WORKS IN KIND AGREEMENT [ADDRESS / APPLICATION]
Page 21 Page 21 Execution Page
The common seal of The Hills Shire Council was affixed under a resolution passed by council
on ………..
in the presence of:
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General Manager
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Witness
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Mayor
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Executed by the Developer in accordance with s127 of the Corporations Act 2001 (Cth):
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Secretary/Director
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Print name
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Director
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Print name
ITEM-4 DRAFT VOLUNTARY PLANNING AGREEMENT - PLANNING PROPOSAL 6-12 & 16-20 GARTHOWEN CRESCENT, CASTLE HILL (24/2016/PLP)
THEME: Balanced Urban Growth.
OUTCOME: 7 Responsible planning facilitates a desirable living environment and meets growth targets.
STRATEGY: 7.2 Manage new and existing development with a robust framework of policies, plans and processes that is in accordance with community needs and expectations.
MEETING DATE: 10 JULY 2018 COUNCIL MEETING
GROUP: STRATEGIC PLANNING
AUTHOR: SENIOR TOWN PLANNER
JANE KIM
RESPONSIBLE OFFICER: MANAGER – FORWARD PLANNING STEWART SEALE
EXECUTIVE SUMMARY
This report recommends that the draft Voluntary Planning Agreement (VPA) submitted in association with the planning proposal for land at 6-12 & 16-20 Garthowen Crescent, Castle Hill (24/2016/PLP) be subject to legal review and subsequently be publicly exhibited concurrently with the planning proposal.
The draft VPA requires that as part of any future development of the land at 6-12 and 16-20 Garthowen Crescent, Castle Hill, a monetary contribution be paid to Council with respect to any yield on the site over and above the planned growth under the Castle Hill North Precinct Plan and draft Contributions Plan.
The recommendation to exhibit the VPA for public comment does not bind Council to the approach set out in the VPA. It allows for engagement with the wider community on the planning proposal and the provision of local infrastructure. Following the exhibition period Council will consider a further report on the planning proposal, draft development control plan and VPA and will make a decision as to how to proceed.
APPLICANT
Architectus Group Pty Ltd on behalf of HCM Group and Kassis Classic Homes.
OWNERS
Mr D R Lea, Mrs S K Lea, Mr D L Lea and Mrs L Lea Mr N Kalina and Mrs D Kalina Mr K A Pratt and Mrs M A Pratt Mr G E Hayunga
Mr J K Soady and Mrs B E Soady
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POLITICAL DONATIONS Nil disclosures by the proponent.
REPORT
The purpose of this report is to consider a draft Voluntary Planning Agreement (‘VPA’) offer which has been submitted in conjunction with the planning proposal (24/2016/PLP) for land at 6-12 and 16-20 Garthowen Crescent, Castle Hill.
BACKGROUND
On 8 August 2017, Council resolved to forward a Planning Proposal for land at 6-12 and 16-20 Garthowen Crescent, Castle Hill to the Department of Planning and Environment for Gateway Determination.
Figure 1
Aerial view of the site and surrounding locality
The planning proposal would facilitate a high density residential development on the site comprising two (2) residential flat buildings (13 and 18 storeys respectively) accommodating 185 units by amending LEP 2012 to:
1. Rezone the site from R3 Medium Density to R4 High Density Residential;
2. Increase the minimum lot size from 700m2 to 1,800m2;
3. Increase the maximum building height from 9 metres to 54 metres;
4. Apply a maximum incentivised floor space ratio of 2.5:1, subject to compliance with Council’s housing mix and diversity provisions (Clause 7.12 of LEP 2012);
and
5. Include a new local provision applicable to the site which would provide a 20%
floor space bonus subject to deliver of key development outcomes for the site
(amalgamation of the allotments, through-site pedestrian link, through-site vehicular link at basement level for residents and appropriate relationship with the adjoining heritage item).
Figure 2
Site Plan – Development Concept
Figure 3
Photomontage – Development Concept
The Precinct Plan and draft Contributions Plan for the Castle Hill North Precinct anticipate and cater for approximately 96 dwellings to be achieved on this site. Accordingly, the proposal would result in approximately 89 additional dwellings, not planned or catered for under this draft Contributions Plan.
In recognition of this, Council also resolved to proceed with discussions with the proponent regarding preparation of a draft VPA which would resolve how the Proponent
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will address the increased demand for local infrastructure generated by the proposed increase in residential density. Council’s resolution required that following the preparation of the draft VPA, but prior to any public exhibition of the planning proposal, the draft VPA must be reported to Council for consideration.
A Gateway Determination was issued by the Department of Planning and Environment on 13 October 2017 (and revised in February 2018), which permits the Planning Proposal to proceed to public exhibition.
DRAFT VOLUNTARY PLANNING AGREEMENT
On 5 June 2018, Council received a draft VPA offer with respect to the planning proposal.
The VPA seeks to address the additional demand for new local infrastructure that would be generated by approximately 89 additional units beyond that already planned and catered for under the draft Contributions Plan for Castle Hill North.
