Developer's frustration at council delays that are 'costing millions'

Mr Lane had a couple of large projects in Eden as well as in Tura Beach and Merimbula, but was frustrated by the time taken to get approval from Bega Valley Shire Council.

"Every DA is held up; this is the worst council I have ever experienced in Australia," Mr Lane said.

He said he was not alone in his view of council.

"There is zero care, zero responsibility and no accountability," he said.

Mr Lane said he couldn't get "any right answers" about the delays and that DAs were taking years rather than months to go through the approval process.

"In some instances, council will take three to four months prior to issuing an invoice so they can upload the application into their system. This ultimately restricts the cashflow within council that would assist in solving their internal resourcing issues," Mr Lane said.

It has resulted in Justice Fox Property taking Bega Valley Shire Council to the Land and Environment Court because there had been no activity on an application for 40 days. A DA for seniors housing in Lakewood Drive Merimbula has been in the Land and Environment Court for about seven months at cost to both the developer and council.

He said continuing to work in the Bega Valley meant potentially taking another six construction projects to the Land and Environment Court for resolution.

"We want the public to know this is to the detriment of the community. Ratepayers are funding the council in defending the approval of DAs where the design is a permissible use within the zoning," Mr Lane said.

In answer to questions about the delays, Mr Lane said council told him they were still dealing with the effects of the bushfires, COVID and a lack of resources.

He said these were the same reasons he had been given over the last three years.

"Council and insurers should have worked together on a fast track program to assist families who suffered catastrophic loss of homes, livestock and in some cases lives, but to still hear these people have not had homes reconstructed is unforgivable. There should have been a special team dealing with just that."

For some time council has talked about staff shortages, particularly planners, at a time when there were a number of large DAs to be assessed.

"It's management's job to solve staffing shortages. Why are they using the same excuses for three years?" Mr Lane said.

"We are trying to create local employment opportunities in addition to solving a housing shortage in the local area, but how can the developer absorb extortionate holding costs that are a direct result of council's inability to manage their own internal resources."

Mr Lane said holding costs, the interest being paid on loans taken out for the development, could run into millions of dollars over the course of a year's delay.

"As a developer the holding costs are significant, particularly if you are working with lenders charging higher interest rates due to holding land banks whilst obtaining approvals," Mr Lane said.

A $10million development can turn into an $11million development with unexpected delays of a year. A further delay of another year brings with it another $1million in interest payments. However delays across a number of more extensive projects can mean costs escalate by tens of millions of dollars.

"I would rather pay double the fees to council for the DA assessment and have a guarantee that it would be completed within four months," Mr Lane said.

"That way the council have the funds to attract contract planners that would ultimately produce a better outcome for the applicants. More importantly, it would give Bega Valley Shire Council a glowing report in terms of processing application times.

"There are thousands of people affected by these delays through trades and suppliers not being able to provide services, loss of opportunities for affordable housing by way of sub-division. Without progress the the economy isn't being stimulated.

"This council is starving the community of opportunity," Mr Lane said.

Mr Lane said his current projects included a new development at 19-21 Weecoon Street for commercial and shop top housing, tier one retailers plus a hotel and a vast array of community facilities. There were three stages and stage one was valued at more than $67million.

He also had a sub-division planned for land above Cattle Bay, a senior living project development in Lakewood Drive, Merimbula and was already developing Eden Cove and areas in Tura Beach and Bega.

"The Sapphire Coast is beautiful, Eden has the deepest port along the east coast and that's a huge driver for the economy with the largest cruise ships able to come in.

"Eden deserves to be put on a pedestal and we want to build a great facility across from the cruise terminal. There will be apartments, tier one retailers, a hotel, public seating, walkways for families to move around and enjoy the area," Mr Lane said.