Dorset Council is seeking to sell a prominent north east property, which was seized by the Australian Federal Police in 2019, in a bid to recoup $43,000 in unpaid rates.
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The AFP seized Icena Estate in 2019 because it was allegedly purchased with the proceeds of crime.
Dorset council mayor Greg Howard said the council was owed rates worth $43,597.10 relating to land at 751 Musselroe Road, which is also restrained by AFP and owned by MRD.
AFP investigation won't override sale of property
The property is subject to a restraining order imposed by the AFP that restricts third parties from dealing with the land without prior approval.
However, Cr Howard said the council had sought legal advice regarding its ability to sell the property pursuant to Section 137 whilst it is subject to the restraining order.
"Our legal advice says the debt of rates that is owed to us takes precedence over all other debts owed, and anything other interventions that are occurring, including an AFP investigation," he said.
In its latest agenda, Dorset council said: "Section 119 of the ACT provides that rates are enforceable in priority to any other mortgage, charge, lien or encumbrance on the land including restraining orders.
"Officers notified the AFP of the intent to sell the land for unpaid rates whilst fulfilling the notification requirements per section 137 (4) of the Act.
"Officers have obtained a valuation for the property and it is anticipated that the property would sell for $1 million to $1.5 million."
A spokesperson from the AFP told The Examiner: "The AFP always works with local government authorities to ensure the operation of the Proceeds of Crime Act 2002 has the least impact on people and entities who are not the subject of its investigations and proceedings under Commonwealth law."
Cr Howard said a tenant that has leased the land for cattle grazing advised he was happy to vacate upon receipt of an eviction notice or similar.
Land originally earmarked for $185 million development
Documents from the Land Information Service of Tasmania reveal that two Icena titles at 1251 Musselroe Rd were recently sold for $5 million by Melbourne Resort Development to a Melbourne firm DCF Musselroe Bay Pty Ltd.
The sale was finalised on July 21, 2022.
LIST documents relating to 751 Musselroe Rd show that DCF Musselroe Bay Pty Ltd took up a nine-year lease from June 24, 2022.
But the land is still owned by Melbourne Resort Development.
The $5 million sale was part of an arrangement overseen by a judge of the County Court of Victoria which allowed that the proceeds be "paid to the Official Trustee to be held as restrained funds until the determination of [County Court] proceedings or further order."
A directions hearing about the confiscation of Icena is due to be heard on November 22 in the County Court of Victoria.
The Icena property was the subject of a proposal for a $185 million development in 2013, which included a golf course and resort, but never went ahead.
A spokesman for DCF told the Examiner this week: "DCF Property Group's plan on the property remains the same.
"The DA [development application] was granted for the overall development to the Icena property and remains active."
DCF is owned by Chinese-born businessman Zhiwei Huang, 35, of Melbourne.
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Nick Clark
I am the Supreme and Magistrates Court reporter for the Examiner for the past 18 months. My journalism career has clicked over 30 years and encompasses four different spells at Tasmanian newspapers.
I am the Supreme and Magistrates Court reporter for the Examiner for the past 18 months. My journalism career has clicked over 30 years and encompasses four different spells at Tasmanian newspapers.
