local structure plan - planning

8NS08AF-201609231544032.3 Land Budget
3.3 Road Access 3.4 Public Transport
4. OPEN SPACE
_.:, 6. ACTIVITY CENTRES
6.1 Commercial Facilities
7. URBAN DESIGN
7.1 Urban Design Themes 7.2 Subdivision Design 7.3 Activity Centres 7.4 Major Roads 7.5 Open Space 7.6 Heritage Buildings and Sites 7.7 SECY Easements 7.8 Archaelogical Sites
8. EMPLOYMENT
.. , 9 STAGING
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LIST OF FIGURES
Main Road Frontage Treatments
Main Open Space Network
Options for Heritage Buildings in Subdivision Design Screening of SECY Transmission Lines Staging Plan
LOCAL STRUCTURE PLAN
LIST OF TABLES
APPENDICES
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3.
Council Policy for Community Activity Centres .. Heritage Buildings and Sites Infrastructure Funding Policy
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1. INTRODUCTION
The Plenty Valley Strategic Plan identifies South Morang as one of two major urban components of the Plenty Valley Growth Area (the other is the Mernda area to the north).
In 1989 and 1990 a number of major Planning Scheme Amendments rezoned this area to facilitate extensive urban development and protect areas of environmental significance.
In line with current strategic planning principles development of this area must be generally in accordance with a Local Structure Plan which has been incorporated into the Planning Scheme.
This document along with an accompanying plan comprise the Local Structure Plan.
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The final step will involve approval of a planning permit for subdivision. At this stage, develope1 s will be required to refine the Local Structure Plan to a micro-planning level, addressing matters such as local street design, lot sizes and layout, open space boundaries etc. In addition, for the smaller holdings, developers will be required to demonstrate how the proposed subdivision will integrate with future development on surrounding land.
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2. THE PLAN
A reduced copy of the Local Structure Plan is located at the end of this report. (Refer Figure JO).
2.1 Goals
The vision for the area is that the Plan promotes the development of a cohesive urban community, reflecting the sense of containment provided by the surrounding hills, and fostering a sense of place with a unique character and identity.
To this end, the goals of the Plan are to.-
• Balance social, economic, environmental and community interests.
• Facilitate the creation of an interesting and diverse urban environment.
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Accommodate future development at a rate related to demand and the ability to service the area .
Facilitate the creation of a sense of community identity and provide opportunities for the phy.,inl and social fulfilment of future residents.
Provide a flexible structure that can readily adapt to changes in people's lifestyle and aspirations.
• Ensure that development ts energy efficient m terms of subdivision/housing design and transportation.
• Provide a framework for the co-ordinated and timely provision of infrastructure.
• Provide a structure which allmvs equitable accessibility of all residents to public facilities, services and open space.
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In summary, the Local Structure Plan provides for:-
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• A modified grid main road network, utilising existing road reservations where possible.
• Residential areas to accommodate an ultimate population of approximately
20,000 - 25,000 people, utilising a range of residential densities and lot sizes.
• The development of two distinct precincts - a larger western precinct and a smaller eastern precinct divided by Plenty Road .
• An employment area comprising 40 hectares.
• Significant parts of the surrounding Quarry Hills area being utilised as district
passive open space.
• Seven neighbourhood parks to both accommodate the major recreational facilities
and preserve existing trees.
Existing watercourses and SECY easements providing linkages between the main open space areas.
An hierarchy of activity centres incorporating retail, education and community facilities and services serving a range of catchment areas
Land Budget
The Plan area has a gross land area of approximately 810 hectares Some 700 hectares
are available for development after deductions are made for areas already developed or
which are not serviceable, existing major roads, and reservations for railway and water supply purposes.
Table I provides the land budget for the Plan area. The net residential figure is derived from the developable land figure deducting roads, open space and activity centres shown on the Plan, secondary school sites and sites for other facilities servmg catchments beyond the local neighbourhood.
As the Plan area is essentially divided into two precincts (viz an eastern and a western
precinct) which do not easily relate to each other because of their separation by Plenty Road, Tables 2 and 3 provide a land budget breakdown for each precinct.
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TABLE 1 - LAND BUDGET FOR LSP AREA
(AREAS ARE EXPRESSED IN llECT ARES)
GROSS AREA
Undevelopable !and
DEVELOPABLE AREA
Main Roads
TABLE 2 - LAND BUDGET FOR WESTERN
PRECINCT
GROSS AREA
Undevelopable land
DEVELOPABLE AREA . .
Main Roads
TABLE 3 - LAND BUDGET FOR EASTERN
PRECINCT
GROSS AREA . . ....
Soutl1 Morang Local Structure Plan
The Local Structure Plan shows the main road network for the Plan area. The road hierarchy is essentially three tier, based on the "Victorian Code for Residential Development (Subdivisions and Single Dwellings), April 1992" (Vic Code).
The network consists of:-
• Arterial Roads which typically form the main grid of traffic routes, are connective and form long continuous routes.
• Sub-Arterial Roads which provide a finer grain of traffic routes within the area. They have more frequent access connection to lower level roads and typically form the bas;s for a local bus route.
• Collector Roads which collect traffic from the access streets. A reasonable level of residential amenity and safety is to be maintained by restricting traffic volumes and vehicle speeds.
The arterial grid is spaced at about 1.6 kilometres with the other traffic routes at about 800 metres. The grid layout ensures that most residential areas are within 400 metres of a public transport route.
The skeleton or structure of the main road network has largely emerged as a result of fine-tuning the Plenty Valley Strategic Plan and Transport Strategy and utilising the existing roads to achieve a uniform grid design.
Figure I shows the main road network for the Plan area, while Figure 2 indicates anticipated traftic volumes.
3.2 Road Design Standards
Table 4 below sets out the design standards for main roads. It should be noted that the local street design is dealt with in Vic Code and shall be designed generally in accordance with that Code. Figure 3 provides the road cross-sections
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TABLE 4 - DESIGN STANDARDS FOR 1\ilAIN ROADS
CATEGORY TRAFFIC VOLUME (VPD)
North South 2 5000 - I 1000
COLLECTOR ROADS {2}
Collector 2 4500 - 6000
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I. Includes a 15111 wide median for a future public transport corridor.
2. PaYcmcnl \\idlh includes ,He.is for indented parking.
]. Pa,·cmcnt is divided b- a pipclr:ick which is no! included in the resernlion \\idth.
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South Morang Local Structure Plan
High speed and volumes as characterised by the arterial and sub-arterial roads have been shown to have a greater propensity for accidents relating to parked vehicles and access from abutting properties.
To avoid this, no on-pavement parking or abutting vehicular access will be permitted on these roads. Figure 4 provides examples of the types of frontage treatments which will be permitted. In essence these include: contiguous service roads; parallel access places; and rear lanes. It should be noted that abutting access will be permitted on collector roads.
This list of treatments are not meant to be exhaustive, and should other treatments emerge which achieve the same objectives they will be considered.
3.4 Public Transport
Bus services are likely to be the only form of public transport available to the area for many years.
In the long term it is proposed that light and heavy rail systems be provided and
developed to serve the area. At this stage no estimate can be made as to when these services might be provided. Nevertheless, the Plan makes provision for a light rail reserve within The Boulevard reservation and the retention of the heavy rail reserve.
Provided residential development occurs in a reasonably compact fashion, a viable bus service can be provided along the main road network. The road network has been specifically designed so that not less than 90% of all dwellings are within 400 metres of a bus route. The encouragement of higher density housing along these routes would further facilitate this accessibility.
The location and design of bus stops and road design to accommodate buses etc , will be carried out in accordance with the "Guidelines for Accommodating Buses in Established and Future Urban Areas" produced by the Public Transport Corporation.
As a general guide, it is suggested that bus stops should be placed approximately 300 metres apart and light rail stops approximately 500 - 600 metres apart.
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The Local Structure Plan identifies the follo\ving levels of public open space.
• Regional parks • Neighbourhood parks • Local parks, and • Linear parks
(Refer Figure 5)
An assessment of the neighbourhood, local and linear open space proposed in the Plan, indicates that a total land area of 87 hectares will be required. It is important to note that approximately 200 hectares (or 28 per cent) of the developable area bas previously been subdivided and contributed open space. These previous contributions
. . average at around 8% of the subdivided
land holdings. The Subdivision Act prevents Council from requiring any additional open spa::e contribution for further development of this land. Therefore, where possible, an attempt has been made to integrate existing reserves into the proposed open space network. Where this is not possible, it is intended that the reserves will be sold, and the proceeds used to compensate land owners who are providing land in excess of the open space 1equirement.
