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Cash still on tap for projects (Gold Coast Bulletin) - Download pdf

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Gold Coast City Council is gaining a reputation as a timid council avoiding tough challenges in favour of risk aversion, warns the man who for many years led its town planning direction.

David Power, the former deputy mayor who was instrumental in the design and adoption of several whole-of-city plans, says it’s time overdue the council cut through the mountainous red tape processes to speed plans that can build the city’s economy faster, deliver overdue improved infrastructure and pave the way for greater job creation in the private sector.

“The city has pulled over into the slow lane and is waving city investment to go past to fast travelling Ipswich up north or inviting city building investment to do a U-turn and head south where Tweed district beckons with better cost efficiencies,” he said.

“The relationship between bureaucrats and the political wing of council is getting more and more like the British comedy ‘Yes Minister’ except that in our case it’s not so funny,” he says.

David Power has seen the running of the city literally from the inside out. He was a councillor for a record 16 years before going into private sector consulting.
“It made me wince to hear our current councillors at the last election promote a slowing of growth for the sake of votes. What they didn’t tell the public was that if growth slows as it has in this economic crisis then rates have to take up the massive shortfall to maintain revenue.

“In these difficult times to tell infrastructure investors such as developers, who create services and jobs, they can pack up and go to another city if they don’t like the way things are run is extraordinary.

“Some already have put valuable capital into other municipalities through sheer frustration dealing with Gold Coast City Council and with that go jobs elsewhere and the revenue to achieve the environmental protection objectives. ”

“Slowing growth has seen the council’s revenue fall sharply. It’s caused rates to go higher and ratepayers are now footing the bill for bad decisions. The global financial crisis can’t be blamed for everything that has happened here as excessive infrastructure charges create false values on properties that increase rates artificially as well.”

Mr Power said that he wondered if people would accept Energex charging them for two to four times the amount of electricity they used simply because Energex planned for them to use that amount. Council, he says, has been charging ratepayers who buy these properties Infrastructure charges that are based on much higher densities than actually achieved.

The former marathon tenure councillor says the development industry wants earnestly to work more cohesively with the city council for win/win outcomes to get building projects moving and thus get the city out of the impacts of the downturn faster.

“Developers are not the plunderers of the community as often portrayed by sections of the community. They collectively are responsible for at least $2.5 billion on average per year capital being invested into the local community and provider of many thousands of jobs through planning and construction.
“The real story is that not a single person would be living in this city if not for the development industry creating for the community the parks and other private sector-led infrastructure and environmental assets we take for granted. Most are paid for through development or donated by development.”

A prominent Gold Coast town planner says Tweed Heads is being looked upon more favourably as the place to do business by property developers losing patience with their local council.

Greg Short, president of Sustainable Development Gold Coast Inc., says Gold Cost City Council should get an independent study done on the possible damage to the tourist city’s economy by the impact of its controversial Priority Infrastructure Projects Plan charges on new development.

He says such a study could very likely confirm that the city has suffered immeasurable harm through countless numbers of building projects pulled out of the city and taken to Tweed Heads, Ipswich and other places where the investment and subsequent building industry job creation is more welcomed with open arms.
Mr Short says SDGC I recently commissioned an independent study of infrastructure charges across five local government areas, including Tweed Heads, and the Brisbane researchers found that Gold Coast City was charging up to 200 per cent higher than even Brisbane City Council for comparable projects in land plot size and type.

“The council is considering a 12-month review of its policy, finally recognising that its decisions are hurting the local economy but may simply blame  the pain on the world financial crisis when in fact our industry has said as far back as 2007 when the Priority Infrastructure Plan charges were introduced that the way they were calculated was unfair.

“The proof of our argument was delivered in a damning 70-page independent study and report done by a respected property research company.
“Apart from building projects taken into the Tweed and even further south as well as to the burgeoning city of Ipswich west of Brisbane, many developers have put economy building jobs on hold, some are in court fighting the council and some are stuck for many months within the council’s planning departments where inertia seems to rule,” he said.

