What is a Voluntary Planning Agreement?

    A voluntary planning agreement is an agreement between a planning authority (e.g. Council) and a developer (e.g. Huntlee) in which the developer is required to dedicate land free of cost, and/or pay a monetary contribution to Council, and/or provide associated infrastructure to be used for or applied towards a public purpose.

    What is a Deed of Variation?

    A deed of variation is a legal document, that amends the terms of an executed Voluntary Planning Agreement.

    What are the proposed changes to the Planning Agreement?

    The Draft Third Deed of Variation to the Huntlee Planning Agreement seeks to amend the document to:

    • reflect modifications to the Huntlee Major Project Approval, which have occurred since the agreement was originally entered into;
    • permit certain infrastructure, listed as Development Contribution Items 5, 6, 7, 8, 9, 12 and 15 in Schedule 2 of the Agreement, to be constructed and dedicated to Council as discrete items, rather than collectively in project substages;
    • reflect legislative changes that have occurred since the Agreement was first entered into by the Developer and Council;
    • clarify certain definitions in the Planning Agreement;
    • include a new clause permitting (as an option) the developer to deliver the Community Hub in lieu of the monetary contribution for that item;
    • clarify that the maximum monetary contribution amount specified in Schedule 2 must be indexed in accordance with the Consumer Price Index (CPI), as defined in the Planning Agreement;  
    • clarify that allotments listed in Schedule 5 of the Planning Agreement are wholly excluded from the payment of section 7.12 contributions in accordance with the original intent of the agreement; and
    • update Schedule 2 of the Planning Agreement to reflect the outcome of negotiations between the developer and Council and reflect an increase in development contributions resulting from a rise in lot yield over successive modifications to the Major Project Approval (from 1473 lots to 1919 lots).

    Summary of Negotiated Amendments

     

    Negotiated Amendments

    Details

    Definitions

    Definition, Individual WIK Component

    New definition included at the request of the Developer to allow for certain infrastructure to be constructed and dedicated to Council as discrete items, rather than collectively in project substages, as set out in the existing Planning Agreement.  Council staff do not object to the proposed amendment, which will enable a more timely dedication of the Schedule 2 works and monetary contributions to Council.

      

    Definition, Security Amount

    Definition amended by both parties to clarify that the value of the security amount for Schedule 2 works is to be calculated using the estimated or tendered construction cost, rather than the value specified in Schedule 2 of the Planning Agreement. Council staff do not object to the proposed amendment on the basis that an estimated or tendered construction cost is often more reliable that the values listed in Schedule 2 for those works.

     

    Clause 7.2 - Delivery of Community Hub in lieu of monetary contribution

    Clause amended at the request of the Developer to enable the Developer (as an option) to deliver the Community Hub on behalf of Council in lieu of the monetary contribution for that item.  Council staff do not object to the proposed amendment on the basis the Developer benefits from an economy of scale at Huntlee and is likely able to deliver the Community Hub for less than it would cost Council. The proposed amendment is also at no risk to Council.

    Clause 7.3(d) - Clarification of CPI adjustment for Schedule 2 monetary contributions

     

    Clause amended at the request of Council staff to clarify that the monetary contributions for the Schedule 2 works are subject to CPI.

    Clause 9 and Schedule 1 – Application of sections 7.11 and 7.12

     

    Clause amended at the request of Council staff to clarify 

    the original intent of the original clause.

    Schedule 2 – Development Contributions

    • Item 1 – Community Building

    Item removed at the request of Council staff. Works in kind contribution of $1.25M transferred to Item 2, Community Hub. The amendment reflects Council’s preference for community facilities to be co-located within multi-purpose centres.

     

    • Item 2 – Community Hub

    Community Hub redefined as library (1,127m2), multi-purpose centre (1,100m2) and neighbourhood centre (500m2) at the request of Council staff. Monetary contribution increased from $5,455,000 to $8,570,312. The monetary contribution includes $1.25M transferred from Item 1, Community Building, and $1.2M transferred from Item 14, Childcare / Government Pre-schools. The increased contribution also reflects the rise in development lot yield over successive modifications to the Major Project Approval (from 1473 lots to 1919 lots).

