The Gold Coast Bulletin

FEES PAIN FOR COUNCIL

Court rules council wrongly charged developmen­t giant for big project

- KATHLEEN SKENE BUSINESS EDITOR

THE Planning and Environmen­t Court has found Gold Coast City Council incorrectl­y charged Sunland almost $20 million in developmen­t fees for its $850 million project The Lakes at Mermaid Waters.

Judge Nicole Kefford ruled five bills sent by the council to Sunland were not valid infrastruc­ture charges notices and that none of the documents complied with the Sustainabl­e Planning Act.

The council yesterday said they had lodged an appeal against the decision.

THE Planning and Environmen­t Court has found Gold Coast City Council incorrectl­y charged Sunland almost $20 million in developmen­t fees for its $850 million project The Lakes at Mermaid Waters.

Judge Nicole Kefford ruled five bills sent by the council to Sunland were not valid infrastruc­ture charges notices and that none of the documents complied with the Sustainabl­e Planning Act.

The judge tore apart the council’s arguments that the notices were valid, finding they did not adequately state why Sunland was being charged.

The council yesterday said they had lodged an appeal against the decision but would not answer questions on how much the legal actions, which started in 2016, had cost ratepayers.

In Sunland’s applicatio­n, lawyer Tony Hickey said a previous developmen­t on the 42ha site, Lakeview at Mermaid, was approved by a court in May 2007, and approval was extended in 2011 until May 2017.

Sunland bought the site with that preliminar­y developmen­t approval still in place, on the understand­ing that charges paid by the previous developer would be credited for future comparable developmen­ts.

Mr Hickey said the council’s then-supervisor of developmen­t contributi­ons, David Lohoar, confirmed in writing that fees already paid on the land could be used to offset charges “for all future developmen­t approvals” applied for under the preliminar­y approval gained by the previous developer.

Sunland put the land under contract a month later, with the $61 million sale settling in May 2015.

During Sunland’s developmen­t applicatio­n process, the council issued five documents titled “infrastruc­ture charges notice” that did not take the credits “that exceeded $19 million” into account.

Mr Hickey’s submission also said the notices were invalid because they didn’t include informatio­n required by the Act and argued the council doubled up on some infrastruc­ture fees.

The stoush began the day before Christmas Eve 2016, with the decision published this month.

Court documents reveal the judge accepted none of the council’s six legal arguments for not including the reasons for issuing the fees on the notices issued to Sunland.

The council further argued the charge notices should not be set aside because Sunland had “not suffered any prejudice by reason of any noncomplia­nce” by the council.

It argued the developer had appealed the charges notices on numerous grounds and was “seeking to circumvent” the appeals process. The judge did not accept those arguments.

The council has applied for a strikeout of Sunland’s applicatio­ns or a summary judgment to finalise the matter. The court will now have to hear from both sides on how to proceed.

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