The impact of the global financial crisis has made a difficult situation worse, says Mr Short. The situation is so serious that his not-for-profit Sustainable Development professional planning body has organised an historic full-day regional development conference called Turning Point 2010 at the Marriott Resort Hotel in Surfers Paradise on August 27.

Tweed Economic Development Corporation CEO Tom Senti is taking a team of eight people to the conference where Peter Mitchell, a prominent Murwillumbah business park estate developer is one of the front line speakers delivering a case study segment.

Mr Short says having diverse sectors of the development industry coming together under the one roof at the one time is historic in itself as nothing like this over a full-day has been seen on the Gold Coast by local people since the early 1990s Keating recession era.

“We have given a speaking opportunity to the council and personally invited every one of their councilors to attend as this is not a council bashing exercise but a forum for serious discussion on issues that are holding the city back .The city needs to  benefit more now than ever in job creation projects and to build the massive housing infrastructure needed to cope with the population boom.

“The Gold Coast alone must provide a further 143,000 dwellings of all types over the next 20 years to meet the State Government’s growth targets.  That will require an average yearly amount of $3 billion in working capital to build that number of places for people to live but the pain of the credit crisis lingers on.”
He says access to money for building projects is a serious issue with no immediate end in sight to the problem.

A recent comment by a spokesman for NAB suggests that the banks are not rushing to start lending money for ‘some time.’

Urban planning students studying at Bond University have been thrown the welcome mat to attend a major regional development industry conference in Surfers Paradise next week to ‘rub shoulders’ with industry figures.

Greg Short, president of not-for-profit Sustainable Development Gold Coast Inc. says it’s a great opportunity for young people studying to enter the professional planning side of development to get a first-hand feel on critical issues affecting the city’s future.

“Just as work experience allows young people to discover the realities of working in a particular sector of business, attending the Turning Point 2010 conference at the Marriott Resort Hotel on August 27 gives these students an equally valuable insight to such realities,” he said.

His organisation, which consists of professionals such as town planners, valuers, architects, engineers, surveyors, property researchers and others, has organised the conference with already more than 200 industry people confirmed for the day-long event.

Mr Short says universities are places where students learn and develop skills that not only encompass best practice as it now exists or is accepted as industry standard but to question and challenge it.

“Lifestyle and city building is central to the aspirations of the Gold Coast community at large ands today’s students could one day be in leadership positions of considerable influence but most certainly as part of the broad debate about the future,” he said.

“The opportunity for Bond urban planning students to get a first-hand insight on macro level issues at this local event is a rare opportunity that they’ve welcomed.”
Bond University student Hannah Silvasich, a Bachelor of Property and Sustainable Development, says it’s extremely valuable for people like her studying and moving into the workforce proper to attend a major conference of this type.

“It puts planning students closer to the coalface of everyday issues affecting the workplace to they are heading,” she said.

“It’s always an advantage to hear from very experienced people, leaders in their calling who can talk to a big audience and see that knowledge being shared by so many people. Just as work experience itself is very valuable, being able to rub shoulders with people active in the industry is a great opportunity for students.
“Who knows? It could lead to a fulltime job with the chance to meet the professionals who are helping to shape the future of our great city.”

Mr Short says the solid roll-up in times of tight market conditions and serious fall-off in project work is an encouraging sign.

“It demonstrates that people want answers to problems and want to examine better ways to get the region back to full productivity.  The global financial crisis can’t be blamed entirely for the economic downturn but it certainly made things much worse and people in the property industry are looking for signs of renewed confidence.”

“That’s what Turning Point 2010 hopes to achieve by developing an action plan from resolutions carried at the conference that can go to our city leaders and the government for consideration.”

The man who’s town planning firm has a 40-year history on the Gold Coast says it’s an historic event because it’s the first time that planning professionals in the development industry have stepped forward to promote leadership on issues that are vital to the city’s prosperity.

