Addendum Agenda of Ordinary Meeting

791

Ordinary Meeting 13 December 2017

City Economy and Growth Report

DPG 08

S94 Contributions Review

Strategic Direction	Generating Opportunity Meet the challenges of Liverpool’s growing population
File Ref	325915.2017
Report By	Barry Millwood - Strategic Planning Contractor
Approved By	Tim Moore - Director, City Economy and Growth / Deputy CEO

Executive Summary

Council at its ordinary meeting on 25 October 2017 resolved to:

1. Direct the CEO to prepare a timeline for a review of the Section 94 Contributions plan; and

2. Report the timeline back to Council in the December meeting.

This report outlines the timeline for the review of the existing contributions plans for the Liverpool City Centre and the Established Areas as a priority action for Council. The report presents a 2 stage approach for updating the plans, anticipating an interim update to be completed by mid-2018, with a comprehensive update completed by mid-2019.

RECOMMENDATION

That Council:

1. Receive and note the timeframe for the delivery of revised contributions plans for the Liverpool City Centre and the Established Areas; and

2. Endorse the Interim and Comprehensive approaches to the review of the contributions plans for the Liverpool City Centre and the Established Areas and the indicative timeframes, as outlined in this report.

REPORT

In September 2015 Council considered a report on the review of the Liverpool City Council Section 94 Contributions Framework. Following the review, the 2 major resolutions were to:

· Increase the percentage contribution levy in Liverpool City Centre to 3% on the cost of all new development; and

· Adopt a percentage contribution levy in the Established Areas of 2% on the cost of all new development.

Revised draft contributions plans (CP) for Liverpool City Centre and the Established Areas were exhibited in 2016. Percentage contribution levies provided by s94A contribution plans are based on the cost of the development and the maximum percentage levy is specified in the Environmental Planning and Assessment Regulation 2000. The above proposed contribution rates exceed the regulated maximum and therefore require the approval of the Minister for Planning & Environment.

The Department of Planning and Environment (DP&E) have indicated that the 2% & 3% contributions sought by Council are not supported for the foreseeable future and this has delayed progress of Council’s proposed changes resulting from the s94 review.

To progress, a new approach is required to ensure infrastructure funding to service the growing population and revitalisation agenda. It is suggested that a 2 stage (interim and comprehensive) approach be implemented for both the Liverpool City Centre and the Established Areas, as outlined below.

Liverpool City Centre

The current s94A plan levies 3% on development within business zones and 2% in the residential and industrial zones.

Interim Approach

Staff will continue to pursue a submission to DP&E to raise the levy to 3% in the residential and industrial zones.

In parallel, and on advice that this is not likely to be supported, a revised CP for the city centre would be prepared.

The revised CP would involve retaining the 2% levy in the residential and non-residential zones and a corresponding deletion of some works to correspond with retaining a 2% levy. This could be achieved without compromising the scope of works to be provided as it would involve deletion of certain works that could ultimately be funded by future developments east of the Georges River.

The revised CP would largely retain the increased scope of works in the draft CP, which include additional park embellishments, access and bus priority, car parking, streetscape works (including increased tree cover) and footpath widening. The interim update would not require approval of the Minister for Planning and Environment as no change to the percentage levy would be involved.

It is anticipated that the interim update of the revised CP could be completed by mid-2018.

Comprehensive Approach

A comprehensive update of the CP for Liverpool City Centre would require various studies to more precisely identify the infrastructure that would be required for the additional development. It would draw from the recently completed Community Facilities Strategy and Open Space & Recreation Strategy and take into account the scope of development, infrastructure and CBD revitalisation that will be identified as part of the District Plan and the Collaboration Area. This would lead to a CP that could be either a percentage levy s94A plan or a conventional s94 plan.

As the reason for these studies is to inform a future CP, the cost could reasonably be funded by contributions from the Liverpool City Centre. The timeframe for completing the studies and subsequent CP would be influenced by finalisation of the District Plan and the Collaboration Area, with a targeted completion by mid-2019.

Established Areas

In the established areas, a conventional S94 plan levies contributions on residential development, excluding secondary dwellings and non-residential development.

Interim Approach

Staff will continue to pursue with DP&E the adoption of the draft 2016 s94A plan for a 2% levy.

In parallel, and on advice that this is not likely to be supported, a revised CP for the established areas would be prepared.

The revised CP could involve revising the unit costs for infrastructure in the existing CP based on more recent cost estimates in newer release areas.

A new s94A plan with a 1% levy can be applied to non-residential development which is not currently subject to S94 contributions. These updates would not require approval of the Minister for Planning and Environment.

It is anticipated that the interim update would be completed by mid-2018.

Comprehensive Approach

A comprehensive update of the CP for the Established Areas would require various studies to more precisely identify the infrastructure that would be required for the additional development. It would analyse the anticipated population growth, and build an evidence base for related infrastructure, drawing from the recently completed Community Facilities Strategy and Open Space & Recreation Strategy. This would lead to a CP that could be either a S94A plan (based on a % levy) or a conventional S94 plan.

As the reason for these studies is to inform a future CP, the cost could reasonably be funded by contributions from the Established Areas. The timeframe for completing the studies and subsequent contributions plan would be influenced by finalisation of the District Plan, with a targeted completion by mid-2019.

IPART Submission

Council officers are in the process of preparing submissions to the Independent Pricing and Regulatory Tribunal (IPART). The submissions will seek an assessment by IPART as to the reasonableness of the contributions plans for Austral / Leppington North, East Leppington, and Edmondson Park. The findings will then form the basis of submission to DP&E to claim reimbursement of contributions that were not received due to the $30,000 cap for the areas of East Leppington, Leppington North, Austral and Edmondson Park. Following some recent changes by the Minister for Planning and Environment to the $30,000, the application will also seek to progressively increase the cap for these areas over 2018 and 2019.

Conclusion

This report has outlined the timeline for the review of the existing contributions plans for the Liverpool City Centre and Established Areas. This report presented a 2 stage approach for updating the CP. It is estimated that an interim approach could be completed by mid-2018 and comprehensive approach by mid-2019.

CONSIDERATIONS

Economic	Further develop a commercial centre that accommodates a variety of employment opportunities. Deliver and maintain a range of transport related infrastructure such as footpaths, bus shelters and bikeways. Provide efficient parking for the City Centre. Deliver a high quality local road system including provision and maintenance of infrastructure and management of traffic issues. Facilitate economic development.
Environment	Manage the environmental health of waterways. Protect, enhance and maintain areas of endangered ecological communities and high quality bushland as part of an attractive mix of land uses. Promote an integrated and user friendly public transport service. Support the delivery of a range of transport options.
Social	Provide cultural centres and activities for the enjoyment of the arts.
Civic Leadership	There are no civic leadership and governance considerations.
Legislative	Environmental Planning and Assessment Act 1979

ATTACHMENTS

Nil