For that land where an open space contribution has not previously been made, open space shall be provided at a rate of 8% of the land being subdivided with a maxi_1_l)l!m of 3% encumbered land. The Council may consent to less than 5% of unencumbered land provided any deficiency is compensated by double the amount of encumbered land. For a staged development, overall arrangements can be made with respect to the provision of public open space rather than on an individual development basis and requiring compliance with the 8 per cent requirement within each stage of development.
The provision and location of open space shall generally be in accordance with the Local Structure Plan and Vic Code. In instances where less than 8% of land is required, the Council may require a cash contribution equivalent to the value of the land which is the subject of the reduced requirement multiplied by a factor of 1. 5 to enable equivalent land to be purchased elsewhere
It should be noted that there are instances where by previous negotiations between Council and the land owner, a contribution in excess of the prescribed 8°10 will be made.
4.2 Regional Parks
The Regional Park system comprises as follows:-
• The Plenty Gorge Park. This is integral to the regional open space network, but 1s outside the Plan area.
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• The Quarry Hills Park which essentially follows the ridge circling the Plan area
providing a passive open space link from the proposed South Morang Regional Activity Centre to the Plenty Gorge Park. The Plan identifies Conservation A zoned land within the South Morang Pastoral holding comprising approximately 55 hectares which is being provided for the Park. It is intended that the
additional land required for this Park will be acquired either by negotiation or on the open market.
4.3 Neighbourhood Parks
The Neighbourhood Parks are essentially proposed to cater for the broader active and passive recreational needs of the whole community.
These parks provide the focus for the linear open space system .
Seven neighbourhood parks have been nominated to accommodate the projected active
recreational facilities required to serve a population of around 24,000 people. The criteria applied to estimate facility requirements is based on the following guidelines from the Scenic Spectrums Pty. Ltd. submission to the Panel (March 1994).
Neigl,bour/rood Facilities - facilities servicing an entire neighbourhood of 5,000 to 8,000 population. Neighbourhood facilities would normally serve residents within I kilometre ( 15-20 minutes walking time or within 5 minutes driving time). Development of significant Active Open Space facilities of a greater size and quality than Local Facilities would usually be provided in conjunction with or adjacent to Neighbourhood Schools and other Neighbourhood Community Facilities. These facilities would usually be located along a public transport route and pedestrian/bicycle track where possible.
Guideline.5 for Neigl,bourl,ood Facilities:-
• I Football Cricket Oval and associated facilities (3 0 ha) • I Soccer Field and associated facilities ( l. 5 ha) • I Indoor Basketball Court and associated facilities (0 20 ha) • I Outdoor Basketball Court and associated facilities (0 20 ha) • I Indoor Netball Court and associated facilities (0 20 ha) • l Outdoor Netball Court and associated facilities (0 20 ha) • 4 Outdoor Tennis Courts and associated facilities (0 40 ha) • I Neighbourhood level Playground and associated facilities (0 30 ha) • I Neighbourhood Community Centre and associated facilities (0.25 ha)
(It should be noted that above guidelines are based on a population catchment of 5,000
to 8,000 people).
In addition to the nominated neighbourhood parks. it may be possible that arrangements can be made for public usage of the open space areas and facilities normally provided in association with the primary and secondary schools.
Although the total amount of neighbourhood open space required should not vary from that nominated on the Plan, the exact boundaries of each park and the types of facilities provided will be determined at the Subdivision Stage and in response to changing community needs.
4.4 Local Parks
The local parks will generally be provided on the basis of a 400 metres radius of homes. Each park will generally have an area of 0.5 hectares a·nd be located away from busy roads but still easily accessible to its catchment population.
The location and boundaries of the local parks will be determined at the time of subdivision.
The local parks will generally cater for passive and informal at..ive recreation (i.e. playground equipment), and should wherever possible include existing trees.
4.5 Linear Parks
A net work of pedestrian/cycle paths will be provided using linear open space links. These links proviJe access between the main open space areas and activity centres. Linkages will also be provided to the regional parks.
The linear parks generally follow watercourses, maJor hilltops/ridgelines, the SECY easements and Melbourne Water pipe tracks.
In designing the main roads attention will be given to providing safe pedestrian/cycle crossings where the liner parks are required to traverse these roads.
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5. HOUSING AND POPULATION
The Whittlesea Planning Scheme prescribes the following planning policy that:-
• Subdivisions provide a diversity of lot sizes, a convenient and safe road network, appropriate pedestrian and cycle paths and sufficient usable public open space.
• Engineering design and construction standards allow the use of the most cost effective techniques in meeting functional needs
• House siting standards allow for efficient use of the lot and promote flexibility in controlling building setbacks and bulk, daylighting, private open space and carparking.
• Maximum use be made :-: the Victorian Code for Residential Development - Subdivision and Single Dwellings, April, 1992
The major factors influencing this policy are:-
• The demand for a wider choice in housing types, including compact housing on smaller conventional lots.
• The demand for provision of more affordable housing.
• Changes in population levels and demographic structure, including trends toward smaller households.
• The need to restrain costs associated with the provision of infrastructure in newly developing urban areas
By virtue of Clause 24 of the Planning Scheme, Vic Code applies to the Plan area. The Code is not specific with reference to achieving minimum residential densities but relies on broad objectives encouraging a mix of lot sizes and inclusion of smaller residential lots and integrated medium density housing in areas close to services, public transport and public open space, or with a good view.
It is now accepted in "fringe areas" that to achieve a reasonable degree of residential diversity as expoused in Vic Code, a gross residential density of 15 dwellings per hectare is required.
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Therefore, for the purposes of estimating a lot yield and notional population for the Plan
area, it has been assumed that the average gross residential density is 15 dwellings per hectare and the average household size is 3.2 people.
Using these assumptions and the net residential land area derived from the land budget, South Morang should be able to accommodate approximately 7600 households with a total population of approximately 24,000 people.
It must be stressed that these figures are approximations based on current estimations and parameters. Factors which may influence the figures could include:-
• changing fashions in urban development and densities over the 20 year development time horizon of the area;
• variations and refinements to lot yield with the preparation of Subdivision Plans;
• the fragmented land ownership may result in some smaller developable parcels being withheld from development;
As a general uideline, it will be expected that the Plan area achieve an average gross residential density of 15 dwellings per hectare. It is stressed that this is a gross figure
which includes such things as local open space, primary school sites, and other local facilities. Therefore, in reality the actual number of dwellings which will be contained on a hectare of land may be lower.
It will be expected that to reach the average density figure, higher densities will be required around the focal nodes, such as the activity centres and along the major roads
which will carry the main public transport routes, i.e. The Boulevard. The achievement of higher densities in these areas may be assisted by the designation of larger lots which are capable of future development. These larger lots could remain in parcels of sufficient size to be suited to higher density development at a future time when the community has matured to a point of demanding these more diverse housing forms.
In the interim planning phase these sites must be designated now.
5.2 Rural Residential Areas
A number of areas on the periphery of the Plan area have been identified as being suitable for rural residential development. The function of these areas is to soften the urban/rural
interface, particular in the steeper areas where the provision of full urban services would be economically unviable.
The rural residential areas will generally be subdivided into lots of between 0.4 hectare
and 2 hectares dependent on the visual sensitivity of the area, as well a other defined site constraints.
Subdivision Plans while providing the normal details on access roads and lot boundaries, will also need to nominate suitable development envelopes to ensure views to the ridgeline are protected.
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Development between the 170 and 185 AHO contours may be considered provided it does not detract from the visual and environmental integrity of the low hills. It should be noted, however, that each proposal will be considered individually on their merits and require an additional amendment to the Planning Scheme.
6. ACTIVITY CENTRES
An hierarchy of activity centres has been identified for the South Morang area. comprising local and neighbourhood centres
The function of the activity centres is to concentrate and integrate retail, health, educational and community facilities into distinct areas. This has a two-fold effect of providing a social focal point for the community, and reducing the reliance on the private car - as the activity centres are
reasonably central to many residences and located on public transport routes and pedestrian/cycle paths.
One neighbourhood and two local activity centres are proposed for the Plan area.
6.1 Commercial Facilities
It should be noted that just south of the Plan area is an area designated for the South Morang Regional Activity Centre It is intended that in future this area will accommodate a major shopping centre in the order of 50,000 - 70,000m2.
The major focus for retailing and commercial activities within the Plan area will be centrally located neighbourhood centre abutting The Boulevard. This centre will comprise up to I 0,0001112 of retail floor space catering for a wide range of convenience and comparison shopping needs. In addition, provision will also be made for an adjoining employment area, where uses such as light industry and peripheral sates will be permitted.
