17/03/2011 - 00:00

Developer contributions causing divisions

17/03/2011 - 00:00

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THE state government says a $250 million developer contribution scheme, launched at the Wungong Urban Water project in Armadale, will significantly boost land supply and set new standards in facilitating development across multiple landowners.

Developer contributions causing divisions

THE state government says a $250 million developer contribution scheme, launched at the Wungong Urban Water project in Armadale, will significantly boost land supply and set new standards in facilitating development across multiple landowners.

But two prominent Perth developers, who declined to be named, raised concerns over the high cost of the scheme compared to similar initiatives across the metropolitan area.

The 1,500-hectare Wungong Urban Water redevelopment area currently contains about 330 properties and has about 205 separate landowners.

The area currently contains horse, cattle and sheep grazing properties, orchards, a poultry farm and rural residences.

The project is expected to provide up to 16,000 lots over the next 10 to 15 years, providing homes for a potential population of 45,000.

Under the contribution scheme, launched by Planning Minister John Day earlier this month, traditional costs of subdividing land such as power, water and sewer infrastructure are borne by the developer, as at all urban subdivision projects.

Mr Day said the Wungong scheme, which will be administered by the Armadale Redevelopment Authority, covered the additional cost of constructing regional roads and purchasing and developing land earmarked for public open space.

The Armadale Redevelopment Authority had met with key developers on a number of occasions to shape the final composition of the scheme, Mr Day said.

“The scale of the Wungong Urban project and the difficult water environment together with the need to install district roads dictates the infrastructure costs to be shared by all developers,” he said.

“Since the public open space is not evenly distributed across land holdings, achieving equity required this element to be included.

“The scheme also covers the cost of meeting the environmental conditions imposed on the Wungong Urban project by the EPA relating to water management and also the costs of community halls, playing fields, wetland rehabilitation, road bridges, pedestrian bridges and some walking and bicycle paths.”

Including the costs for public open space, which have not been included most other developer contribution schemes in Perth, the costs at Wungong are around $16,000 per lot.

That $16,000 includes $8,779/lot for district infrastructure, $4,497/lot for public open space land and development, and $2,277/lot for community infrastructure.

Under the City of Cockburn’s draft scheme, developer contributions range between $2,586 and $3,600 per lot, not including administration costs.

The City of Swan’s draft developer contribution scheme also includes costs for public open space, and contribution costs have been estimated at $17,000/lot.

That includes $12,984/lot for transport infrastructure, $2,581/lot for ‘local community infrastructure’, including public open space, and $1,320/lot for ‘sub regional community infrastructure’, including playing fields, and land earmarked for the development of community centres.

Mr Day said the Wungong scheme was the biggest the state government had entered into and it was difficult to compare the scheme to other initiatives in place around Perth.

“For example, the East Wanneroo DCS costs are around double the Wungong Urban costs due to the high cost of land in East Wanneroo,” he said.

“However, unlike most other schemes, the Wungong Urban scheme includes public open space land and development.

“Removing the public open space for comparative purposes shows the Wungong DCS cost to be very similar to that charged in North Forrestdale and Seville Grove.”

Mr Day said since all scheme items were district-wide works, all developers would benefit from the initiative, which would result in more land getting to market.

“It gives certainty of costs to be shared and removes disincentives to undertake works which benefit other later developers,” he said.

 

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