Under the draft VPA, as part of future development of land at 6-12 & 16-20 Garthowen Crescent, the Developer would be required to:
a) Pay monetary contributions to Council under the applicable Contributions Plan for Castle Hill North with respect to the first 96 dwellings on the site (being the yield anticipated and catered for by the Contributions Plan);
b) With respect to any dwellings on the site in excess of the first 96 dwellings, pay an additional monetary contribution of $235,500 (traffic facilities), plus a contribution per dwelling calculated at the following rates:
• Rate per 1 bedroom unit - $19,819.80
• Rate per 2 bedroom unit - $20,985.67
• Rate per 3 bedroom unit - $29,146.77
• Rate per 4 bedroom unit - $36,141.99
Based on the draft Contributions Plan for Castle Hill North, the Developer would be required to pay an average contribution of $22,363 per unit in association with the first 96 dwellings approved.
Following this, the VPA would require further monetary contributions of approximately
$2.22 million with respect to the additional 89 dwellings that would be permitted as a result of the planning proposal, as demonstrated below:
Mix Yield Offer
(Rates within Draft VPA) Total
1 bed 22 $19,819.80 $440,991
2 bed 49 $20,985.67 $1,018,759
3 bed 18 $29,146.77 $530,604
4 bed $36,141.99
Additional Traffic Contribution $232,500
TOTAL 89 $2,222,853
Average of $24,561 per dwelling (Present Value)
(Note: Contribution rates will be indexed based on the ABS Producer Price Index) Table 1
Draft Voluntary Planning Agreement Monetary Contribution Offer
REVIEW
A review of the draft VPA offer has been completed and the following matters are provided for consideration:
• The Castle Hill North Planning Proposal (16/2016/PLP) and draft Contributions Plan anticipate and cater for up to 96 dwellings on the site. It is therefore reasonable to levy the first 96 dwellings under this Contributions Plan and the planned local infrastructure is sufficient to cater for this yield. Based on the draft Contributions Plan, the first 96 dwellings would be levied approximately $2.1 million, at an average rate of $22,363 per dwelling.
Mix Yield CP Rate (NPV) Total
1 bed 24 $19,819.80 $475,675
2 bed 52 $20,985.67 $1,098,886
3 bed 20 $29,146.77 $572,337
TOTAL 96 $2,146,898
Average of $22,363 per dwelling (Present Value) (Note: Contribution rates will be indexed)
Table 2
Contributions payable under the draft Castle Hill North Contributions Plan
• The planning proposal would facilitate approximately 89 additional dwellings which are not anticipated or catered for under the draft Contributions Plan for Castle Hill North. The VPA addresses the additional demand created by this additional yield that would be permitted as a result of the site-specific planning proposal (24/2016/PLP).
Monetary contributions received through the VPA would be available for Council’s expenditure on new local infrastructure and public domain improvements within the locality.
• The value of monetary contributions offered through the VPA in association with the additional 89 dwellings that would be permitted by the planning proposal exceeds that which would otherwise be payable under the draft Contributions Plan applicable to the land. Specifically, the additional 89 dwellings would be levied approximately
$2.2 million, at an average rate of $24,561 per dwelling (which is in excess of the
$22,363 per dwelling that would be payable under the Contributions Plan).
• Monetary contributions received under the draft VPA would be available for Council to, at its discretion, put towards:
- Full or partial funding of additional passive open space, active open space and/or community facilities to address additional demand generated by development within the Castle Hill North Precinct and Sydney Metro Northwest Corridor;
- Full or partial funding of further embellishments to existing passive open space, active open space and/or community facilities to increase the functional capacity of these facilities and address demand generated by development within the Castle Hill North Precinct and Sydney Metro Northwest Corridor; and
- Full or partial funding of local traffic infrastructure improvements within the Castle Hill Station Precinct.
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• The draft Contributions Plan for Castle Hill North provides a reasonable indication of the cost of providing local infrastructure to service growth within the Castle Hill North Precinct. Noting that the VPA offer exceeds that which would otherwise be payable under this Contributions Plan, it is considered that the monetary contribution proposed under the draft VPA is adequate, proportionate to the demand generated by the additional yield and reflective of the likely cost to Council to provide additional local infrastructure.
IMPACTS Financial
The draft VPA provides the following obligations in association with any future development of land at Garthowen Crescent, Castle Hill:
• Payment of monetary contribution under the applicable Section 7.11 Contributions Plan with respect to the first 96 dwellings on the land (approximately $2.1 million);
• and Payment of additional monetary contribution under the Voluntary Planning Agreement with respect to any yield in excess of 96 dwellings (approximately $2.2 million).
The recommendation of this report is not binding on Council. The recommendation is only that the VPA be subject to legal review and exhibited in conjunction with the planning proposal for the site. Following the exhibition period Council would consider a further report on the planning proposal and VPA and make a decision as to how to proceed.
Strategic Plan - Hills Future
The draft VPA supports the Community Strategic Direction by contributing to the delivery of facilities and infrastructure which will enhance and maintain an attractive, safe and tidy environment and ensure future development is consistent with the Shire’s character.
RECOMMENDATION
1. The draft Voluntary Planning Agreement be subject to a legal review at the cost of the proponent, prior to public exhibition.
2. The draft Voluntary Planning Agreement be updated, as required, prior to exhibition to incorporate the recommendations of the legal review.
3. The draft Voluntary Planning Agreement be publicly exhibited concurrently with the associated planning proposal (24/2016/PLP) for a period of at least 28 days in accordance with the Environmental Planning and Assessment Act 1979.
ATTACHMENTS
1. Draft Voluntary Planning Agreement – Garthowen Crescent, Castle Hill (21 pages)
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