Extraordinary powers for an ordinary project

It’s not often the state government wields its power to “call in” developments.

These powers are extraordinary, and essentially allow the state government to take control of the project’s approval process and make a final decision.

Just two on the Gold Coast have been given the green light in the past 15 years.

In July 2012, then-deputy premier Jeff Seeney gave the green light to the $1bn Jewel Towers. The giant triple-tower project on the beachfront at Surfers Paradise was the biggest development pitched for the city during the lean years after the global financial crisis.

The Gold Coast City Council approved the project in late 2011.

Less than a year later, however, there were fears the project would fail to be realised, as a group of wealthy Brisbane-based families had lodged objections against the project in the Planning and Environment Court.

But the political landscape had changed dramatically in the previous year, with Tom Tate elected Gold Coast Mayor and the Campbell Newman-led LNP in power at a state level.

With more than 2500 jobs at risk, Mr Seeney used his rare “call in” powers to give him the sole authority to approve the project, something that could not be appealed in court.

Construction duly began three years later after developer Ridong struck a deal with China’s richest man, multibillionaire Wang Jianlin, the chairman of Beijing super corporation Dalian Wanda, to partner on Jewel and fund its construction.

Fast-forward to late 2014 and WA developer Perron Group’s plan to develop a giant site at Worongary.

The project, then known as Pacific View Estate and now as Skyridge, had been on the drawing board since 2010 but little movement had occurred.

The project was expected to go before the council but its developer filed an appeal against the council in the Planning and Environment Court on the basis there had been a “deemed refusal” by council.

The Perron Group then requested the state government call in the project.

Mr Seeney wrote to Mr Tate saying he intended to declare it a “project of state significance” on the basis that it would create 3500 homes.

The council’s planning committee voted against supporting state government plans to “call in” the Pacific View Estate project, and instead wanted the matter resolved in the Planning and Environment Court.

Among the issues council had with the project was the prospect for the development to have a detrimental effect on existing neighbourhood areas, its impact on the road network and that the council would be unable to assess future development applications of the site or levy infrastructure charges.

However the political landscape changed suddenly before the decision was made, with Labor back in power after the LNP government’s defeat in January 2015.

The deputy premier, Jackie Trad called it in, arguing it created a $32.3bn boost to the economy.

“It represents about 2700 jobs during the construction phase and it’s about delivering affordable, mixed-use housing for what is one of Australia’s fastest-growing cities,” she said at the time. “It’s a priority for our future.”

Comparatively, it seems odd that the state government would consider using the powers on the Gold Coast for the first time in a decade for the Arundel Hills Country Club project which would provide less than 400 homes and is dramatically smaller.