The retail/commercial component of this centre will require about 3 hectares of land, while the employment area will require about 2 hectares The centre is likely to develop in stages as appropriate population thresholds are achieved.
Two local commercial centres are proposed - one comprising a retail floor area of up to 45001112 located in the south-east of the western precinct and a smaller one in the north-west comprising a retail floor area of I 500m2 Together with a small employment component the centres are expected to require a land area of about 2 5 hectares and I 5 hectares respectively The centres are basically provided to cater for the convenience shopping needs at a local level
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The provision of community facilities has been determined by Council's "Policy for Community Activity Centres (location/features/timing)" adopted in May I 990. The policy makes provision for three different types of centres related to the population catchment which they serve. (Refer Appendix I).
The Plan proposes 2 multi-purpose community centres. The larger of these centres (Type 2) will be located in the main central activity centre and be designed to serve the needs of the western precinct. The land area required is about
0.3 hectares. A smaller facility (Type I) is proposed in the south-east activity centre requiring a land area of 0.2 hectare.
The eastern precinct is to be served by a Type 2 Centre which ts proposed on the abutting "Riverside" residential estate to the south.
Types of facilities provided in each centre will vary, but could include a Pre-School, Maternal and Child Health, Senior Citizens, Meeting Rooms etc. It is not possible to
indicate exactly what mix of facilities will be provided in each centre at this stage,
without a precise indication on the types of people who will be living in the area. It
should be noted, however, that the centres will be designed with maximum flexibility, so as to be able to respond to the needs of the initial population and the changing needs of people over time.
6.3 Schools
Advice from the Department of Education indicates that two primary schools will be required within the western precinct. These will be located as part of the two larger activity centres. A site area of about 3. 5 hectares will be required for each school.
The eastern precinct will be serviced by a primary school earmarked to be built on the "Riverside" Estate at the corner of Gorge Road and Riverside Drive.
A post-primary school has also be designated in the main acti,·ity centre to serve the Plan area. The school will occupy a site of about 7 hectares
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The development of South Morang from essentially a greenfields site to an intensive urban area, provides the opportunity to create a strong and imaginative design to give the area a sense of identity and character. A main feature of this design will be the use of significant natural features as a foundation for distinctive urban development.
A principal objective of the Local Structure Plan therefore is to ensure that the area is not perceived merely as an extension of the existing fringe suburbs, but instead is a distinctive and unique area in it's own right.
The area contains many natural and man-made features which are worthy of protection. The following key positive features should be conserved and enhanced in future development plans:-
• The historic town centre compnsmg the facilities around Old Plenty Road namely, the oval, school, church, houses and the railway reservation.
• The basalt escarpment which rings the historic town centre .. , ..
• The heritage sites as listed in Appendix 2.
• The important views : across the Redgum plains west of Plenty Road; across the Plenty Gorge Park; from the south towards the ranges in the north east; and from the south towards the hills which separate South Morang from Mernda and Whittlesea.
• The maximum amount of mature and young Red gums in a viable environment.
From these key positive features, four main themes emerge as appropriate governing ideas for new development. They are:-
I) The historic town centre as the generator of the sense of character and identity for the place.
2) Rural or open space separating between South Morang and adjoining suburbs to the south and north.
3) Enhancement of the historic linear service reservations. (ie Melbourne Water
Pipe Tracks and Railway Reservation).
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4) Retention of the dominant ri\"lr Redgums 011 the plains as the key landscape feature
7.2 Subdivision Design
The design of subdivisions shall general!> be in accordance with the "Victorian Code for
Residential Development - Subdivision and Single !)\, ellings ( April 1992)"
For guidance relating to the development of the old town centre area it is recommended that the "City of Whittlesca - Town::.hip Character Study (October 1993 )" be consulted
Any application to subdivide land into multi-lots shall be accompanied by a plan showing the location of all river Redgums (accurately plotted) with a trunk diameter of 200mm at
a height of Im above ground level The location of roads and lot boundaries shall be designed to place these trees either in open space, in nature strips or at the front or rear
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7.3 Activity Centres
These centres provide a focus for the community at a local or neighbourhood level and are typically based on a supermarket and supporting shops, generally in conjunction with schools, open space and community centres.
The centres should be outward looking, facing onto a main road and the adjoining residential areas. They should also be easily accessible to pedestrians, cyclists and bus services.
Planting around the activity centres particularly at their entrance should be in appropriate exotic species to easily define and identify the centres from the surrounding areas.
7.4 Major Roads
The Plan provides the framework for the main road network. Although a number of new roads are proposed, the netwo1 K uses existing roads where possible.
In design terms, although the roads will serve an urban function carrying large volumes of traffic, the existing roads can, with careful design and planting, retain some of their existing rural character. . ,. ·· · · · ·
Given the rural-type appearance of the existing roads, it is proposed that tree planting along the main roads be largely in native species, indigenous to the area.
The use of these trees planted in a formal or informal manner depending on the topographical characteristics of the road, will contrast with exotic species used around the activity centres.
7.5 Open Space
The main open space areas should reinforce the natural features of the area and in particular the Plenty River Valley and basalt plains. Inherent in this is the retention of existing Redgums in an open grassland. Open space should be designed as a network of linked spaces which have this common theme.
Generally, only native species to the Plenty Valley shall be planted in open space areas. This will place an emphasis on grasslands and Redgums rather than shrubs.
Where open space adjoins a residential area, the park boundaries and/or connecting linear open space shall be bordered by roads, avoiding the unattractive "back fence" appearance.
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South Morani; Local Structure Plan
The proposed Plenty Gorge Park adjoins extensive urban development in the eastern
precinct Due to the environmental significance of the park. it is imponant that any development adjacent to the park boundary be sensitively designed.
In preparing development plans for land adjacent to the park, developers will be required
to consult with appropriate oOicers from 1elbourne Parks and Waterways and address issues such as -
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• the provision u,· a predator fence along the Park boundary • appropriate buffers and firebreaks • the height of buildings and external materials/finishes • appropriate drainage measures to control run-off into the park • appropriate plant species near the park boundary
Heritage Buildings and Sites
Any subdivision should be designed to allow identified heritage. buildings and sites to be retained with an adequate area of land For example, where large gardens exist these can
be incorporated into a local park and the farm buildings allowed to abut the park 111 a visual manner
Heritage buildings should retain their street orientation wherever possible
existing farm buildings (perhaps incorporating windrows) are integrated subdivision, a battle-axe lot shape approach may be·a·ppMpri"are·-(Figure 7)
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Soulh Morang Local Structure Plan
A number of the SECY easements containing high tension transmission lines traverse the Plan area In addition. the Terminal Station adjoins the southern boundary
These facilities are visually intrusive. hov,ever. land within the casement can be put to useful purposes. in1.:uJing as linear open space, as part of a rear yard or paddock for adjoining lots. or as carparking associated with a particular use
In designing development in proximity to these easements. attempts shall be made where possible to incorporate landscape buffers adJt1-:e11t to the easement to help screen the pylons from view The planting used should be generally river Redgums. intermixed with endemic wattles and thick understorey species as appropriate ( Figure 8)
Part of the Plan area is encumbered by a high voltage power transmission line easement The power Imes within this easement create a field of electromagnetic radiation over the land Scientific research at the time of preparation of the Local Structure Plan (November 1994) has not establisheci that magnetic fields on land in proximity to high voltage power transmission lines initiate or promote health risks such as cancer or any other harmful effects on humans However, it has not been scientifically established that such fields are not harmful to health Persons concerned with this issue should conduct their own enquiries
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7.8 Archaeological Sites
A report for the City of Whittle.;ea titled "The Aboriginal Heritage of the Mernda Area, Quarry Hill, Granite Hill and the Middle Darebin Creek - September l 994" has identified a number of sites of archaeological significance in the northern section of the Plan area (which was included in the study).
As the Plan area has not been fully surveyed it will be necessary that any proposal for
multi-lot subdivision be accompanied by an archaeological survey prepared by an appropriately qualified practitioner.
It should be noted that it is an offence under the "Aboriginal and Torres Strait Islander
Heritage Protection Act 1987" to wilfully disturb or destroy any site.
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An important function of the Local Structure Plan is to identify land for commercial and employment uses which will attract investment and ultimately provide employment opportunities for future residents.
Unfortunately, this objective is problematic. The "Plenty Valley Employment Strategy"
makes the point that merely setting land aside for these uses does not guarantee that development will occur. In addition, it would appear that locational choice is almost totally market driven.
From the experience with development in other areas, it can be expected that with the right conditions, approximately 20% of residents in South Morang could ultimately find employment in the region.
