Huntlee Court Judgment A Win for the Industry
Date: 9 Dec 2011
The developer of the first township for the Hunter region in 50 years has had a major court win which has ramifications across the industry for those who negotiate Voluntary Planning Agreements. The $1.5 billion Huntlee New Town proposed by LWP Property Group has been the subject of two previous court actions by protest group opposed to the proposal for the Hunter. On Thursday, the Court of Appeal overturned a decision of the NSW Land and Environment Court earlier this year that declared invalid the Major Development SEPP amendment that had effectively rezoned the Huntlee land. A key part of this week’s Court of Appeal judgment is that Huntlee’s developer was not required to provide an up-front bank guarantee for financial contributions, under Huntlee’s Voluntary Planning Agreement.
UDIA NSW CEO Stephen Albin has described the decision as a win for common sense. “The main point is that it will give developers and government the confidence to negotiate Voluntary Planning Agreements with flexibility in security arrangements for financial contributions, rather than forcing developers to make up-front bank guarantees that threaten the viability of projects,’’ said Mr Albin. “We have been monitoring the situation closely because it has massive ramifications for a range of developers who have also entered Voluntary Planning Agreements and will now have the confidence to proceed with their projects. It will also give those in the industry the confidence to enter Voluntary Planning Agreements in the future.’’ Mr Albin said it was also a major win for the Hunter region. “There are major issues in the Hunter region with regards to land supply and this is really going to create more confidence in investment in the Hunter, and make housing more affordable.’’
To read the judgement, click here.