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ARTICLE · 08 FEBRUARY 2012

Bank guarantees or bonds not required for voluntary planning agreements

Developers entering into Voluntary Planning Agreements are no longer required to pay up-front bank guarantees or bonds.

AustraliaReal Estate and Construction
Lucinda Morphett
Lucinda Morphett

In brief – Court of Appeal overturns decision in Huntlee v Sweetwater

A NSW Court of Appeal decision on 8 December 2011 in the matter of Huntlee Pty Ltd v Sweetwater Action Group Inc [2011] NSWCA 378 is good news for developers entering into voluntary planning agreements (VPAs).

Voluntary planning agreement relating to residential subdivision in the Lower Hunter region

The case related to a proposed residential subdivision in the Lower Hunter region south of Branxton in New South Wales, comprising some 1,702 hectares of land, with an expected yield of 7,200 new residential dwellings, to be constructed over a period of 15 years.

As part of the project, the developer, Huntlee Pty Limited, entered into a planning agreement with the Minister for Planning and the Minister for Environment. Among other things, the agreement required the developer to dedicate 5,612 hectares of environmentally significant land for conservation purposes, provide a monetary

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