Court ruling set to hit other projects

A SUPREME Court decision putting the brakes an $80 million Salamanca development could have major implications for other big developments around the state.

Sultan Holdings’ bid to build apartments, offices and shops on the site can’t proceed because the developer wants to excavate so much rock for an underground carpark, it is classified as a quarry.

And without special approval, the plan cannot go ahead.

The court’s decision potentially raises questions about the validity of approvals for other major developments around the state which require large-scale excavation.

In January, the Supreme Court had upheld concerns by the owners of the nearby Salamanca Inn over proposed excavations at the prime site.

Sultan Holdings appealed that ruling, arguing it “misconstrued the Sullivans Cove Planning Scheme”.

But in a Full Court decision handed down yesterday, Sultan Holdings’ appeal was dismissed and a cross-appeal by John Fuglsang Developments Pty Ltd was allowed.

Justices Robert Pearce and Michael Brett and Acting Justice David Porter ordered that if the project was reconsidered by the planning tribunal, the application must be referred to the board of the Environment Protection Authority.

The EPA referral arose from the proposed excavation works.

The Environmental Management and Pollution Control Act defines a quarry as “the extraction of any rock or gravel and producing 5000 cubic metres or more of rock or gravel per year” and activity at that level requires special approval.

Sultan’s application was not referred to the EPA board and Acting Justice Porter said the question was about whether it should have been.

The court noted at least 35,000 cubic metres of rock were to be excavated by drilling and blasting for the Salamanca project — meaning the development was indeed a quarry under the law.

“What may make a ‘ quarry’ in the ordinary sense of the word adds nothing to the level of potential environmental harm it may cause, if excavation is at the specified rate,” Acting Justice Porter said.

Project manager for the development Moe Sultan said the company was disappointed with the court outcome.

“We are currently awaiting the full advice from our legal counsel,” he said.

“We expect to have this by late January, 2018. Upon this advice being received, we will review our position in regards to this significant project for the city of Hobart.”

Sultan Holdings had a development application for the site, which operates as an open-air car park just a stone’s throw from Salamanca Place, approved by the Hobart City Council in February, 2015.

The project involved a 360space carpark, 30 serviced apartments, a ground-floor cafe, offices, a retail space and a wellness centre.

At the time, Ali Sultan said it would be the “jewel in the crown” of his many Hobart projects.