Some of these employment opportunities could be provided by development of the South Morang Regional Activity Centre and the employment zones nominated in the Plan area including the south of the area. In addition, significant employment opportunities can be expected in the construction and associated industries over the development time-frame of the area.
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9. Staging
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•
•
has the potential to engender a unique character and identify, to help develop a strong sense of community. reduces the prospect of isolation . is in a variety of ownerships to avoid establishment of supply monopolies which could effect housing choice and affordability.
The Local Structure Plan encourages the staged develo!)ment of the area along the lines of the staging sequence proposed in Figure 9. It is considered that this essentially incremental growth provides the best opportunity to meet the above objectives, in particular the timely provision of infrastructure and services
It would appear that the most logical first stage of development would be on two development fronts, immediately north of the Civic Centre and the "Riverside" Estate. The main reason for this is the proximity of existing trunk services to these areas.
While the preferred growth pattern is incremental to existing development, it is acknowledged that there may be reasons why this land may not be made available for early development. These reasons could range from the fragmented ownership pattern, withholding of land by some owners, marketability issues etc.
The Plan is sufficiently flexible to accommodate development which does not accord with the preferred staging sequence. Given the problems however with fragmented growth, any such development will be required to satisfy the following criteria:
• all utility and engineering services provided at the developer's cost. • the provision of a basic range of community facilities as required by Council at the
developer's cost. • main roads required to provide access to the development constructed or upgraded
to a standard required by Council and Vic Roads at the developer's cost.
The above infrastructure and facilities will be no more than is required to service the particular development being undertaken at that time.
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The Local Structure Plan has broadly identified the range of infrastructure and facilities required to serve the planned development of South Morang.
Apart from infrastructure which has traditionally been funded by developers, such as minor roads and utility services, developers in the Plan area will also be required to contribute towards the provision of other infrastructure items, such as major roads, community activity centres, and basic improvements to open space. Council's obligations towards the provision of infrastructure, financed from it's general rate base, will include the: major improvements to open space (i.e. development of sporting fields and construction of pavilions); provision of community services; and the recurrent costs of maintenance and upgrading.
111 line with the "Guidelines for Development Contributions - October 1991" prepared by the State Government, Council has prepared the "South Morang Local Structure Plan lnfrastructu1e Funding Policy - December, 1995" for the area which established the nexus between the need and type of infrastructure proposed, and the development.
The Policy is a publicly available document and should be consulted by developers wishing to determine the assumptions behind the infrastructure levy; infrastructure items being levied and costings; mechanisms to achieve infrastructure delivery; and financial management principles.
A separate infrastructure levy has been struck for the eastern and western precincts given their inherent differences The levy for the eastern precinct has been calculated at $6,060 per hectare. The levy for the western precinct has been calculated at the rate of $42,934 per hectare for the National Mutual area of the precinct, and $42,566 for th remainder of the precinct. The option to pay the levy on a per hectare basis has been provided essentially as an encouragement for higher densities and due to problems in trying to accurately predict ultimate lot yield.
The levy will be collected by Council at the time of subdivision ( or stages thereof).
It should be noted that developers will have the option of either paying the levy or carrying out the works "in-kind" (or a combination of the two). As an example, the provision of land or construction of buildings and works by a developer in accordance with the Infrastructure Funding Policy can be offset against the levy payable. In addition, a developer will receive a credit for the provision of infrastructure which benefits other landowners.
It should also be noted, that South Morang Pastoral Pty Ltd are exempted from further development contributions on the basis of a previous Section I 73 Agreement which requires $500,000 (indexed) to be paid to Council for infrastructure/facilities at the time of development of their land.
36 ...
11. MONITORING AND REVIEW
Following commencement of development in South Morang, Council will establish a
system of periodic monitoring and review in order to gauge whether the principles of the Plan are still relevant.
This monitoring will probably be in the form of a resident survey every 12 months in order to determine the characteristics of the community and their perceptions of the area.
Should major chages to the Plan be required, these will be implemented with community consultation.
37
APPENDIX 1 - POLICY FOR COMJ\tlUNITY ACTIVITY CENTRES
. . .. . - ... -··--,· ...... , " .... , ... ·- . ...... •" .
(LOCATION/FEATURESffIMING)
(LOCA TION/FEATURESffIMING)
This policy is designed for growing areas, although elements of it may be relevant when providing a facility in an established area.
The general location of a community activity centre should be shown in any Development Plan.
Council will take a development levy for each residential lot created by subdivision. (This includes subdivision of existing unit sites and the like). This will be used to purchase land and build the facility (and the levy is based on the anticipated cost of land and building). Where a facility is located outside a given residential catchment, but still serves that catchment, the development levy will be based on a partial contribution (generally pro-rata).
Council will negotiate with subdividers to obtain the identified land (when provided with essential services) at no cost on the basis that the developer is credited with the value of the land when calculating the development levy.
The Development Levy for community activity centres will be imposed on all residential subdivisions of land zoned Reserved Living B, · or that located in the Plenty Valley development area. This excludes the area generally to the south of the transmission lines at South Morang (l-lowever a levy may still be imposed for reserve development and half-cost fencing in these cases). The principle behind this is that such levies should only be made where they can be applied fairly, i.e. in relatively broad areas, e.g. where the community facility will not serve a significant area already development/permitted. Accordingly, the levy will not be imposed for "in-fill" subdivision. An exception to this is where the development area is so large that it justifies a facility in its own right.
41
TABLE I
Council will endeavour to pro\·ide cenain facilities \vhen the development of the residential catchment has reached a cena1n stage
The numbt:r of community activity centres will depend on the size of the catchment
Size of Catchment Number of Stage in development of catchment (Residential lots) Community when each Centre is to be provided (2)
(1) Activity Centres Needed First Second Third
Centre Ce11tre Centre
8 - 9,000 3 1/4 112 3/4
Notes:
l. These ranges are deliberately "loose" This is to cater for different circumstances For example at the higher end of the range (or between ranges) it may be appropriate to have a "higher order" centre ( e g type 3) Or the converse may be the case. This depends on the nature of the population and on proximity to other facilities.
2. This depends on the type of facility to be established (See Table 2 for description). e.g. a type 3 facility may have to wait a longer period before being provided
(alternatively, it may be designed so that the core can be built earlier and added to at a later time)
3 For catchments of less than 2.000 lots there may be just1t.1cat1on for a one-off facility This depends on proximity to other tacil1ties
42
POLICY FOR COJ\11\IUNITY ACTIVITY CENTRES
Table 2
Community Activity Centres
Staff Office Shared kitchen and toilet facilities Yes Yes -
Maternal & Child Health Service Yes - -
Waiting/Changing Room Interview ·· -
Room Consultation Room for haring Yes - (Yes (plus sick tests, visiting health & welfare bay) Lounge-type meeting room for Yes - -
possible activities, ineetin. Hall-type meetin area suitable for - Yes -
playgroups, arts/crafts, meetings of up to 100 people Community Hall with stage, up to -
·:..r-· . .. - Yes 200 people Commercial type kitchen - - Yes Senior Citizens club lounge style - - Yes meetins/activities Youth club - small hall -
- Yes Central toilets and showers - - Yes Reading room for branch library and - - Yes study
·1 Access for disabled persons Yes Yes Yes Incorporate
... for Yes opportunities - -
cultural facilities Carparking Yes (I) ves (2) Yes (2) Appurtenant outdoor recreation Small Small Large area Size of site (approximately) ( 3) 2,000n/ 2.500m2 ) 6,00om· Location-on Main Road - - Yes Location-on Collector Road (or Yes Yes r Yes Trunk Collector)(S) Location-on Access Street ( S) (6) \0) (7) Location-on Access Place ( S) (7) (7) (7)
43
Location-major linear links Location-on pedestrian/cycle routes Location-on public transport route Location-adjacent to school Location-adjacent to local shop Location-adjacent to shopping centre Location-adjacent to district (8) Location-adjacent to large park Location-adjacent to small park Retain/close to existing vegetation
I Minimum of 15 carspaces
park
local
local
native
Yes Yes Yes Yes Yes Yes
. . Yes Yes Yes .
Yes Yes Yes
2. Based on O 3 spaces per person capacity in hall i\tay be reduced if sited in conjunction with carparking for other facility, e g large PO S feature.