Prominent town planner David Ransom says an urgent independent study is needed to determine the economic impact controversial council charges are having on the property industry.

He says despite the recently announced concession by Gold Coast City Council that it would give some temporary relief in the way it assesses upfront charges, the council should go further and get a full impact study done by an independent source.

“Job creation building projects have suffered badly over the controversial infrastructure charges made much worse by the economic downturn.”

The Gold Coast director of Humpreys Reynolds Perkins says the property development industry has been adversely affected through an ill conceived Priority Projects Plan system which is leading to the ‘mothballing’ of job creating projects.

Making it worse, he said, an independent multi-municipal research study commissioned by Sustainable Development Gold Coast Inc. through a specialist Brisbane-based firm revealed that the Gold Coast council was slugging developers here up to 200 per cent higher fees   than in Brisbane city for matching criteria construction projects.

Mr Ransom, a board member of Sustainable Development Gold Coast Inc. says that had such a study been done first the council might have taken a completely different approach to the way it structured its charges.

“Developers don’t mind contributing to infrastructure – ie transport, water, sewer and parks  but there is a limit to what they can afford and the original system is doing more harm than good.  “The industry realises the responsibilities of local government to the community and local developers want to work more productively with council but in a way that is fair and forward thinking.”

Mr Ransom is one of 16 speakers at the Turning Point 2010 development industry conference at the Marriott Resort Hotel Surfers Paradise on August 27 where he plans to give stark evidence of how current planning controls are hurting the property industry. Suggest moving this to the end
He concedes that a recent decision to replace ‘planned’ infrastructure charges with those based on what developers actually propose on a site is of great interest to the development industry. Council has indicated that it proposes to implement this change through a ‘Temporary Local Planning Instrument’ which will have a life of 12 months.

“‘While the development industry welcomes this decision the details of its implementation, yet to be announced, will determine if it is effective in stimulating development activity or not.”

In his conference address he proposes to provide evidence of a range of actual and hypothetical retail, commercial and industrial developments to examine if the recently announced changes could restore economic viability to future projects.

Gold Coast property industry figure Geoff Burchill  has urged developers to work more closely with banks in a bid to avoid funding shortfalls.

Mr Burchill said meeting projected growth forecasts was a long-term process that carried severe impacts through boom-bust cycles unless property developers managed them better. “Otherwise  it’s harder to avoid the excesses of easy money in boom times ending with the harsh slug  of working capital not being available for the long lead times required in the development process,” said Burchill.

It’s time that financial institutions were invited to work more closely and much earlier in any significant property planning strategy to avoid some of the past mistakes about how money is used, he says.  

The man who did the original master plan for Australia’s first integrated resort community, Sanctuary Cove and was involved in mega projects such as creation of Robina and Helensvale master plans and Hope Island Resort, fears that lessons of the past are often noted but not always then considered in future project strategies where the money must be available.

The entrepreneurial former Gold Coast consulting engineer, urban planner and property industry author argues that it’s critically important for planning professionals to understand the harsh realities for development business throughout the cycles that inevitably turn short booms into long downturns.

He says though, it’s just as important for those working in local councils to take boom/bust lessons from the past to avoid the bad impacts they can bring on productivity and viability. This knowledge is essential for the property development beyond 2010 to help underwrite the local economy.

“In the 1990s, our industry went out of great entrepreneurial ‘room to move’ creativity into the red tape phase we're stuck in today.”

“Bureaucrats now dictate through their ‘perfect world ‘ legislation in a way that stifles visionary skills of highly talented people in this city.”

Burchill is one of 16 speakers at the Turning Point 2010 development industry conference at the Surfers Paradise Marriott Resort Hotel on August 27.

He says he is amazed at how so many smart people in property investment and development allow themselves to be thrashed so badly time and time again when some study of past mistakes could teach what can be done to reduce the risks.

“Property cycles are about money being used badly.”

