martha Cove underpass,” the spokesperson said.”
- SupportedMarsh said the cost was significant for local households, especially during a cost-of-living crisis.The Age - Latest News: ““That is a significant cost on local households, especially during a cost-of-living crisis,” Marsh said in a speech to Victorian parliament in September.”
- SupportedThe dispute concerns an agreement that residents say unfairly leaves them paying for public infrastructure.The Age - Latest News: “Martha Cove Owners Corporation chairman Neil Pope, a former Victorian Labor government minister, said a dated agreement between the developer of Martha Cove, Mornington Peninsula Shire and the department had resulted in residents being saddled with the cost of maintaining public infrastructure.”
- SupportedThe underpass is 80 metres long and was built in 2005 to allow Marina Drive to pass beneath the marina entrance channel.The Age - Latest News: “The department said the underpass was built in 2005 to facilitate the lowering of Marina Drive beneath the entrance channel to Martha Cove Marina.”
- SupportedResidents spent a combined $450,000 last year on underpass lifts and replacing a 2.3-kilometre timber boardwalk.The Age - Latest News: “Last year, residents spent a combined $450,000 on underpass lifts, which are open to the public, as well as replacing a 2.3-kilometre timber boardwalk with fibreglass resin polymer after it became slippery and dangerous.”
- SupportedUnder a section 173 agreement, residents must fund maintenance and replacements, and the department can access the sinking fund.The Age - Latest News: “Under a section 173 agreement, which sets out long-term obligations for property owners, residents at Martha Cove are required to fund maintenance and replacements in the area. The light replacement project is due to begin this month. Residents are required to contribute to a sinking fund, which covers infrastructure and maintenance in the marina. With the department able to access that fund, Pope said residents could not stop the department from extracting the money.”
- SupportedThe lighting project is due to begin this month, and the department wants to replace sodium vapour and fluorescent lights with LEDs.The Age - Latest News: “The department wants to upgrade the current sodium vapour and fluorescent lights with LED. [...] The light replacement project is due to begin this month.”
- SupportedThe department said the project addresses performance and reliability issues, complies with procurement policy, and that it had shared information with residents since the project development phase began two years ago.The Age - Latest News: “The department said the light replacement program addressed performance and reliability issues and complied with the department’s procurement policy. The department also said it had providing briefings and shared information with residents since the project development phase began two years ago.”
- SupportedMartha Cove has about 3,000 residents, more than 1,800 dwellings and about 830 marina berths.The Age - Latest News: “The development in Safety Beach on the Mornington Peninsula is home to about 3000 people who live in properties ranging from apartments to luxury villas. [...] The area now has more than 1800 dwellings and about 830 marina berths for boats.”