Item 9.2 - Attachment 1

Revised Draft Voluntary Planning Agreement for Morton Street that takes into account Council's revised costs (Oct 2009)

 

 

PLANNING AGREEMENT FOR THE DEVELOPMENT OF NO.2 MORTON ST PARRAMATTA

We attach:

A draft of suggested "operative" provisions of a proposed Planning Agreement to be made under Section 93F of the Environmental Planning and Assessment Act 1979 (EPA Act).

A short note on the operation of Section 93F of the EPA Act and, in particular, how the relevant parts of the proposed Planning Agreement will comply with the various requirements of that section.

The subject land at No.2 Morton St Parramatta is owned by Frasers Morton Pty Ltd (Frasers).

The purpose of the proposed Planning Agreement is to provide certainty as to the public facilities which will be provided by Frasers Morton Pty Limited if the land is rezoned and approval is given to a development which achieves the yields and other objectives for blocks F, G and J of the Structure Plan (September 2006) for the Elizabeth Precinct.

Frasers is of the view that a Planning Agreement has a number of advantages. It will greatly facilitate the redevelopment of not only our site but also the other parts of the Precinct.

This is particularly so having regards to the regional significance of the proposed foreshore dedication, pedestrian bridge, cycle/pedestrian paths, landscaping and public art works.

Frasers is prepared to enter into an agreement as we are of the view that the timely provision of the foreshore reserve, as envisaged in the Structure Plan, will add to the desired amenity of this part of Parramatta. This is to be contrasted with what could be achieved under Section 94 contributions. It would take some time to finish the works and Council would most likely have to fund a substantial proportion of the cost.

Council, and the people of Parramatta, will benefit in that the implementation of these public policy objectives will be achieved in a more timely manner than would otherwise be the case. Indeed, without the agreement there must be some question as to whether they would be achieved to the extent proposed.

To ensure the urban design outcomes envisaged in the Structure Plan are achieved in the development of the site, Frasers will commit to an Architectural Design Competition for the site masterplan. The details of the competition process will be agreed with Council.

The attached draft Planning Agreement is provided for the consideration of the Elizabeth Precinct Project Control Group. When agreed, it is proposed that a formal draft of the Voluntary Planning Agreement will be prepared by Frasers on behalf of Council for public exhibition in conjunction with the Structure Plan

Appendix "A"

Draft clauses of proposed Planning Agreement

The following is an initial draft of some of the "operative" provisions of the proposed planning agreement.

This draft is not in its final form. Other more “mechanical” provisions are required and it is subject to the outcome of negotiations with Council.

1                 The planning agreement applies to:

(a)              No 2 Morton Street [a full title description will be inserted here]; and

(b)              the development proposed to be carried out on No 2 Morton Street, where that development is in conformity with the criteria set out in the next clause.

(c)              Development undertaken in two Stages, Stage 1 being development of the vacant developable land and warehouse unit 5, and Stage 2 being re-development of the land currently occupied by warehouse units 1, 2, 3 and 11 (see attached sketch).

2                 The proposed development is the construction, use and subdivision of residential and commercial buildings:

(a)              generally in accordance with the Structure Plan for the Elizabeth Precinct (dated September 2006), as it relates to Blocks No F, G and J; and

(b)              where the yields, net floor area and building envelopes for those blocks set out at pages 47, 48 and 49 of the Structure Plan are achieved when calculated over the site in its entirety, and

(c)              that the quantum of developer contributions may be adjusted proportional to the actual yield achieved.

3                 The planning agreement will:

(a)              become operational when it is signed by the developer and Council;

(b)              cease to be operational if the current LEP is not amended, within[a time to be agreed] to allow the proposed development to take place;

(c)              provide that the dedications, other public facilities and contributions are to be provided as set out in Schedule 1 below.