3. Larger areas may be needed for sites close to residences (i.e. to increase buffers). 4. Only where access is safe and convenient. Must have alternative pedestrian access
(e.g. a liner link). 5. For definition of road categories, see the Australian Model Code for Residential
Development. 6. Not desirable. 7. Only if this forms a minor pedestrian access Vehicular access should be from a
Collector (or Trunk Collector or Main Road) 8. For definitions of parks see open space guidelines
44
45
HERITAGE ITEJ\IS
The following heritage items have been identified in the Whittlesea Heri!lge Study 1991 and are recommended for Planning Scheme Protection
SOUTH MORANG
DESCRIPTION GRADING
"Magpie Farmhouse", Plenty Road Demolished 1993 c
House, outbuildings and orchard Plenty Road (west side) Demolished c
March 1991
Morang South Primary School No 1975, Old Plenty Road A
Le Page farm buildings, Plenty Gorge, MW Park c
House, 788 Plenty Road. (east side) c
Cottage, Williamsons Road . .
Uniting Church, Old Plenty Road c
House, 27 Old Plenty Road, (west side) B
Railway Station and Station house. off Williamsons Road c
Gordons Cottage/Dynons Craft Cottage, Plenty Road Demolished c
1992/93
Red gums, Plenty Road ( west side) c
Residence, stonewall and outbuildings, Gordons Road (north side) B
46
BASIS OF THIS REPORT
This report has been prepared by the City of Whittlesea following consideration
of the Panel Report on Amendment L82 to the Whittlesea Planning Scheme.
It is based on a report prepared by Spiller Gibbins Swan Pty ltd entit1d:
"South Morang local Structure Plan, Infrastructure funding Policy"
January, 1995, . . . - .... .....,, -- , .. .,., . . ' ..
with National Mutual/Silverton"
TABLE OF CONTENTS
4. PLANNING UNITS
6. THE WESTERN PRECINCT
6.1 EXISTING OEVELOPMF T
6.3 AGREEMENT BETWEEN THE PLANNING AUTHORITY AND NATIONAL MUTUAL (SILVERTON) HOLDINGS 9
6.4 EXISTING INFRASTRUCTURE
6.6 CASH-FLOW CONSIDERATIONS
8. ASSESSMENT
FIGURE 4:
BRING THE FUND TO $ZERO IN YEAR 12
9
10
10
12
12
15
15
16
16
16
17
17
22
23
City o( Whittlcsca
The objectives of planning in Victoria [S4( 1 )(e) Planning and Environment Act! include the co·ordination of public utilities and other facilities for the benefit of the community. Planning schemes can provide for requirements for the prov:sion
of public utility services to land [S6(2Hfll.
The land in question is delineated in Figure 1.
Figure 1: South Morang Local Structure P Ian Area
(Rel:280WPS02 I Page 1 "'
Infrastructure Funding Scheme
City of Whiffle sea
The predominant zone in the LSP area is Reserved living 8, a purpose of which is to designate land generally suitable for urban development including the provision of community facilities and physical infrastructure.
The purpose of this policy is to provide a sound fiscal plan which when integrated with the physical plan for the area ensures that the overall objectives of orderly and proper planning are met.
The basis of sound fiscal planning are the principles of efficiency and equity which have been developed by the Administrative Appeals Tribunal into four tests. These tests are intended to be applied when conditions are proposed on permits pursuant to Section 62(2Xh) of the Planning and Environment Act.
The AAT tests are documented in Eddie Barron Constructions Pty Ltd V Shire of Pakenham 1990 (6AAITR8). The tests are:
Need:
Equity:
Accountability:
Nexus:
(Raf :280WPS021
The need created by the development and the measures to satisfy the need must be adequately identified. In the Barron case rigour in analysis was stressed, the concept of basic liveability was adopted and exclusion' of backlogs was made a requirement. Non compliance with any requirements renders any proposal a tax for which there is no power.
The payment or levy must be a fair and reasonable apportionment of the cost of implementing the need satisfaction measures. In the Barron case it was established that the shortcomings to be aoided are a disproportionate cost falling on the applicant in terms of benefits derived coupled with a lack of evidence of proportionate contribution by other benefiting landowners or by authorities.
The responsible authority should implement procedures to ensure that the money collected cannot be used for any purpose other than that for which it was levied and which clearly show how, when and where the money collected is spent. In the Barron case specific requirements are set out.
There must be a reasonable nexus between the development and the need satisfaction measures. In the Barron case the concept of a planning unit was introduced.
"Community facilities are those for which the community which w,11 be
constituted by the wider planning unit will generate a need. Thus, where a
particular subdivision or development will form part of that community as part of
a cumulative development process so should that subdivision or development
contribute part of the cost of providing those facilities. Thus the condition must
fairly and reasonably relate to the total development of which the specific
development in question is a part. The sorts of questions which may be asked in testing this proposition are:
Will the community benefit collectively from the
infrastructure?
Will the community suffer costs if the infrastructure is not provided?
To what extent will the capacity to use facilities, throughout the
community be reciprocalr (p. 30).
Page2
South Morang - Local Structure Plan Infrastructure Funding Scheme
City of Whi«lesea
Sound fiscal planning for infrastructure requires, amongst other things, that the infrastructure provided:
meets real community needs;
is funded on an efficient and equitable basis; and
is financed on an efficient and equitable basis.
In these criteria the concept of funding means paying for an item of infrastructure and financing means spreading the
cost over time, ie. through borrowings.
Thus there must be full integration between the physical plan and the fiscal plan because many of the above criteria
have spatial imperatives.
The sources of funds to be taken into account include:
general rates;
user charges.
Note that borrowings are not included as a source of funds as these are a method of fina icing - not funding.
This policy is limited to those infrastructure items exhibiting a close nexus with the actual development of land. The
Council will fund and finance the majority of community infrastructure required in the area from conventional sources.
(Rel:280WPS021 Page 3
City of Whitllesea
3. THE CASE FOR DEVELOPMENT CONTRIBUTIONS
Development contributions have been an integral part of the land development process for over four decades. They take the form of direct provision for infrastructure, land or levies.
Development contributions, for good reasons, have traditionally applied to infrastructure which for functional reasons is required up-front in the development process. The need for many infrastructure items arises even before people move into an area end the need for other items arises because they cannot be retro·fitted later.
Thus there has been a concentration on roads and utility services. More recently there has been an extension of the principle to the human services area· but primarily for capital items.
...
•
•
•
•
•
Need for Infrastructure: Development contributions should f'elate to the infrastructure needs of the community and its staging, and there should be a nexus between the requirements generated by the development and the purpose for which the contribution is levied. As far as practicable, the timing of the provision of a service should match the demand for that service.
Efficiency of Infrastructure Charging: Development contributions policies should he designed to promote the provision of infrastructure at minimum cost and with maximum flexibility. The development contributions levied on a development should relate to the cost of providing the infrastructure for which they are intended and should provide clear price signals.
Equity of Cost Apportionment: Development conliioulions'po1/cfes ""
s/iouf;{'ensure ihat the burden of paying for infrastructure is spread f airfy between beneficiaries, with due regard to the benefit received.
Efficiency of Urban Form: Development contributions policies should be complementary to efficient form of urban development and the efficient supply of land and infrastructure.
Housing Affordability: Development contributions policies should not constrain housing aflordah1lity, while ensuring that communities are provided with appropriate infrastructure and services.
Administrative Efficiency: Development contributions policies st,ould he clearly stated. Procedures should he simple and transparent, and the responsible authority should be accountable for the proper administration and expenditure of funds.
• Consistency and Certainty: There should be consistency between local authorities in the way development contributions are derived, collected, held, and spent. Development contnbutions policies should provide maximum certainty for parties involved in the development process.
• Commercial Viability: Development contributions should not threaten the commercial viability of a project.
Note: When development contributions would substantially conflict with these principles, other means of funding should be adopted."
These principles are taken into account below. A balance between all of the alternative sources of funding is sought through presentation of a scenario (Scenario Bl which takes into account the potential application of part of the growing rate base to infrastructure funding. Calculation of development contributions is guided by a methodology in a manual produced by Spiller Gibbins Swan Pty Ltd (et al, 19921 the elements of which are shown in Figure 2.
(Ref:280WPS02 J Page 4
1. OOCUH(HI UISllh"C O(V(LOPH(Hl
iRef:280WPS021
l. (Sl IHAl( fUlU( 0( V(L orH( H 1 g\ :l
Soulh Morang· Local Slruclure Plan lnfrasuuclure Funding Scheme
City of Whitllesea
<(Sl!.OLISll(S ·,c co·,
-
P(rA( c1,r1 lAl VO,lS PCOCRAH VllH "110-JHI ANO IJHIHG or ALL (XP(HOJTU(
J
EXl(Nl or '[Xl[RNAI. 8(H(flfS•·
gg;:g;: :g &3116 C
Orfrt I
8.
