13/03/2022
📣 Media Release 📣
Whitsunday Council inaction delays court case
The company behind plans to develop a $1.1 billion master planned community in Bowen is increasingly frustrated with Whitsunday Regional Council’s ongoing confusion and bureaucracy gone mad.
GRW Group general manager Blake Thomas says the council’s actions during the past five years would be laughable if the project wasn’t so important to Bowen’s future.
“Unfortunately, this issue has the potential to cost every ratepayer in the Whitsunday Regional Council area more than $1000 each in costs,” said Mr Thomas.
Whitsunday Regional Council approved the 2000-dwelling Whitsunday Paradise project in October 2020, but the two organisations are locked into a legal battle about the amount of payment for a planned water reservoir and sewerage infrastructure.
GRW Group general manager Blake Thomas says the council wants the developer to pay twice for the same $20 million of infrastructure, which is a breach of the Planning Act 2016 and ministerial guidelines.
“Look, the simple fact is that Council’s own reports said they needed the reservoir in 2018 to meet current pressure requirements for both residential use and firefighting capacity,’’ said Mr Thomas.
“Anyone who lives in Bowen knows the current system just isn't up to scratch. This poses a serious risk to residents and ratepayers.
“Then magically two weeks before conditioning us to build the reservoir, they said they didn’t need it yet. This raises serious concerns about Council officers and elected officials discharging their duties.”
The sewer infrastructure concerns conditions to replace the current onsite sewerage treatment plant which is identified in WRC documents as trunk infrastructure.
“How Council thinks it can ask us to replace trunk infrastructure with 6km of pipes which will service the whole area, and then charge us to connect to it, is beyond belief,’’ he said.
Additionally, Mr Thomas says both WRC and GRW Group has received advice from the State Government that it was inappropriate for WRC to levy full rates for a sewer service they did not provide.
“This is a fee for no service that needs to be looked at in more detail. I wouldn’t be surprised if Council had to refund almost 20 years of proportional rates to the relevant landowners out there.”
In the latest move, Whitsunday Regional Council’s meeting 9th March, 2022 heard claims from council officials that the developer had asked for a 3-week adjournment in the court case.
But Mr Thomas says council inaction had caused delays in both the court case and in the project going ahead.
“We also have always said that we are always willing to negotiate with the council over the issue, but the council has refused to budge from its legally indefensible position.
Councillors at this meeting also stated the developer should start work on the project now to quickly help ease the Bowen region’s housing crisis.
Mr Thomas said this was also a ridiculous suggestion.
“If we start work on the project, we would be agreeing to the council’s ridiculous current terms and conditions,’’ he said. “There is no way we will be paying twice for the same $20 million of infrastructure.”
BACKGROUND MATERIALS FROM BLAKE THOMAS
When works can commence?
First, we are unable to enact an approval under appeal until the appeal is resolved. The Planning Act prevents this.
In addition to the appeal, we need approval from Department of Transport and Main Roads to start works on the sewer pipes. Ideally, we would have done this in collaboration with Council. Unfortunately, WRC officers were not willing to collaborate in the process.
We have gone to DTMR ourselves and are finalising the detailed designs for the relevant approval.
Status of Appeal
The matter had been set down for review by the court on 25 February. Prior to that, the parties were asked to nominate their experts. We had done so nominating to experts: infrastructure and civil engineering. Council responded with a planning expert, engineering expert and a third economist.
Our solicitors wrote asking why an economist was needed. It was our advice that the issues did not need an economics expert, and this would add unneeded costs on both sides.
Unfortunately, we did not receive a response before the 25th and had to ask for an adjournment.
We have just received a response this week and will be nominating a third expert. The matter will go to the judge next week.
Relationship
It is our desire to invest in the Whitsunday region. However, we do not have to invest in the area. As noted previously, we now have alternative options in high growth corridors with Councils keen to work with us.
As with anything in life, there has to be give and take. Given the very low levels of development in Bowen and the high level of housing demand, it might be a good time for Council to reassess their approach to their development partners.
History in relation to the water reservoir
The water reservoir was included in WRC’s infrastructure planning from 2018 until two weeks before they approved the Whitsunday Paradise project. In their justification report in 2018, WRC Planning Officers said the water reservoir was needed in 2018 but planned on delivering the reservoir in 2022-2026.
The reservoir was needed due to a lack of water capacity in the Bowen network which meant pressures did not meet legal requirements. On 14 October 2020, Council then resolved to remove the reservoir from their planning on the grounds it was not needed until after 2031 because of water savings and reduced demand.
The argument ignores the current water demand of the Bowen network, which is nearly double what the 14 October 2020 resolution states (500 litres per day vs actual use of almost 1000 litres per day. The demand issue is made worse by an almost record influx of people into the region, which is certain to add too existing demand.
Next steps
We cannot commence works until the appeal is resolved. There are additional issues in the STP, bonds and rates.
It might be a good time for the council to come back to the table and speak to us. Our team is available.
- ENDS-
For further media information contact Marshall Hall on 0404 195896 or via email at [email protected]
Whitsunday Regional Council
Bowen Independent
Daily Mercury
Courier Mail
Townsville Bulletin
Mackay and Whitsunday Life
Bowen Collinsville Enterprise - BCE
Bowen Chamber of Commerce Inc.