Short-Stay Dispute Dogs Watergate Apartments at Docklands

Short-stay dispute dogs Watergate Apartments at Docklands

ByVirginia Millen

10:26:AM 03/03/2014

Residents, Melbourne City Council and the state member for Melbourne are calling for clearer legislation to define exactly what a building of residence should be used for.

For years a battle has been fought over whether serviced apartments should be allowed at Watergate Apartments at Docklands. The building is ranked as Class2 residential, however the council has argued that short-stay falls within Class 3.

Residents claim the rowdy behaviour of short-stay guests in serviced apartments at the building has damaged parts of the property, frightened residents and caused some apartment owners to move out.

Residents are now awaiting a decision of the Building Appeals Board (BAB), which will hear the Watergate Apartments short-stay case again on April 8.

In 2011, the City of Melbourne presented building orders to Docklands Executive Apartments (DEA), on the basis that Watergate did not comply with the occupancy permits originally issued.

BAB ruled that running serviced apartments in Watergate contravened the Building Code of Australia.

After two failed Supreme Court appeals by the owner and the council, the case was returned by the court to the appeals board.

State member for Melbourne Jennifer Kanis said the issue needed to be resolved.

She said if the dispute could not be settled under current regulations, then legislative change would be needed.

Melbourne City councillor Kevin Louey agreed, saying clarification on how buildings such as Watergate were classified under the Building Code was needed.

“The definition of a Class 3 building needs to be spelled out clearly and minimum stay needs to be spelled out clearly so we can move forward,” he said.

Lawyer Michael Teys of Teys Lawyers, which represented the Watergate Owners’ Corporation, said the issue of serviced apartments operating out of residential buildings was widespread and would likely worsen thanks to an oversupply of residential apartments expected over the next year.

DEA owner Paul Salter said operations such as his brought much-needed tourism to locations like Docklands. He said short-stay accommodation could cater for the overflow of tourists in the city during major events when facilities were at capacity.

President of the Owners Corporation Network of Victoria and Watergate resident Roger Gardner said serviced apartments that operated like quasi-hotels were causing significant problems for residents.

Planning Minister Matthew Guy, who last year promised to empower owners’ corporations to manage short-stay operators in the buildings they ran, said the issue lay with the Consumer Affairs Minister, and he would continue discussions with her.

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