IO[HIJFY Af'Pl!OPl!IAH cost -··· ·- ........ ----·-·····--··-· APPORI 1011.[Hl HElHOOS ([SIA8L(SH[S '(OUI IY' J
q_ CALCULAT( CONTRJBUTJOH QEOUJ R(O
l 10.
![ST CASH·fLOV JHPLICAIIOHS AOJUSI CAf'llAL VOR(S PR(x;RAH
PPIORIT IS[ AHO S[ 1 L(V(l or (OH IR I BU I I OH H I [ R I HPA( I ASALYSIS
AOJUl (ASH fLOS I ____ J
,z IMPL(t<!klAI ICN
f'IL.t.U!IIP:C S(H[PJ,f POL I c, c "" 1 1.- 1 NC o• (ONIRIBUIICHS IN FINO <c(O"J•1,81t 11 r ?PC,C(C,V(',
1[$1AfllN(5 "<((0JN1'81ti1> 1!
FIGURE 2: OVERVIEW OF METHODOLOGY
Page 5
City of Whittfesea
The planning unit for an infrastructure item 1s the area over which its benefits are reasonably evenly distributed. For example, the
planning unit for a cul-de-sac may be the ten or so houses it serves; the planning unit for an arterial road might be the whole of the
northern suburbs. The more localised the facility in question the more contained the planning unit becomes.
The functional planning units for the South Morang LSP area are those shown in Figure 3.
The planning units are centred on the three Community Activity Centres and they encompass the areas' arteriaVsub-arterial road
network. Higher order roads will of course have planning units extending beyond the LSP area.
The infrastructure that is relevant to the two planning units west of Plenty Road indudes:
arterial/sub-arterial roads; and
community activity centres{2).
The infrastructure that is relevant to the planning unit east of Plenty Road is the community activity centre and a number of items
such as a predator proof fence adjoining the Plenty Gorge Park.
5. THE EASTERN PRECINCT
The eastern precinct is that part of the eastern planning unit located east of Plenty Road and north of Gorge Road.
5.1 EXISTING DEVELOPMENT
Existing development is largely confined to the area south of Gorge Road which has a capacity for 600 lots, but as this area is
already largely developed and development contributions paid, it has been excluded from the current analysis to avoid double
payment.
5.2 FUTURE DEVELOPMENT
'Mlile there is a capacity for approximately 1,200 lots in the planning unit overall (induding the 600 lots existing to the south of
Gorge Road), the area to the north of Gorge Road which will contain future development of approximately 600 lots is the focus of
this study.
The precinct is well served with roads. The collector roads can be treated as subdivisional roads (providing access frontages) and
provided directly by developers.
trcture Plan
'·· , ;; ·."
;·-:::-:. '\
South Morang - Local Structure Plan Infrastructure Funding Scheme
City of Whittfesea
The infrastructure required, costs and cost apportionment 1s shown in Table A which 1s presented on a "per hectare" basis.
Residential densities of 15 lots per hectare have been assumed.
Table A: Eastern Precinct Costings
Item No. Category Detail Cost
I Community Activity Centre Riverside CAC $300,000
(half cost)
(half cost)
$27,000
Collector Road Connections
TOTAL $412,000 $6,060
per hectare
Collector roads within the eastern preanct are treated as subdivi,;1cnal roads, and thus provided by developers, because house
frontages will abut directly with access provided. However, collector road connections to the existing road network are an
appropriate component of the development contribution as they fall outside the responsibilities of developers. Additional details of
costings are induded in Appendix A.
The recommended development contribution is $6060 per hectare for the land to be located north of Gorge Road. Development contributions have already been paid on land to the south of Gorge Road under prior pemiits.
(Rel:280WPS021 ge8
6. THE WESTERN PRECINCT
The western precinct consists of the two planning units located west of Plenty Road.
South MorNlf} • Local Structure Ffan
City of Wlutt/esea
While the basis for distributing costs in the eastern precinct is 'per lot' the western precinct costings are dominated by roads which are not as sensitive in their requirements to the number of lots. The same road network can accommodate a wide range of residential densities. Accordingly, it is recommended that costs be distributed on a unit-area basis (ie. 'per hectare l This has the advantage of providing a financial incentive for developers to pursue higher densities, which in turn will have the effect of making publicly-funded infrastructure more cost-effective. As with the eastern precinct, collector roads are treated as subdivisional roads.
6.1 EXISTING DEVELOPMENT
There is no existing development which is relevant to the development contribution calculation.
6.2 FUTURE DEVELOPMENT
The developable land in the western precinct has an area of 428.5 ha.; 135.17 ha. of which is included in the National Mutual (Silverton) Holdings area and 293.33 forming the remainder. Average gross residential densities will be 15 dwellings per hectare.
6.3 AGREEMENT BETWEEN THE PLANNING AUTHORITY AND NATIONAL MUTUAL (SILVERTON)
HOLDINGS
Agreement has been reached between the City of Whittlesea and National Mu'tual (Silverton) Holdings on a land budget and development contribution for the National Mutual component of the Western Precinct.
Principal elements of the agreement include:
• The estimated net residential area for National Mutual holdings is 135.17 ha.
• A reservation width of 22.6 metres is to be provided for The Boulevard with a 15 metre wide reservation for light rail to be developed by the State. One carriageway of 7 .3 metres in width is also to be provided.
• A reservation width of 22 metres is to be provided for NS-1, with the provision for one carriageway of 11 metres in width.
• A total of 50% of both land and construction of the 605 metres of Findon Road in the National Mutual area is assumed to be externally funded due to its role as a regional facility. There will be no costs attributed to the notional acceleration of land acquisition for the road.
• Open space, fitted out with infrastructure as specified, will be provided on the basis of 5% unencumbered and 3% encumbered. Any provision in excess of these figures will be compensated from the open ..space fund. Conservation A land is included as part of the development contribution.
The precinct is served by McDonalds Road and Plenty Road. There is no other relevant infrastructure save for existing road reserves which can accommodate part of the distribution road network.
(Rel:2BOWPS02J Page 9
Soulh Morang - Local Slruclure Plan lnfraslruc<ure Funding Scheme
City of Whilllesea
The infrastructure required, costs and cost apportionment is shown in Table B.
Additional information on the costings are included in Appendix A. The costings are for the road network inclusive of
collector road connections, but exclusive of that half of the construction cost of Findon Road which relates to its role
as a regional facility. As in the eastern precinct, developers will provide sub·divisional roads (collectors with frontages
providing access). On this basis the costs are:
• Roads • Community Activity Centres • Open Space, including Neighbourhood Parks etc
TOTAL
50,000
812,432
5,804,565
The development contribution for this precinct is calculated on a cash·flow basis. That is to say, it is calculated on the
basis of a per hectare levy on developable land required to service a fund which has a zero balance at the end of a pre
determined period. The fund may at times go into debit or credit and the cost of interest paid and earned is taken into
account.
Appendix B outlines the methodology and assumptions employed. The scenario developed below is indicative only and
should not be taken as representing the Council's intentions. For example, if the release of lots is appreciably faster or
slower than the assumed rate, then this will have implications for the timing of service provision.
(Ref:280WPS02J Page 10
City of Whittlesea
Western Precinct Other Than National Mutual Area
Item Number
N-S 1 • Land & Construction
N-S 2 • Land & Construction
Lakeside (AC • land & Construction
Equipping and landscaping Neighbourhood Park; E1c.
Total
Page 11
City of Whitrlesea
New development brings with it a growing rate base. It is assumed that rates equate to $9,000,lta of which 10% is
available for capital expenditure.
By incorporating the growing rate base into the cash flows it is possible to reduce the development levy. Table C
shows the resultant cash-flows where it can be seen that on this basis the levy would be $42,566,lta ($2,838,1ot). (It
should be noted that South Morang Pastoral Pty Ltd is exempted from further development contributions on the basis
of a previous Section 173 Agreement).
6.8 SPREADING COSTS INTO THE FUTURE
. . · . · ·.· ·· ..
However, the restraint on local government's options implied by global borrowing arrangements and the legislative
environment must be recognised, along with Council's policy of limiting borrowings . In this context an alternative
scenario based on the municipality's improved capacity to fund debt on long-lived infrastructure provided by new
development, and thus reduce further the development contribution borne by initial purchasers, is only of academic interest.
