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MINUTES of the duly convened Ordinary Meeting of The Hills Shire Council held in the Council Chambers on 22 June 2021

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The Council decided to accept the bid, with an assumed value of 4.6% of the future development cost, subject to changes to reflect a minimum cash contribution of 2%, as well as other 'local' site-specific works to the value of a further 2.6%. While Landcom submitted the value of this revised bid was 3.29%, Council officials considered the revised bid to have a true public benefit contribution value of 2.5% of the development cost. The proposed works include the beautification of a 1000m2 public square adjacent to the station and traffic works along Brookhollow Avenue which include the relocation of the existing pedestrian crossing and curb to connect with the square and the removal of the existing edge of the island and replacement with pavement and the new sidewalk.

20/02/2020 The Department for Planning, Industry and Environment issued a Gateway Determination authorizing public exhibition of the planning proposal under a number of conditions. Monetary contribution calculated as 2% of the cost of future development (with an estimated value of USD 4 million); and. The contribution value of the offer corresponded to approx. $9.2 million (4.6% of future site development costs).

Based on this, council officials considered the value of works offered under the revised VPA (April 2021) to be approximately $1.2 million, resulting in an actual contribution value of 2.5% of the development costs, consisting of 2% cash contribution plus 0.5% in local infrastructure works being the plaza (beautification only) and selected local traffic works to Brookhollow Avenue. Compared to the second VPA offer (April 2021) presented to Councilors at the workshop on 1 June 2021, the current VPA offer scraps some of the previously proposed construction works (which were not believed to have any real public benefit and in turn increases the value of the cash contribution under the VPA from 2% to 2.5%, resulting in a total contribution value of 3% of the development costs.

ORDINARY MEETING OF COUNCIL 22 JUNE, 2021

According to its resolution dated November 10, 2020, the Council took the position that a contribution value of 4.6% would be acceptable. However, since this time, the Council has further considered a number of other VPAs and contribution plans related to commercial development within Norway. These provide a preliminary indication that a minimum value of 3% of the local infrastructure contribution will be required from commercial development in order to finance and provide the necessary local infrastructure to support growth.

Although the revised VPA offer (with a public benefit value of 3%) falls short of the 4.6% value set out in the Council Resolution of 10 November 2020, it is in line with recent comparable examples of infrastructure contributions linked to commercial development as detailed above . . In light of this, the current revised VPA offer (June 2021) with a contribution value of 3% of the development costs is considered to be fair, reasonable and justified.

IMPACTS Financial

Strategic Plan - Hills Future

RECOMMENDATION

Council accept (in-principle) Landcom’s revised VPA offer (June 2021) (Attachment 3)

ATTACHMENTS

Landcom Revised VPA Offer and Draft VPA (June 2021) (22 pages)

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PLANNING AGREEMENT

25-31 Brookhollow Avenue, Norwest

6\GQH\0HWUR$%1RI*HRUJH6WUHHW6\GQH\1HZ6RXWK:DOHV /DQGRZQHU. amp;RXQFLOLVWKHFRQVHQWDXWKRULW\SXUVXDQWWRWKHEt on Environmental Planning and Assessment 197916:$FWIRUWKH3ODQQLQJ3URSRVDO. amp; 7KH/DQGRZQHULVUHTXLUHGWRPDNH'HYHORSPHQW&RQWULEXWLRQVLQWKHQDWXUHRIPRQHWDU\. RUGVXVHGLQWKLV$JUHHPHQWDQGWKHUXOHVRILQWHUSUHWDWLRQWKDWDSSO\DUHVHWRXWDQG H[SODLQHGLQWKHGHILQLWLRQVDQGLQWHUSUHWDWLRQFODXVHDWWKHEDFNRIWHQH GHUWKH$FW. E WKLV$JUHHPHQWLVHQWHUHGLQWRDVUHTXLUHGE\WKHFRQGLWLRQLQDFFRUGDQFHZLWK FODXVH&RIWKH5HJXODWLRQ .. 7KH/DQGRZQHUPSXVWSD\WKULDUH0RQWLH WLQ 6FKHGXOHDQGDWWKHWLPHVVHWRXWLQD\PHQWRIWKH 0RQHWDU\&RQWULEXWLRQ PD\EHPDGHE\FKHTXHRUHOHFWURQLFEDQNWUDQVIHUWR. I am writing in respect of the planning proposal for the land at 25-31 Brookhollow Avenue, Norwest.

The planning proposal will enable the delivery of 2,255 jobs adjacent to Norwest Sydney Metro Station, and the intensification of this site for employment and ancillary uses and public space is generally consistent with the strategic planning framework. The Council agrees to the draft Voluntary Planning Agreement (attachment 1) subject to the following amendments being agreed by the applicant. I understand the other from Landcom and Sydney Metro, which was generally supported by council officers, was for a monetary contribution of 2% CIV with additional in-kind works in the form of significant public domain works already undertaken by Sydney Metro was undertaken as part of the station development.

Sydney Metro requested that a 10% share ($4m or 2.6% of CIV) of these works be considered in kind for the balance of the 4.6% CIV contribution. The Department understands that natural works provided by Landcom and Sydney Metro provide improved access across the Norwest Precinct as well as improved public domain outcomes. The proposed retention of the employment-focused B7 zone in the area in question will not generate the same amount of raised value, and therefore the capacity to pay contributions, as a mixed-use development.

I would like to highlight the strategic importance of this site, its potential to provide jobs, the activation of the station area and the new public domain, and encourage Council to work with Landcom and Sydney Metro to reach agreement on an appropriate rate contribution. We expect this matter to be resolved and the planning proposal submitted to the Department for Port Determination. This letter supersedes Landcom's letter to Hills Shire Council dated 1 April 2021 and contains a revised offer for Council consideration.

Ͳ financial contribution: 2.50% of the proposed costs for realizing the development, calculated in accordance with Article 25J of the 2000 Spatial Planning and Spatial Planning Regulation and indexed between the date of any building permit and the date of payment of the financial contribution . The monetary contribution will be paid in stages as the proposed development progresses and prior to the issuance of the statement of use for the stage. Landcom continues to believe that Sydney Metro's significant investment in infrastructure in the district should be recognized in the planning agreement.

In order to promote the planning proposal and given the particular circumstances of the site and the absence of detailed strategic planning for the area, the offer is being made as a one-off specific offer for this site. The willingness of Landcom and Sydney Metro to make this offer is not intended and should not be used as a precedent for the contributions that Sydney Metro will be prepared to offer in connection with other future voluntary planning agreements with the council in other parts of the local government area.

THE HILLS SHIRE COUNCIL SYDNEY METRO

The Works (Clause 7) Table

Works include: relocation of the existing pedestrian crossing and alignment of the berm with the plaza, and removal of the existing berm from the road island and replacement with new curbs and sidewalks.

Monetary Contributions

References

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