Late Agenda of Ordinary Meeting of Council

Ordinary Meeting of Council

TO BE HELD ON Tuesday, 21 November 2023 AT 7:00PM

Level 3, Council Chamber

Late Agenda

** ** ** ** ** **

NOTE: For Full Details, See Council’s Website –

www.krg.nsw.gov.au under the link to business papers

MM.1 Letter from the Minister for Planning and Public Spaces 5

File: S12198

Yesterday on Thursday 9th November, Ku-ring-gai Council staff and the Mayor received a letter from the Minister for Planning and Public Spaces The Hon Paul Scully MP (dated 30/10/2023, see attachment 1).

In summary, this letter states that:

· As part of the National Housing Accord, the NSW Government is committed to commence the construction of 377,000 new homes by 2029;

· There is a ‘limitation’ in 33 out of 35 Greater Sydney Local Environment Plans (LEPs) that prevents terraces, townhouses, and residential flat buildings (i.e. manor houses) from being built in R2 Low Density Residential Zones;

· There is a ‘limitation’ in 53% of Greater Sydney LEPs that prevents residential flat buildings (i.e. apartments) from being built in R3 Medium Density Residential Zones;

· All Councils are called to immediately play their part in identifying locations which permit more low and mid-rise homes; and

· The letter be tabled at the next Council meeting so that the State government’s intentions are clear to Councillors.

The letter is ambitious and given the timing of the next Council meeting (with registrations to speak at the public forum due 5pm Monday 13th November), I thought it would be important to make this letter available to the public as soon as possible by way of Mayoral Minute so that residents can consider and make representations regarding the letter.

It is my understanding that Council staff may provide more detailed commentary as a late item to the November Ordinary Meeting of Council or as an item for the December Meeting. In the interim, I will provide my initial thoughts below:

· I believe that any change to local zoning and/or any changes to what is permitted to be built within a zone should go through a public consultation process. Our residents want to have a say in what should be built and where.

· I have concerns about what we are seeing in other Local Government Areas (LGAs) where the residents and the Council have formed a view on what can be supported within a particular area, only for the state government to override and impose greater density.

· I recognise that there is demand with some residents of Ku-ring-gai for townhouses as a downsizer’s housing option. We have residents who do not require large gardens or large homes, but do not want to live in a small apartment either. As a Council, we should consider whether the preference for townhouses can be sympathetically accommodated, however I do not think allowing townhouses in R2 Low Density Zones is the right solution.

· Ku-ring-gai’s current approach is for standalone houses in R2 Low Density, multiple homes including townhouses in R3 Medium Density, and apartments in R4 High Density. This approach is intuitive for residents and easy to apply. I therefore have concerns about the hinted-at proposal to put townhouses in R2 Low Density Residential Zones and apartments in R3 Medium Density Residential zones. It is a shifting of the goalposts that will have unintended consequences such as:

o Significantly increasing Ku-ring-gai’s human population without necessarily the funding for or provision of adequate infrastructure (transport, stormwater, education and recreation) to support the increase.

o A significant loss of tree-canopy in Ku-ring-gai, which is vital to protecting our biodiversity as well as to support our climate-change resilience.

o A permanent change in the character of our LGA, including potential impacts to our heritage conservation areas.

· From an achievability perspective, it will be difficult for councils to undertake such a rezoning program on short notice. Each program requires significant unbudgeted resourcing (financial and human capital), and there are already industry-wide shortages of town planners and other people with relevant capabilities (with many seeking higher pay in the private sector or State Government).

· Further down the supply chain, there is also a similar industry-wide bottleneck for appropriately skilled people to assess Development Applications as well as bottlenecks with sourcing the right skills and equipment to commence construction of these homes up to an acceptable standard by 2029. The activity may fuel further inflation.

· Council has previously explored options for additional housing diversity through the Local Strategic Planning Statement and Local Housing Strategy, however, there needs to be appropriate public consultation before any of these elements are revisited.

· It appears ambitious to expect Council to effectively implement these changes in a short 2 year 9 month Council term (and with caretaker mode commencing in 9 months’ time on 16 August 2024). The reality is that most of the relevant decisions may have to be made by a new set of Councillors in early 2025 at a time when they are not adequately familiarised with the situation or with industry terms.

As Mayor, I do have these concerns plus much more. My suggestion is that we should wait for further feedback from Council staff before taking the next step, and in the meanwhile we should be open to public feedback on this matter.

Recommendation:

A. That Council notes this mayoral minute and awaits further feedback and recommendations from Council staff on the implications of the Planning and Public Spaces Minister’s letter.

B. That following the feedback from Council staff, the Mayor writes to the Planning Minister to outline Council’s concerns on the feasibility of what is proposed.