Prominent Tweed District investor Peter Mitchell has turned his sights on Gold Coast developers, telling them they need to think ‘green’ and head south of the border.

Mr Mitchell has accepted an invitation to be a front running speaker at a major regional economic initiative – the upcoming ‘Turning Point 2010’ conference on the Gold Coast.

He will join some of Australia’s most recognised and respected authorities in sustainable development  at the Surfers Paradise Marriott Resort Hotel on August 27 where he will deliver a case study ‘warts and all’ address titled ‘Finding positives in a capital calamity.’

Mr Mitchell is the driving force behind the $350 million Industry Central Business Park at Murwillumbah which industry observers believe will rival the longer established and government supported Yatala Enterprise at the northern end of the Gold Coast.

He is one of four key speakers in the conference opening session titled ‘Financing the Future’ in which he will give a real life account of  facing, and rising above,  huge risks when mounting a major development investment in tough times.

His talk will also be like a beacon in dark times for business and job creation opportunities in the Tweed region. Mr Mitchell hails from Bangalow and is a staunch believer in the Tweed region’s move towards a more sustainable future as promoted by the Tweed Economic Development Corporation.

The fast growing success of the ambitious Industry Central business park at Murwillumbah in tough times attracted the attention of conference organisers keen to see industry south of the seamless border get a voice in front of a major regional audience with delegates coming from as far away as Sunshine Coast, Ipswich and Brisbane.

“It will allow opportunity to include the Tweed area in the big play talk of future planning and the need for closer and more progressive cooperation between local government and private sector investment in local communities,” he said.

Tweed Economic Development Corporation is hosting a team of business people to the Turning Point 2010 conference.
Mr Mitchell says he is impressed with the not-for-profit Sustainable Development Gold Coast Inc’s policies which don’t represent any individual developer, project financier or land owner but more so the interests of the broader community by promoting a greener type economic investment in the region.  

“SDGCI obviously recognises the fact that it is only through progressive economic investment – both residentially and commercially – that jobs can be created and safeguarded while building a stronger and more vital local economy. I hope Tweed district people working in the property sector get on board the Turning Point 2010 initiative by attending the full-day conference where details can be found on the website www.sdgci.com.au

South-east Queensland’s $12 billion a year development industry is coming together as a united force for the first time in 15 years on the Gold Coast to find answers on how it can achieve the region’s designated massive growth targets.

The $12 billion is the estimated amount of capital required to be spent by the private sector development industry per year to build the 730,000 dwellings averaged over 22 years to meet the Bligh Government’s growth planning, says prominent town planner Greg Short.

This includes an estimated $3 billion needed per year for the Gold Coast building industry.

He says it’s an enormous task given conflicting state and local government strategies on handling almost rampant population growth.

“The estimated $12b. input for housing includes the added cost of new era building for services, shopping centres and employment for added population,” says Mr Short, managing director of 40 year-old firm Bennett & Bennett, and president of professional planners body Sustainable Development Gold Coast Inc. SDGCI involves more than 12 sectors of the property development industry.

He’s announcing that Gold Coast city building professionals are spearheading an inquiry into issues that are frustrating the whole region’s productivity and economic viability through the industry’s work to drive needed changes.

“There is considerable uncertainty about a financial system that will adequately service this massive challenge and the constraints to efficiency from ‘out of touch’ government procedures are high on the day-long agenda being covered by a range of highly respected industry experts,” he said.

 “The Turning Point 2010 – Moving Forward Faster regional conference at the Marriott Resort Surfers Paradise on August 27 is the first development industry conference of this kind on the Gold Coast since the early 1990’s downturn to focus on outcomes to deal with today’s road blocks to progress.    

The not-for-profit Sustainable Development Gold Coast Inc convening the event, has the strong support of the Queensland Master Builders Association, the REIQ and the Property Council of Australia’s regional chairman Peter Trathen in recognising the importance of the timing for this almost historic gathering.

