‘Sardine City’ – court victory for Council

JIM FAGAN
Noosa Council has had a massive victory in the Planning and Environment Court against a developer claiming nearly $53 million dollars in town planning compensation.

In 1997 developer RV Thompson (Qld) Pty Ltd applied to develop 40 hectares of land at Settler’s Cove. This was to include 1287 units which led the then Mayor, Noel Playford, to describe the application as “Sardine City.” It was later reduced to 426 units and 33 house lots. On Monday, at the council’s general committee meeting, CEO Brett de Chastel reported how, following the adoption of Noosa’s 1997 Strategic Plan, a number of developers had taken court action claiming “injurious affection” that is, the value of their properties had been affected by changes to the Planning Scheme. “By 2001 the total value of these multiple claims amounted to $94 million. The Thompson claim was the largest. It was lodged in 2000 and was originally $34.62 million but this subsequently increased to $52.904 million.” Mr de Chastel said the former Noosa Council had fought the various compensation claims with significant success and by the time of amalgamation the Thompson claim was the only one outstanding. “It has been effectively running for 14 years making it one of the longest running and most significant (in dollar terms) Noosa Council has ever had.” He added that during the amalgamation years Sunshine Coast Council had continued to support the former Noosa Council’s position and had applied significant resources to the case. He said Judge Robin’s 222-page judgement was delivered last Thursday and found the applicant had not established its interest in the land was “injuriously affected” by the changes in the 1997 Strategic Plan. The Court accepted the factual evidence of the council’s experts and on legal points also found in the Council’s favour. “As a matter of curiosity the case lasted so long the judge had to come out of retirement to deliver his final judgement. It is up to RF Thompson whether they wish to appeal. An appeal can only be made on the grounds of an error in law.” Mr de Chastel said the case was followed by many other local governments as it will add to the body of case law about the impacts on Councils when Planning Schemes are changed. “This is a good result for Noosa Council. Subject to any further appeals in this case, it brings to a successful end any financial uncertainty from outstanding compensation claims.”