Loading The saga is widely considered to be Victoria’s longest-running planning dispute. It began in the 1950s, with the sale of 11,800 blocks of seaside land to mostly newly arrived migrants who were targeted with promises of a new Gold Coast, complete with state-of-the-art infrastructure. The infrastructure was never built, and some time later the land along the coast south of the town of Sale was deemed inappropriate for development.

The Ombudsman’s office launched the investigation into the blocks in Wellington Shire after revelations in The Age last year that the council continued to charge people rates on land that could never be developed. The Ombudsman’s report into the Wellington Shire Council's handling of the subdivisions, tabled in State Parliament on Wednesday, said that the office had received a total of 67 complaints about the issue. Ms Glass said "people bought land in good faith but were in fact sold a pup". "Much of the land cannot be developed, at least in its present form. Some of it is beach dunes. Some of it is flood-prone," Ms Glass said. "Successive environmental studies confirm what should have been seen at the outset, that it should never have been sold off in the first place." The allure of Paradise Beach is clear. Credit:Justin McManus

The land in question covers a 25km stretch of coastline and takes in Golden Beach and Glomar Beach between Bass Strait and Lake Reeve, from The Honeysuckles in the south-west to Paradise Beach in the north-east. Loading Many of the owners have sat on the in-effect useless blocks for decades, paying rates in the hope that they may one day recoup their losses. Ms Glass said while it was lawful for the council to levy rates and charges against the land, "it was ultimately unfair". "In my view the Ninety Mile Beach subdivisions that cannot ever be developed should not be subject to rates and charges - but ultimately, should be returned to public ownership."

Some of the complaints received by the Ombudsman focused on the council's plan to sell blocks on the open market, and suggestions it was making a profit from the sale. Ms Glass found that the "council's acquisition and proposed sale of land generally followed appropriate processes and was not unreasonable". Ms Glass said central to many of the complaints was an issue she could not fix – the original flawed land sales process. "The original landowners understandably feel cheated, and their experience sadly reflects the era before planning controls protected our natural environment. But my investigation cannot overturn that original flawed transaction, for which the government or council of today cannot be held responsible... Some of the promotional material for Golden Beach and surrounds, once touted as Victoria's Surfers Paradise. Credit:Jason South "It is my firm view that this long-running saga must be brought to an end, and the only way this will happen is if the land that cannot ever be developed is acquired, in the public interest, for the benefit of all."

Loading But some of the owners of the blocks are angry with the Ombudsman's report, saying it did not come close to addressing their grievances. "I think that's terrible," Maureen Verga said. "They're not providing us with the money that we paid for it... We paid most of the rates and all of that in the early years." Vassily Afcouliotis said the recommendations did not do the "proper thing" by landowners, but acknowledged some steps had been taken to address landowner anger. Rosey Ammendola said there was an "element of disappointment" because the report did not cover the specific issue that affected her parents. She says they were pressured into handing back their block after receiving letters from lawyers, and she has questioned whether that process was legal.

They had also given the land back before the 2006 cut-off for rates refunds, and would not be eligible for any cash back. "It was a very general sort of approach to what's taken place," Ms Ammendola said. In a statement, Wellington Shire Council said that it welcomed the report and was “particularly pleased that the Ombudsman expanded the scope of her review to include fundamental recommendations that will bring this long-running saga to an end”. “A key recommendation however is that the state government facilitates the compulsory acquisition of all undevelopable land and return it to public ownership, such as Parks Victoria. “To date, all acquisition of land has been voluntary with many property owners choosing to retain ownership. Council will immediately commence a dialogue with the state government to determine their position on compulsory acquisition and how that process might unfold.”

The statement said the council was happy to consider refunding rates and was now seeking legal advice on that. The report will be discussed at the council’s August 20 meeting. State Planning Minister Richard Wynne said the government welcomed the report on the issue. "We will continue to support the Wellington Shire Council as it implements its long term solution for the Ninety Mile Beach and work towards an outcome that provides certainty for affected landowners," Mr Wynne said. Gabrielle Costa is morning homepage editor for theage.com.au.