(Ref :280WPS021 Page 12
l
Dev
H
9
2c;
!5
of Race
727,693 1,064, 150 727,693 1,064, 150 727,693 1,064, 150
1,723,905 1,064, 150 1,723,905 1,064, 150 1,723,905 1,064, 150 1.732,490 1,064, 150 1.017.0'iO 1,064,150 1.027,050 1,064, 150 447,808 1,064, 150 447,808 1,064,150 447,808 936,452
12,484,808 12,642, 102
Net Revenue ($)
336,457 336,457 336,457: -659,755 -659,755; -659,755 i -668,340 37, 100 37, 100
616,342 616,342 488,644
157,294
Rate Revenue i A .1 bl f . Net evenucvar a e or
C . 1 After R.ites
22,500 358,957 45,000 381,457 67,500 403, 957 1 90,000 -569,7551
112,500 -547,255} 135,000 -524.755 t 157,500 -510,840 180,000 217, 100: 202,500 239,600 225,000 841 ,342 247,500 863,842 237,600 726,244
1,722,600 1,879,894
Borrowing Interest Rare ar
Fund (S) Re.ii ("lo)
358,957 6.00% 761,951 6.00%
1,211,626 6.00% 714,568 6.00% 210, 187 6.00% -301,957 7.00% -833,934 7.00% -f,75,209 7.00% -482,874 7.00% 324,667 6.00%
1,207,989 6.00% 0 7.00%
1,280,469 0
-. ..,., "' - c: - '< :, v, O Cl. -- -. c: '<:':::, I") s:;:0-:l - ::,- v, c:
- g_ Cl> -;:i "' 3 iii :,
-4 )> tlJ ,m 0
)> c:, ::c mm 0 2 )> -4 0 2 )>,- c: -4 c: )>,- 0 m < m,- 0 '"C m 2 -4 C") 0 2 -4 :0 to c: -4 0 2
PROPOSED NATIONAL MUTUAL DEVELOPMENf CONTRIBUTION
INFRASTRUCl URE OPEN SPACE Plavi:rounc! Equipment Basic Landscapini; Perimeter Planlini: (Im.) Cvcle Paths (Im.) Conservation Lanrl Total Open Space
ROADS lHE BOUL(VAR() findon-Cordons Cordons-NS 1 Sub Total FINDON ROAD Boulcv.ud· NS 1 Sub To1.,I NSl Boulcvarc!·Slh of Cordons lane Findon-Slh of Cordons lane Sub Total TotJI Roads
COMMUNITY FACILITIES Community Pl.in Initial Community Mcclini: Room Told/ (ommunrl)' r.1c:1/,1ic1
GRAND TOTAL
Total Land Area (ha)
2.02 2.86 4.88
0.66 ,. l
1.76 7.77
1780 S4 2100 sn
895 1265 2160
I Un,t Rate Construction
lonslruc1,on land Cosl Cost
S20t.85 S544,500 S20t.465 SS44,500
Sll9,520 $929,500 S 196,000 S43 7,500
. S3 l 7,S20 S 1,367,000
$ J,J97,67J SJ.544,460
s1.,, s. on J ss1. 689,4 91
T 01al
S 1 ,040.706 S 1,470,942 S2,5t 1.648
P45.CJ.,s S745,96S
. . ,
Rates Integrated . Fund at $0
Year 12
(Table CJ
National Mutual
8. ASSESSMENT
Per lot
City of Whitt/esea
. . .. ·- ---- ...... -.•·¥·. .
It should be noted that few developers will actually pay cash as in most instances land and works will be provided to
equivalent value. Therefore, the scheme should be seen as a method of equitable cost apportionment in that it provides
a benchmark against which contributions can be assessed. • w• • • • • • • - •• •• • • • • • ,v • , • • • ·-•·0.-, ....... ..,.... ..... ,......,..., ·--"''-.\ -.--•--• ,,
Moreover, in providing infrastructure directly, the cost to developers is at wholesale prices. Developers also receive the
benefit of increased marketability of the product. Thus the impact is substantially lower than the assessed levy.
The scenario requires borrowings lwhich may be internal to the Council's finances! but it is believed that such an
approach is appropriate given that the infrastructure delivers benefits well into the future and there is an assured
income stream. It is therefore both efficient and equitable to borrow to spread the cost over the generations who
benefit and to minimise the impact of development contributions on housing affordability and commercial viability (The
'Minister's Review' criteria).
A further consideration is the extent of the deficit. In theory the scenario shown in Table C accumulates a maximum
deficit of $0.9 million. This might require borrowings or it might be financed internally at considerably lower cost. This
represents borrowing from other ratepayers rather than cross-subsidies which would occur in other circumstances.
-
City of Whittlcsea .--------------------------------------------------------
Y)-0 0 0
BRING THE FUND TO $ZERO IN YEAR 12
s... ro Q)
City of Whitt/esea
Documentation
Documentation of the development contribution scheme should take the form of a report dealing systematically with all
relevant steps. The rationale for all decisions and the nature of assumptions should be made explicit. Most important
in the documentation is identification of the specific projects which development contributions will fund.
The Planning Scheme
A properly researched and documented Development Contribution Scheme can have force or effect as a Council
adopted policy. Meaningful consultation during preparation with land owners and the wider community can provide
extra legitimation.
However, if a contribution is required on a 'per dwelling' basis obviously the planning scheme must make provision for
this. It could either require a permit for dwellings; having a condition requiring a contribution, or require a contribution
on issue of Building Approval. Similarly when a contribution is required on a 'per lot' or 'per unit of land area' basis a
permit must be required for subdivision.
Where development contributions relate to open space, the open space requirements must be in the planning scheme as
opposed to the 'default' Subdivision Act requirements.
In most cases it will be desirable to amend the planning scheme to make explicit the development contribution
requirements.
Briefly, the alternatives are:
• stating the nature of required contributions and their timing in the scheme;
• requiring an agreement to be entered into;
• specifying that development contributions may be considered in issuing e permit;
• incorporating the Development Contribution Scheme document.
Enforcement
It follows from the foregoing that enforcement of development contributions may be by:
• where no permit is required, reliance on the planning scheme provisions or an agreement under the provisions
of the planning scheme;
• where permits are required, reliance on provisions in a condition or an agreement required by a condition.
(R,f:280WPS021 Page 17
South Morang - Local Slructure Plan Infrastructure Funding Scheme
City of Whittlesea
The appropriate point in the development process to require, or levy, the development contribution will depend on both the nature of the need generating measure and the development process. This depends on whether new development occurs:
• contiguous with but separate from established areas on yet to be subdivided 'greenfields', and/or
• amongst or near established areas on existing subdivisions.
Greenfield Development
This is the simple case. The area of land being subdivided can be readily identified and informed assumptions made about the future number of dwellings (given likely densities). In this case the point at which the contribution is required will be at the point of subdivision:
• on each lot capable of having a dwelling (lots with existing dwellings are exempt); or
• per hectare of land being subdivided.
Where residential densities are likely to vary between sub-areas in a new subdivision it may be desirable to exact the contribution differentially. That is, the cost of constructing the basic distributor road network and a portion of the arterials may be required on a per-area basis, while for local and higher-order community facilities, contributions can be required on a per lot basis.
Development Amongst Established Areas
. . , , .. '" ..... ..... , ........... , ,.,. . .. .. . .. . , 1 • ' •
In 'country towns' or in settlements where there has been subdivision in the past, there may be a large number of vacant lots scattered amonysl existing settlements. Where these towns are on the fringe of urban settlements (or within the • commuting field1 the accelerating development of these existing, vacant lots will create no less pressure on infrastructure than development of 'greenfield' areas. In such a case (since the opportunity to levy at the subdivision stage has passed) it may be necessary to require contributions at the dwelling approval stage.
If development is occurring both in existing areas and on fringe 'greenfields' the responsible authority will have to _; devise a scheme that appropriately differentiates. It is desirable to require. contributions at the subdivision stage.
However, if it is decided that development on the stock of existing lots will be such that pressure on infrastructure will be intolerable and fall unevenly, then contributions should also be required at the point where a dwelling is constructed on lots existing when the scheme is adopted. In this case, if the contribution has been made at the subdivision stage, the first dwelling on each new lot would be exempt, but subsequent dwellings on the lot {in a medium density development, for example) would be levied.
Contributions In-kind
The development contribution scheme distributes the cost of 'nexus' infrastructure on a fair bcfsis. The contributions are designed in the first instance to be cash payments made at the time of development (eg. at the point of land subdivision, construction, or occupation of dwellings).
However, developers should be encouraged to provide infrastructure directly. This has the advantage of lessening the financial impact on development because developers will bring infrastructure on·line in such a way that the marketability of their product is enhanced. They are also able to internalise the 'profit component' of infrastructure provision, that is, the cost to the developer is the wholesale price.
(Ref:280WPS02 I Page 18
City of Whittfesea
In order that the integrity of the development contribution scheme is preserved the following principles apply:
• the in-kind contribution must be an item of infrastructure which has been costed into the development contribution scheme; and
• the financial value of the contribution is the cost estimate in the development contribution scheme.