Mr Short says the government growth forecast is for the development industry to invest in producing about 730,000 new houses in the south-east quarter – at least 130,000 of them in the Gold Coast – and this requires a strong stream of capital to be made available to the building industry.

However, the complexity of urban development also encompasses the need to provide for commercial expansion in job creation and having access to affordable capital.

Some of Australia’s leading experts in urban planning, property research and construction will meet in Surfers Paradise soon to get action on common problems stalling economic investment to meet spiraling Gold Coast growth demands.

The locally-based professional planning body Sustainable Development Gold Coast Inc is hosting the all-day industry summit type gathering to tackle the brakes on productivity and project viability in Australia’s fastest growing region.

The Property Council of Australia, the Queensland Master Builders Association and the Queensland Real Estate Institute are supporting August 27 event at the Marriott Surfers Paradise Resort at a critical time in the region’s growth planning.

Summit chairman, prominent town planner Greg Short, says the ‘Turning Point 2010 – Moving Forward Faster initiative’ is the first full-day collective industry event of its kind held on the Gold Coast  since 1992.

“The last time was in the throes of the Keating recession when we had such a call to arms representing all interests in urban planning, property development and the marketing of real estate but this time the issues are even more serious,” he said.

“This time the industry and all those relying on it for jobs and security of investment are facing challenges the likes of which we have never seen before,” he said.

“On one hand we have the State Government setting targets for the private sector to provide more than 130,000 new dwellings on the Gold Coast alone within 20 years and on the other hand we have our local government putting up roadblocks everywhere to ensure we can’t meet those targets,” he said.

“To make matters worse the city’s planning and building industry needs access to at least $3.2 billion a year in working capital to achieve those targets and we want to know when and how the banks will play their part. Nothing can be done without the money and it’s a very urgent matter.”

Mr Short says the $3.2 billion in working capital is based on a minimum $250,000 per developed lot but it’s a conservative figure and will almost certainly end up higher than that.  

“The excessive new development infrastructure charges set by Gold Coast City Council – up to 200 per cent higher than anywhere else – is just one of the savage impediments to population sustainability.

 “It’s just one of the issues the industry’s call to arms on August 27 will address seeking achievable outcomes. It’s time for some changes – real action - that’s what it’s about.”

MASSIVE infrastructure charges have led to a $120 million retail development at Nerang being shelved.

Ticor Developments has postponed the project, on land at Station Street adjoining Centro Nerang, after facing an  infrastructure bill of $26 million during an economic downturn.

This is more than the $20.75 million Ticor paid for the 11.63ha site in April, 2007.

Ticor Properties director Tim Atkins said it was hoped negotiations would proceed with the Gold Coast City Council on the charges, which comprised more than 12 per cent of the project.

‘‘Making savings of that nature is significant,’’ he said.

He said the council had been helpful and considerate during the application process, but should weigh up the cost of infrastructure charges against providing three or four years of construction jobs followed by long term, full-time retail employment.

Ticor had agreed with Centro Nerang to develop the centre, which Centro would then manage.

The plan calls for a shopping and leisure destination including eight cinemas, a  food court and office precinct. 

Area councillor Peter Young remained optimistic the project would proceed.

He confirmed total infrastructure charges were just over $26 million, including a State Government share of $10.33 million. 

He said Ticor had lodged a notice of appeal on several matters, including infrastructure charges. 

Gaven MP Alex Douglas suggested a 25 per cent discount on infrastructure charges could be returned sevenfold through the involvement of small business.

