SW Comment: Developments such as Former Port Phillip Woollen Mill Site impose enormous strain on the community.  In Victoria the developer contributions have been minimal but NSW imposed much more realistic developer contributions (sometimes up to $34,000 per bedroom) reflecting the community sentiment that if the developer makes profit from building huge developments, the individual ratepayers in those municipalities should not pick up the tab for the cost of new or improved infrastructure and commuinity service requirements. Recent changes in NSW impose a limit of $20,000 per dwelling.  If translated to the Former Port Phillip Woollen Mill Site this would mean $8.25 million would be paid by the developer to Hobsons Bay City Council.

See NSW Developer contribution minute from City of Sydney Minutes June 2010

http://www.cityofsydney.nsw.gov.au/council/documents/meetings/2010/Council/210610/100621_COUNCIL_ITEM31.pdf

“The State Government has announced major changes to the section 94 development contributions framework that will slash development contributions to all councils. The changes, announced without any consultation with local government as part of the State Budget, will have an especially devastating effect in our urban renewal areas such as Green Square.

The changes are:

1. •Section 94 development contributions levies for residential properties under s94 are now capped at a maximum of $20,000 per dwelling or lot. This cap came into immediate effect on Monday, 7 June 2010 and overrides any previous approvals to exceed the $20,000 threshold.
   

2. •A restriction on the types of infrastructure that can be funded via s94 levies to ‘essential infrastructure’.
   

Council will be forced to fund any shortfalls in infrastructure funding from other revenue sources such as borrowings and/or increases in general rates; or through a ‘Special Variation’ to rates. We can only apply a ‘Special Variation’ to cover any shortfall if we receive permission from the Independent Pricing and Regulatory Tribunal (IPART).

The Government has not yet defined ‘essential infrastructure’. I share the concerns of the Local Government and Shires’ Associations that the Government could restrict levies to the funding of land acquisition (for open space and community facilities), roads, stormwater and transport facilities. If these changes go ahead, the City will be prevented from collecting local contributions to fund recreational, civic or community facilities, which will instead need to be funded from other revenue sources.....