In-kind contributions can be land, buildings or structures providing the above principles apply. A major pitfall to avoid is accepting an in-kind contribution for non-costed infrastructure such as an item, or portion of an item, that has been discounted when initially formulating the scheme. Recall that the discounts relate to:
• the extent to which 'external benefits' are produced; • the extent of use by existing development; • the extent of use by outside development.
The effect of accepting in-kind contributions which relate to non-costed items (or the non-costed portion of items) is to leave a shortfall in the scheme and to provide a 'bonus' for the agencies responsible for funding (ie. the 'other sources'
funding).
Of course, this can be redressed by the agency undertaking to reimburse the scheme at a future point in time. This can be achieved by a cash contribution or by taking responsibility for items of equivalent value in the scheme.
Accountability
•
•
Once the detail of a development contribution scheme has legal force as a provision in a Planning Scheme, condition on a planning permit or in an agreement made under Sl 73 of the Planning and Environment Act
1987 the Council becomes publicly accountable to both the developer and residents to ensure that f acifities and services are provided as described in the scheme. Rational and efficient administrative procedures are required to enable these obligations to be fulfilled.
Following the preparation of the scheme, which will define the scope of the works, and the forecast expenditure timeframe, and the adoption of a means for legal implementation (Planning Scheme, Permit Condition, S173 Agreement) negotiations with the developer should decide the form of the contribution (whether as a payment or contribution in-kind).
Expenditure of the contributions should be only on works in the scheme (ie. consistent with the notion of 'hypothecation l within the agreed timeframe and as authorised by a resolution of Council;
All accounting for the receipt of revenue, expenditure and balance of reserves should be in accordance with the Local Government Act 1989, and appropriate Regulations and Accounting Standards, particularly AAS 27. These require the proper collection of due monies, arrangement for appropriate secority, correct expenditure and appropriate authorisation and control over assets owned by or in the custody of the Council. In addition, they provide for public access to information and consistent reporting procedures. These include minutes, agreements, permits, annual reports, financial statements and supporting information. Specifically:
The development contribution, however received, whether cash or in kind, should be treated as operating revenue in the Consolidated Operating Statement. {Contributions from
Page 19
City of Whittlesea
developers, as distinct from ratepayers. should be treated as revenue when the Council
obtains control over the assets comprising the contribution).
A development contribution scheme reserve fund should be created as a transfer to reserves
in the Statement of Changes in Equity separately in respect of each scheme. See Appendix
C for the detail to be contained in each such fund.
• The Councils' financial processes and reports are to be audited by external auditors in accordance with the
standards and Regulations.
Open Space
Open space has been excluded from the development contributions framework on the grounds
that tried and tested means for its provision exist in the Subdivision Act. The requirement is for 5% of land lor cash
equivalent) to be provided unless the planning scheme makes provision for a different amount.
Local open space is still required at a rate of 8% to enable VicCode and other appropriate planning criteria to be met.
Encumbered land requires more flexibility to provide the same level of recreational utiiity as unencumbered land. It is
estimated that in the order of double the area is required.
An appropriate benchm2· atio is 5% unencumbered land to 3% encumbered for a total of 8%. Thus the range of
options is:
B 4% 5% 9%
c 3% 7% 10%
D 2% 9% 11 %
E 1% 11 % 12%
F 0% 13% 13%
When less that 8% of land is required on a particular parcel a cash contribution is payable. However, land
compensation legislation results in acquisition costs being higher per unit area than cash in lieu of land payments;
generally in the order of 1.5 times higher. Thus. where cash contributions are made they must be 1 .5 times the value
of land unable to be provided.
It is therefore appropriate to include provisions in the planning scheme along the lines:
"Open space shall be provided at a rate of 8% of the land being subdivided with a maximum of 3% encumbered land. The responsible authority may consent to less than 5% of unencumbered land provided any deficiency is compensated by double the amount of encumbered land" Local open space shall be provided generally in accordance with the Local Structu.re Plan and Vic Code to the satisfaction of the responsible authority. In instances where less than 8% of land is required the responsible authority may require a cash contribution equivalent to the value of the land which is the subject of the reduced requirement multiplied by a factor of 1.5 to enable equivalent land to be purchased elsewhere".
I Ref:280WPS02 I Page 20
South Morang • Local Structure Plan Infrastructure Funding Scheme
City of Whitt!esea
It is recommended that this report become an appendix to the Local Structure Plan and incorporated for information
purposes and that the specific requirements for development contributions be included in the zone provisions of the
planning scheme.
The provision for the western precinct might be along the lines:
"The owner of the land shall enter into an agreement to the satisfaction of the responsible authority
to provide for a development contribution to be made to a value of$ ... per hectare of land being
subdivided either by payment of cash or by direct provision of 1i1frastruct11re items in accordance
with the local Structure Plan. "
For the eastern precinct the contribution will be a per lot figure (excluding the first lot).
Findon Road • Unfunded Portion
A problematic aspect is the unfunded portion of Findon Road (50%), for which it is difficult to justify development contributions as a source of funding.
Options to address this issue are:
delay development of the area;
fund from other council resources or borrc·:1ings;
delay development of specific parcels affected while negotiating VicRoads funding for the regional component.
The deletion of the Findon Road alignment is not a viable option.
Council's Funding Obligation
The Council will of course be responsible for providing a full range of community infrastructure to be funded from
general rates, grants and other sources. Development contributions in this policy are limited to the minority of capital
items which have a close nexus with the actual development of land.
1Ref:280WPS021 Page 21
City of Whittfesea
ft is recommended that the development contribution in the Eastern Precinct be set at $6,060 per hectare (equivalent
to $404 per lot at 15 lots per hectare).
ft is recommended that the development contribution applicable to the National Mutual area of the Western Precinct be
set at $42, 943 per hectare (equivalent to $2,863 per lot at 15 lots per hectare).
ft is recommended that the development contribution applicable to the Western Precinct outside the National Mutual
area be set at $42,566 per hectare (equivalent to $2,838 per lot at 15 lots per hectare).
!Ref:2BOWPS02 I - · • Page 22
City of Whiftlesea
Sound fiscal planning for a development area includes appropriate development contributions.
In the western precinct a per hectare contribution ($42.566 per ha.) encourages higher densities.
Findon Road - the 50% regional portion cannot be part of the scheme.
Most contributions will be in·kli1d.
Some borrowings to spread the cost over the period of the development contribution scheme are appropriate.
Open space should be considered separately and set at 8% with a higher rate applying to encumbered space to
preserve its recreational utility.
Cash-in-lieu of land for open space to be increased by a factor of 1.5 to enable equivalent land to be purchased.
The recommendations of the Minister's Review (2 tier contributions) can be accommodated.
In the event that the development contribution is set at any figure less than required to return the fund to zero, a
special rate on the area should be considered.
The recommended contributions are:
Page 23
APPENDIX A
COSTINGS INFORMATION
ROAD COSTINGS
Name Category
Landscaping
Landscaping
landscaping
lnfrascroctuff fund111g Policy
City of WhittfeS11a
$ 675 per linear metre 0.1
$ 1,800 per linear metre 0.0
$ 1, 110 per linear metre 0.0
$1, 100 per linear metre 0.0
$380 per linear metre 0.91
$1,300,000
$ 600,000
$ 600,000
Area Tora/
Developable Area: Main Roads:
Boulevard 14.1
Findon Road 8.1 Gordons Road (Sub-arterial) 3.5 N/S 1 3.2 N/S 2 3.6 Gordons Road (Collector) 6.8 Collector 1 2.1 Collector 2 2.7
Employment Areas 40.1
Open Space: Neighbourhood Park 46.8 Electrical Easements 13.9 Drainage Lines 23.7
Net Area 496.9
Cay of lln,11/e.tea
2.7
40.1
19.3
8.5
6.5
City of Wliittlcsca
ROAD CROSS SECTIONS
C11y of W/1iu/csea
2 l. 1
t0
- 1,1/
IND(:l\1 rco
PAG !-( lf·JG
COLLC:CTOR TYPE - A
WI Hi AO U 11 I NG /.,CC E SS
21.6 + PIPETRACK
5 5 __1 .., ___ 5_.s ___ I 5 8 1 a 5
,-1 >, .... ---r. v, , ;
·,,.: 2.3 1 3.5 , 1 r 3.5 ; 1.1 J PIPETRACK i)
1\6/
' l -------' c::J
VERGE INCL.
CYCLE PATH
I 22.0
'tr 2 • 5 5
NO AGUnlNG t-<CCESS

local structure plan - planning

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