Gold Coast City Council appears to be working hard to chase development business investment away from its own municipality and into the welcome arms of an unlikely rival – Ipswich.
The ‘on the move’ western corridor heritage rich city just happens to hold 43 per cent of South-East Queensland’s available industrial land sites and the welcome mat is out for developers – Gold Coast based ones at that.
Coast businessman Craig Gore had something when he said last year he’d be better off taking his development investment money to Ipswich rather than continuing to do battle with Gold Coast city bureaucrats.
He didn’t say they were greedy, uncaring or out of touch, he only had to let them give everyone in the development industry that impression.
New independent research commissioned by peak industry body Sustainable Development Gold Coast Inc. reveals that infrastructure charges imposed on new development here are up to 200 per cent on average higher than Brisbane, Logan City, Ipswich City, Tweed Heads and Townsville.
SDGCI president, town planner Greg Short, says Brisbane-based PLACE Design Group research compiled in a 70-page fact-filled comparison of local government new infrastructure charges shows some alarming differences.
“In just one example of a hard hitting highly credible study – this one about shopping centre site investment - it demonstrated that a comparable 5000 sqm neighbourhood shopping centre on a 15,000 sqm site within the Coomera Town Centre would incur a Gold Coast city infrastructure charge of $7.1 million,” he said.
“Note this would be a relatively small development, not a major one. The same development on comparable land at Rosewood within Ipswich City would only incur upfront charges of $389,000 on average. So it’s not hard for a development company to see its best return on investment would come from going to the heavily populated Ipswich area to provide closer convenience services to that part of the city.
“It seems incredible that Gold Coast City Council has to milk new development so viciously in contrast to Brisbane and Ipswich when the city has such a huge concentrated high value rating base from the famous property market for its tourism industry and upmarket housing estates on the beach, golf, and waterfronts.”
Mr Short said the Gold Coast Mayor Ron Clark told him after the Gold Coast Rescue 09 forum that his people had done a cost comparison of infrastructure charges with Brisbane City and they were found to be similar.
“The mayor produced a two-page piece of paper for such research which someone must have done with their minds already made up because the independent research done by Brisbane-based PLACE Design Group paints a more comprehensive and authoritative picture of the Gold Coast city’s aggressive charging policy.
“Unless the council reviews its policy on infrastructure charges at such a difficult time in the economy at least, the mayor, the elected council and the city’s bureaucrats should feel guilty of over-charging and promoting development investment opportunities away from the Gold Coast.”
Mr Short said the 70-page dossier was ‘very expensive’ to commission and was an essential investment by SDGCI to produce factual evidence that the council here has got it wrong.
“Brisbane city, for example, shows the folly of the Gold Coast City’s supposed research: the equivalent new shopping centre development at Rochedale would incur infrastructure charges of $3.4 million whereas the subsidised area of Woolloongabba it is $2.9 million. How is that “similar” to Coomera’s $7.1 million developer contribution on a comparable site?”
Mr Short said the comparison study was done to a set formula that allowed real site comparisons in five different local authority regions and entailed detailed sampling for development of industrial land, office blocks, shopping centres, sub-divisions, apartments, duplexes and single dwelling housing.
“This is real evidence the council cannot, and should not, ignore if it wants to encourage sustainable development of the city,” he said.

It’s time the Gold Coast property development industry stops being so defensive about itself and uses real vision to get back on the front foot.

It must remodel its image and stand up to be counted for its rightful place as a key economic driver of the regional economy or forever be a slave to its detractors.

Construction, the region’s second largest employer industry here, could not exist without a major business investor commonly known and often talked down as just a greedy or uncaring developer.

Speaking at a recent forum held by the Planning Institute of Australia, locally-based internationally recognised master planner Geoff Burchill expressed his dismay at how the city’s development industry has gone on the back foot. He was scathing in the way new era bureaucrats ‘run the show’ and often treats major industry investors with scant respect.

Burchill was just as forthright about the Gold Coast when he was a keynote speaker at the 2005 FIABCI international real estate congress in Kuala Lumpur, not mincing his words after a near lifetime in innovative broadacre property development. The stunning Sanctuary Cove integrated resort stands among his mega early planning projects.

The PIA’s well attended forum on planning in an era of global uncertainty allowed Burchill to describe how the Gold Coast got itself out of past boom and bust periods, but closest to his heart is his lament over the way the development industry has allowed perception of the industry to be so derided.