     

    • Item 4 – Local Sports Fields

    Item removed at the request of Council staff. Works in kind contribution of $3,444,600 transferred evenly between Item 6, District Parks, and Item 12, District Sports Field. The amendment reflects the direction of Council’s adopted Recreation and Open Space Strategic Plan (ROSSP) that “no additional Local Sportsgrounds are supported in the future due to the overall surplus across the LGA and their high establishment and maintenance cost relative to their recreational value”.

     

    • Item 5 – Core Riparian Zones

    Item amended at the request of the Developer to permit works to be constructed and dedicated to Council as discrete items, rather than collectively in project substages. The works in kind contribution associated with Item 5 has also been increased from $2,253,800 to $2,505,289 to reflect a rise in development lot yield over successive modifications to the Major Project Approval (from 1473 lots to 1919 lots).

     

    • Item 6 – District Parks

    The number of District Parks to be provided by the Developer has been increased from 2 to 3 at the request of Council and the total area of land to be dedicated to Council for district parks has been reduced from 8.28ha to 6.79ha. The amendment aligns with Council’s adopted ROSSP, which outlines that the minimum size of a district park is to be 2ha of usable land. The works in kind contribution associated with Item 6 has been increased from $5,179,125 to $6,901,425. The increase is a result of $1,722,300 having been transferred from Item 4, Local Sports Fields.

     

    • Item 7 – Local Parks

    The number of local parks to be provided by the Developer has been reduced from 8 to 7 at the request of Council. The anticipated Huntlee Stage 1 population is 6,787. Council’s ROSSP requires 1 local park per 1000 people. Therefore 7 parks are required in Huntlee Stage 1. The total area of land to be dedicated to Council for district parks has been reduced from 4.67ha to 3.44ha. The value of the works in kind contribution has not been changed and remains $3,482,900. The amendment generally aligns with Council’s adopted ROSSP, which outlines that the minimum size of a local park is to be 0.5ha of usable land. 

     

    • Item 11 – Regional Recreation Facilities

    The monetary contribution associated with Item 11 has been increased from $1M to $1,121,964 to reflect a rise in development lot yield over successive modifications to the Major Project Approval (from 1473 lots to 1919 lots).

     

    • Item 12 – Regional Sports Field

    At the request of Council, the requirement for one Regional Sports Field is to be replaced with a requirement for two district sports fields and the total area of land to be dedicated to Council for district parks has been reduced from 10 to 9.63ha. The monetary contribution associated with Item 12 has been increased from $2,275,588M to $2,553,122 to reflect a rise in development lot yield over successive modifications to the Major Project Approval (from 1473 lots to 1919 lots). A works in kind contribution of $1,722,300 has also been transferred from Item 4, Local Sports Fields. The first District Sports Field is to be provided at the 1,500th lot and the second at the 2,500th lot.

     

    • Item 14 – Childcare / Government Pre-schools

    Item removed at the request of Council staff. Works in kind contribution of $1,200,000 transferred to Item 2, Community Hub. Council is no longer involved in the management and operation of childcare centres or government pre-schools.

     

    • Item 15 – Wine Country Drive Planted Median Maintenance

    Item amended at the request of the Developer to acknowledge dedication of the planted medians (0.25ha) to Council.

    Schedule 2, Land Dedication

    Staging Plan updated included to clarify the location of Individual WIK components, as defined in the Planning Agreement.

     

    Schedule 5 – Land wholly excluded from the application of section 7.12 of the Act

    Schedule 5 included to clarify allotments that are wholly excluded from the payment of section 7.12 contributions.     

    What is the benefit of Council entering into the third Deed of Variation to the existing Huntlee Planning Agreement?

    The Third Deed of Variation seeks to ensure Council is receiving an appropriate level of development contributions in relation to Huntlee and will address various issues identified (link to question 2) in the Planning Agreement since the document was first executed by the parties in November 2015. The Third Deed of Variation will also align the VPA with the Huntlee Major Project Approval (as modified).