Property Developers have carte blance when they lease this Commonwealth land.
Avalon, Essendon, Moorabbin are all been seen as future housing developments, not long term airports. Ask Fox what his long term plans are.
To suggest that lessors are forced to develop the land within airports, or else they would lose money, is fantasy. Who enters into a 99 year lease knowing they will lose money from day one? The land that Costco sits on at Moorabbin is valued at 40 million.
How many C172s doing circuits does it take to raise 40 mil? My point is that land development is the prime reason for leasing this land, not support for the aviation industry.
Airports are prime brownfield developments. Water, sewer, gas, power, drainage, flat land all sitting there, when they eventually buy this land, they pay only greenfield rates, double your money overnight. Laverton is a prime example.
When Tooraddin is announced, Moorabbin will close. The money from this sale should be used to relocate Moorabbin to Bangholme where there is ample land available. Fox will hold onto Avalon lease for the initial 50 years then buy the land not opt for the additional 49 year lease. Most of us will be dead by then so my theory is safe.
Regional Victoria is no better off really.