Rather than  be regarded as a major contributor to the regional economy and the source of many thousands of jobs, the image of the development industry within government and the public is one of perceived greed, incompetence and disconnection from the public interest. This is the ill conceived mantra of the left-wing Green lobby that in itself contributes nothing but obstruction.

Yet like all sectors of enterprise – and in government itself – there will be exceptions to what is best for all but overall, the Gold Coast development industry needs to get up from its back bench position and go on the front foot attack to demonstrate its value to the local economy. The community is hoodwinked. Bureaucrats and politicians are rarely in the mood for genuine innovation.  Real leadership must be returned to the forces that create, not just those that dictate.

Burchill said outside the forum that how the term developer is interpreted creates the greatest myth perpetrated against the industry. 

“The construction industry, the city’s second largest employer, would not exist without a developer. The much maligned developer is really a substantial business investor in the city’s future and the source that creates services that government cannot provide,” he said.

The iconic 474-hectare Sanctuary Cove, Australia’s first and largest integrated residential resort evolved from a single entrepreneur’s passion. A ‘developer’ called Mike Gore turned up at Burchill’s office one day in the mid 1980s with an idea in his head and thereafter a majestic centrepiece of development innovation resulted over ensuing years.

People need to be reminded that governments don’t create wealth in the community, they tax job creation industries heavily and are meant to create the environment to allow business to generate jobs.

“Unfortunately in these times we see overkill impediments from government sectors making it harder for private enterprise to battle red tape and even harder to profitably employ people,” he said.

“When people think of development they tend to think of developers as simply someone that comes in, knocks down the trees, scares off the koalas, gets as much profit as possible from every inch of ground, banks the money and disappears without regard for the community as a whole. This knee-jerk perception needs to be corrected.”

Locally-based Sustainable Development Gold Coast Inc, a body of widely represented development industry planning and associated professionals,  is staging a high level seminar before the new financial year to address many industry concerns including the very identity of the industry.

Burchill made a good podium point to the Planning Institute about local government attitude when he said, “This (negative perception) has clearly influenced people working in council. Only in the last few years have I ever had senior council officers say to me - “if I approve this, you’ll make a fortune” -- as if that was a factor for deciding approvals.

“Sadly,” Burchill lamented to his audience, many from local government ranks, “this seems to have become an attitude in this council that’s built up the stresses in dealing with new development infrastructure.

He said there are issues for planners and associated professionals to recognise about the nature of development that will be needed to successfully service the State Government’s SEQ2031 targets. 

“There will be many differences to what’s been done before and communities will continue to oppose many projects,” he said. “Planning schemes won’t find it easy to translate the intent of the Regional Plan into the free room to move that is needed for many potential developments.

“New kinds of informed private/public sector cooperative working must happen in a constructive fashion to allow this hurdle to be cleared.”

Respected Bundall based town planner Greg Short has Gold Coast city hall bureaucrats in his sights when he fires criticism at the city council for imposing ‘outlandish’ charges in new projects at a time of economic adversity.

He calls it bad policy at a bad time and wants to keep pressure on Gold Coast City Council (GCCC) until it back flips on hitting homebuyers and businesses where it hurts.

Over the past month the collective body of professional development consultants, Sustainable Development Gold Coast Inc (SDGCI), has called on the council to review its fee policy for development contributions.

As the organization’s recently elected new president, he may well have a supporter in Mayor Ron Clarke.

Since SDGCI launched an offensive against the impact of the changes in tough economic times, the mayor has taken the side by suggesting council could discount its Priority Infrastructure Plan (PIP) by up to 25 percent to reduce overheads in new projects where the extra cost gets passed on to end users.

Mr Short believes it’s a case of bureaucracy gone mad at city hall when, according to one building contractor, a $1.3 million project was hit by a council fee of $350,000, thus making the development non-feasible.

Council introduced the PIP charges in 2007, but it was only in the latter part of the year that the high charges hurt the industry badly and its now calling out for sensible consideration.