4                 The public facilities which must be provided by the developer following the granting of a development consent meeting the criteria set out in clause 2 above are:

(a)              the developer will dedicate land along the Parramatta River foreshore, having a width of approximately 30 metres, to Council for public reserve (see attached sketch);

(b)              the developer will construct (complete) the pedestrian and cycle pathway along the river foreshore between the western side of Gasworks Bridge to the western side of James Ruse Drive;

(c)              the developer is to undertake landscaping works and install public artworks along the length of this "bridge to bridge" link;

(d)              the developer is to construct two mangrove viewing platforms and a mangrove boardwalk, if such is permitted following an appropriate study;

(e)              the developer is to construct a foreshore road from the southern end of Morton Street to link with new road as shown on page 44 of the September 2006 Structure Plan (see attached sketch);

(f)               the developer is to construct an active recreation area on the existing hardstand (car park), including hard surface playing courts for sports such as basketball, a family picnic area, children's playground and car parking area (see attached sketch);

(g)              the developer will contribute $1.5million towards the construction of a pedestrian bridge as shown in concept form in the September 2006 Structure Plan;

(h)              the developer is to supply, plant and maintain, until one year after the site redevelopment, the road reserve tree planting as shown on the plan on page 44 of the September 2006 Structure Plan.

(i)               The developer will construct (complete) the proposed turning circle/extension to Pemberton Street within the existing road reserve.

5                 The timing in which the above dedications, work and contributions are to be made (and the circumstances in which they are to be made are set out in Schedule 1.

6                 The parties agree that the indicative cost of the land and other facilities to be provided is as set out in Schedule 1. 

7                 The parties agree that the application of Section 94A of the EPA Act is excluded.

Note:

The Planning Agreement will also either:

(i)               Specify the boundaries of the areas to be dedicated  and the details of the works to be undertaken; or

(ii)              Provide a mechanism for determining those boundaries and other details

It is expected that:

(iii)             the works to be undertaken under clause 4 will be to a design approved by Council, where that design reflects the indicative cost of the works as set out in Schedule 1; and

(iv)              The boundaries of the land to be dedicated will be in accordance with approved subdivision plans.

Appendix “B”

 

Section 93F of the EPA Act

1                 A planning agreement under Section 93F of the EPA Act is a voluntary agreement.

2                 It is entered into between a person described as the developer, and, in this case, the Council.

3                 It can be entered into where:

(a)              an environmental planning instrument is to be amended; or

(b)              the developer wishes to lodge a development application.

4                 The agreement is one where the developer agrees to dedicate land free of cost, pay a monetary contribution, or provide any other material public benefit, or any combination of them, to be used for or applied towards a public purpose.

5                 Under Section 93F, a planning agreement must provide for the following:

(a)              a description of the land to which the agreement applies;

(b)              a description of:

(i)               the required change to the environmental planning instrument;

(ii)              the development to which the agreement applies;

(iii)             the nature and extent of the public facilities to be provided by the developer;

(c)              (i)                the time or times on which the provision is to be made;

(ii)           the manner by which it is to be made;

(d)              whether the agreement excludes (wholly or in part) the application of Section 94 or Section 94A of the EPA Act to the development;

(e)              if it does not exclude Section 94, whether benefits under the agreement are to be taken into consideration in determining a development contribution under Section 94;

(g)              a mechanism for the resolution of disputes;

(h)             the enforcement of the agreement by suitable means, such as the provision of a bond or guarantee.

Other sections of the act provide for the public exhibition of planning agreements. 

In this regard one of the objectives of Section 93F is to ensure appropriate transparency as to what is proposed.

