The Chalet was previously held under lease to Mt Buffalo Chalet Pty Ltd until 2015; however, an agreement was reached on 25 May 2009 to hand back the Chalet lease to Parks Victoria. Parks Victoria has now commenced the search for a new operator with the vision and commitment required to be able to operate this unique site. This is a significant opportunity to redevelop the Chalet into a world-class tourism accommodation facility. In addition to the Chalet, both Cresta Valley and Dingo Dell lease sites will be made available to interested parties through a public tender process, with an expectation that year-round sustainable recreation uses will be proposed for the Cresta lease site. Parks Victoria does not consider that a viable business could operate relying solely on snow cover at Cresta Valley and this view is based on the predictions in recent CSIRO reports on the impacts of climate change on Victoria 's Alpine Resorts. Consequently, Parks Victoria will not support proposals that depend only on downhill skiing activity and accommodation at Cresta Valley lease site. Government wants to see a sustainable and viable commercial operation that supports the local economy; maintains the Chalet and supports the long-term growth of tourism in the region.

The Victorian Government appreciates the importance of the Mt Buffalo Chalet and is working hard to ensure both a sustainable and viable outcome for the Chalet. To ensure this, Government has committed to legislative change to provide for a longer-term lease, with in-principle support for a lease term of up to 50 years. The Government has also committed to providing the Cresta insurance money ($6.4m) towards essential services infrastructure for the Chalet. A small portion of this money is currently being spent to prepare the Chalet for re-lease to the market.

The Expression of Interest for the Chalet lease, redevelopment and operation commenced on Friday, 31 July 2009, with submissions closing on Friday, 28 August 2009. Interested parties can contact Aaron Desange (02) 9220 8794 or Peter Harper (02) 9220 8548 at Jones Lang LaSalle Hotels for a copy of the Information Memorandum.

The selected Bidder(s) may then be invited to progress to a detailed Request for Tender with submissions closing in late November. At the conclusion of this tender process, Government will then be in a position to select a preferred investor.

The supporting documentation at the first stage of the tender process provides prospective investors with the following:

• An overview of the opportunity;
• General guidelines to the desired use and development;
• Heritage guidelines;
• The key outcomes expected from a redevelopment; and
• The condition of the Chalet building.

Community Objectives

A community reference group was provided with a briefing in Bright on 14 July 2009 and were given the opportunity to review and revise the community redevelopment principles and objectives for Mt Buffalo National Park Leased facilities. A key message from the community at this meeting was their desire to see a sustainable future for the mountain and their emphasis on the year-round activation of the mountain.

Details of the community objectives.

Activities on the Mountain

Parks Victoria continues to support snow play and cross country skiing within Mt Buffalo National Park and this winter is again opening the visitor centre and café at Dingo Dell and maintaining 12 km of groomed cross country ski-trails and groomed toboggan runs for families.

Chalet Building Condition

Parks Victoria has recently commissioned a Building Condition Report for the Chalet. This report indicates that in general the building is in reasonable condition for its age, although there are some compliance issues in relation to smoke alarms, fire escapes and disabled access. All of these issues are rectifiable, however, there may be significant cost involved due to the age, heritage nature and complexity of the buildings.

Heritage Guidelines

The Mt Buffalo Chalet is of architectural, historical and social significance to the State of Victoria and is the earliest known survivor of its kind in the country. Its most significant period of development is 1910-1940 and fabric from this period is particularly important. The Chalet is listed on the Victorian Heritage Register No.H0901, and further information is available from the Heritage Victoria website: www.heritage.vic.gov.au.
Mount Buffalo National Park, including the Chalet, is also included as a place of significance on the National Heritage List.

There is a need to restore and upgrade various parts of the Chalet in order to comply with current regulations and to provide better visitor amenities. This, in addition to the removal of inappropriate layers of development from the period after 1940 is supported by Heritage Victoria. However, heritage permits will be required to undertake redevelopment and refurbishment work at the Chalet.