Mr Short said common sense must rule at a time like this.

“In the supply of new houses, for example, it is forcing up the price if a typical three-bedroom property, generally from $35,000 to $40,000 per dwelling. But it will be much dearer than that in certain areas such as Hope Island,” he said.

“Floor-space rents will soar and the prices on all new commercial stock will be anything but competitive”.

“What used to be only headwork’s charges for water and sewerage connection have become charges for transport, stormwater”.

GOLD COAST Mayor Ron Clarke will today ask his colleagues to back a bold plan to discount infrastructure charges by up to 25 per cent to put a bait on the economic slide.

Cr Clarke said he wanted to discount infrastructure charges by 10 to 25 per cent to give developers an incentive to start building projects this year.

The discounts could translate into the council losing up to $62 million out of its $250 million infrastructure charges revenue this year, but Cr Clarke said it was a measure required to save Doe of the Gold Coast's most important industries.

"This is a ready serious downturn and we need to try to stop it happening on the Gold Coast if we can." he said.

"We’d look to be giving discounts of 10 to 25 per cent on infrastructure charges for buildings that will commence this year.

"Hopefully we'd only need to do it for the next 12 months." Cr Clarke said the council could take loans to cover the lost revenue which is traditionally used for new capital works projects. Cr Clarke also wants infrastructure charges capped at no more than 5 per cent of the project cost.

"The reason is because I was told by a building contractor that a $1.2 million project had $350,000 or infrastructure charges which put it out of all reasonable economic feasibility” he said.

“It shouldn't be any more than 5 per cent of the project cost in my opinion.

The idea has failed to gamer support from city finance Chief Eddy Sarroff who said 'oh my God, oh dear' when told it.

"If he is putting that up, it doesn't ban my support I'll tell you that right now." he said.

Cr Sarroff said he preferred to stimulate the economy by fast tracking infrastructure projects to support development rather than slashing fees.

Cr Clarke also wanted monthly meetings between the council and key development figures. He said a 'developer's forum' would help open communication lines and discuss problems, hold-ups and ways to fast-track projects.

“It will allow developers to be more informed and so we can be more on the front foot about how to get these damn things (applications) through," he said.

The resolutions are expected to be put to the full council meeting today.

A Campaign to cut the cost of building homes hinges on rate payers or the State Government subsiding infrastructure charges.

The city council is trying to keep up with the insatiable demand for infrastructure, especially in the northern growth corridor, but it has been warned by the Government it is not charging developers enough.

The council’s sustainable city future committee chairman, Peter Young, said that the State Government was reviewing the level of priority infrastructure fees and was expected to reveal its findings at the end of the year or early next year.

If it recommends lowering development fees, either ratepayers or the State Government will have to subsidise the difference, unless construction costs fall in the meantime, he said.

The construction industry is against infrastructure charges, and argues residents and businesses eventually paid through rates.

Cr Young said the courts has held the charges were appropriate in several cases brought by developers against the council.

However, Sustainable Development Gold Coast has commissioned independent research into the fees because it fears that will harm the Coast’s economy.

The body’s president Greg Short says they add between $35,00 to $40,000 to the cost of building a home on a Greenfield site.

Cr Young said around a third of the costs were for State Government infrastructure, such as roads.

The charges imposed for a shopping centre built at Nerang last September totalled $21 million, of which $7 Million went to the State Government, he said.

The charges are deemed necessary to meet the council cost of providing - drainage and water quality measures - roads, cycleways and pedestrian paths
- community infrastructure, including public parks and land for local community purposes such as libraries and community halls. 

Fees inflate the price of new homes

Council levies have been blamed for adding as much as $40,000 to the cost of building a home on the Gold Coast.

Despite plummeting prices for existing dwellings, developers of estates have had little choice but to pass on the infrastructure charges to new-home buyers.

But while it sends out the bills, the Gold Coast City Council is not to blame -  the State Government has forced it to change the levies.

Peter Barnes reports.