 

Item 9.2 - Attachment 1

Revised Draft Voluntary Planning Agreement for Morton Street that takes into account Council's revised costs (Oct 2009)

 

Schedule 1

 

Schedule 2

Indicative Value/Cost

Timing/Circumstances

(a)

The developer will dedicate land along the Parramatta River foreshore, having a width of 30 metres, to Council, for public reserve (approx area 6,600m2)

Actual land cost  at $450/m2: $2,970,000

Council Valuation $2,000,000 (2004), which represents $300/m2

Within three months of completing development of Area G (refer Structure Plan p 45) and registration of the subdivision plan

(b)

The developer will construct (complete) the pedestrian and cycle pathway along the river foreshore between the western  side of Gasworks Bridge to the western side of James Ruse Drive

$300,000 plus design fees

(REVISED COUNCIL ESTIMATE UP TO $400,000)

Within three years of the later of:

·   commencing development; or

Council giving approval to the design of that part of the pathway through Council Reserve

(c)

The developer is to undertake landscaping works and install public artworks along the length of this "bridge to bridge" link

$100,000 plus design fees

As above

(d)

The developer is to construct three mangrove boardwalk/viewing platforms

Study & Report & Design Fees

    Eastern reserve boardwalk

    River Platform 1

    River Platform 2

 

 

$40,000

$75,000

$45,000

$23,000

As above

(e)

The developer is to construct a foreshore road from the southern end of Morton Street to link with a new road as shown on page 44 of the September 2006 Structure Plan

$260,000 plus design fees

(REVISED COUNCIL ESTIMATE AT $1,000,000)

·   To be completed with Stage 2.  To be dedicated on completion of construction

(f)

The developer is to construct an active recreation area on the existing hardstand (car park), including hard surface playing courts for sports such as basketball, a family picnic area, car parking area, children's playground.

Land value for approx 6000m2 @ $450/m2: $2,700,000 actual cost

Council valuation @ $300/m2: $1,800,000

plus

$350,000 (cost of works) plus design fees

  The works are to be fully completed concurrent with the completion of Stage 2. The land dedication will occur in conjunction with registration of the Subdivision and Strata Plans for the Stage 2 development

(g)

The developer will contribute $1.5 million towards the construction of a pedestrian bridge as shown in concept form in the September 2006 Structure Plan

$1.5 million

To be paid into a trust fund established for this specific purpose, on commencement of Stage 2 (see Notes 1 & 2 below)

(h)

The developer is to supply, plant and maintain, until one year after the site redevelopment, the road reserve tree planting as shown on the plan on page 44 of the September 2006 Structure Plan

$50,000 plus design fees

To be undertaken in conjunction with Stage 1 for available road areas (see Note 3 below)

(g)

New vehicle turning point at end of Pemberton St

$30,000 plus design fees

 

(REVISED BY COUNCIL UP TO $60,000)

To be undertaken in conjunction with Stage 1

 

Note 1:  It is suggested that Council design and gain approvals for the bridge with a view to construct the bridge concurrently with Stage 2, so as to achieve cost savings in completion of the roadworks, pathways, landscaping and recreation area.

Note 2: In the event that Council is granted additional funds sufficient to undertake construction of the bridge prior to commencement of Stage 2, Frasers will undertake to bring forward their contribution to ensure that the construction can be undertaken within the earlier timeframe.

Note 3:  If Council's work depot redevelopment lags behind Stage 2, Council will assume responsibility for this element of the precinct landscaping within their site and associated road works.

Note 3:  The amount of money to be provided by the developer into a Trust Account for the construction of the pedestrian bridge shall be subject to escalation in accordance with CPI. The calculation of the escalation amount will commence from the date of gazettal of the LEP until the developer commences Stage 2 and makes the payment.

 

Contribution Summary

Land contribution:                                           Actual Cost: $5,670,000 for approx 12,600m2 (1.26 ha, representing 25.6% of the total site)

                                                         Council Valuation: approx $3,800,000

Works Contribution:                                        $1,273,000 plus design fees (say) $227,000 = $1,500,000 (REVISED BY COUNCIL TO BE AN ADDITIONAL $860,000)

Cash Contribution;                       $1,500,000

Per Dwelling:                                 $14,950 per dwelling based on actual cost

                                                         $11,725 per dwelling based on Council land valuation

Section 94                                     Current S94 plan equates to $5589 per dwelling

Note: these figures are based on a yield of 580 dwellings