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ARTICLE · 15 DECEMBER 2011

VPAs (voluntary planning agreements) become less risky, less complex, and more effective

The case returned the legal position to before July 2011, and restores certainty and commerciality to the VPA process.

AustraliaReal Estate and Construction
Aaron Gadiel
Aaron Gadiel

The NSW Court of Appeal has unanimously reversed a July decision by the Land and Environment Court regarding the 7,200 home Huntlee New Town development, located south of Branxton.

The original Land and Environment Court decision centred on a number of issues, but relevantly for present purposes, whether the former Planning Minister (Tony Kelly) took into account an irrelevant consideration, namely a voluntary planning agreement that was alleged not to provide for the enforcement of the agreement "by a suitable means", this being a requirement of the Act.

The Developer had been due to pay $200,000 by 31 January 2012. The Developer was also due to pay $900,000 in six annual instalments of $150,000, with the first instalment due on 31 January 2014. No security was required to be lodged in advance of the actual cash payment. The obligation to pay was not linked to the release of a subdivision, construction or occupation certificate.

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