GB.4 Lindfield Village Hub Recommendation to enter into a Project Delivery Agreement 10

File: S12165-4-6

To recommend that Council resolve that the Preferred Proponent (Proponent A) be nominated as the Successful Proponent subject to finalisation of outstanding matters, and to authorise the General Manager to finalise and then execute the Lindfield Village Hub Project Delivery Agreement (PDA) with that party.

Recommendation:

That subject to resolving outstanding matters, Council authorise the General Manager to finalise and then execute the PDA and associated documents, sell the land on the Lindfield Village Hub site as identified in this report, and affix the Council Seal to necessary documents.

GB.20 Lindfield Village Hub Withdrawal of Commuter Car Park Grant Funding by TfNSW 19

File: S12165-4-6

To advise Council that the $9.8m grant funding for the LVH commuter car park has been withdrawn by TfNSW.

Recommendation:

That Council:

A. Authorise the General Manager to implement the Action Plan at Confidential Attachment A1.

B. Make urgent representations to the NSW Government seeking a commitment to continue to fund the Lindfield Village Hub commuter car park.

C. Defer the decision to enter into a Project Delivery Agreement and report back to the December Ordinary Meeting of Council.

Ordinary Meeting of Council - 21 November 2023	MM.1 / 1

Item MM.1	S12198

Mayoral Minute

Letter from the Minister for Planning and Public Spaces

In summary, this letter states that:

· As part of the National Housing Accord, the NSW Government is committed to commence the construction of 377,000 new homes by 2029;

· There is a ‘limitation’ in 53% of Greater Sydney LEPs that prevents residential flat buildings (i.e. apartments) from being built in R3 Medium Density Residential Zones;

· All Councils are called to immediately play their part in identifying locations which permit more low and mid-rise homes; and

· The letter be tabled at the next Council meeting so that the State government’s intentions are clear to Councillors.

o A significant loss of tree-canopy in Ku-ring-gai, which is vital to protecting our biodiversity as well as to support our climate-change resilience.

o A permanent change in the character of our LGA, including potential impacts to our heritage conservation areas.

Recommendation:

A. That Council notes this mayoral minute and awaits further feedback and recommendations from Council staff on the implications of the Planning and Public Spaces Minister’s letter.

B. That following the feedback from Council staff, the Mayor writes to the Planning Minister to outline Council’s concerns on the feasibility of what is proposed.

Councillor Sam Ngai

Mayor

Attachments:

A1 ⇩

Letter from the Minister for Planning and Public Spaces, The Hon Paul Scully MP - housing strategy

2023/361968

Ordinary Meeting of Council - 21 November 2023	GB.4 / 1

Item GB.4	S12165-4-6

Lindfield Village Hub
Recommendation to enter into a
Project Delivery Agreement

EXECUTIVE SUMMARY

purpose of report:	To recommend that Council resolve that the Preferred Proponent (Proponent A) be nominated as the Successful Proponent subject to finalisation of outstanding matters, and to authorise the General Manager to finalise and then execute the Lindfield Village Hub Project Delivery Agreement (PDA) with that party.

background:	A procurement process was undertaken over several years to identify a suitable party to deliver the Lindfield Village Hub project. At the Ordinary Meeting of Council held 14 February 2023, Council resolved to enter exclusive negotiations with ‘Proponent A’, being the Preferred Proponent. Through exclusive negotiations the terms and conditions of a Project Delivery Agreement have now been resolved to the point where Proponent A can be recommended to Council as the successful Proponent, subject to finalisation of some outstanding matters.

comments:	Following execution of the PDA, the project commencement and Successful Proponent will be announced to the public.

recommendation:	That subject to resolving outstanding matters, Council authorise the General Manager to finalise and then execute the PDA and associated documents, sell the land on the Lindfield Village Hub site as identified in this report, and affix the Council Seal to necessary documents.

Purpose of Report

Background

Planning for Ku-ring-gai’s future

Following more than 10 years of planning and community engagement, Council has now finalised negotiations with a Preferred Proponent (developer) to deliver the Lindfield Village Hub (LVH).

The project will transform a utilitarian car park into a new and exciting place where the Ku-ring-gai community can socialise, experience, and participate. It will bring new life to an area that for too long has been in decline economically, socially, and visually.

The success of this project shall lay the foundations for other local centre redevelopments planned for Turramurra and Gordon, demonstrating that Ku-ring-gai Council can deliver complex projects providing for the present and future needs of our community.

The LVH project will provide much needed new community facilities on the site of the current Woodford Lane car park in Lindfield including a new library, community centre, childcare facility, plaza and park, and commuter and community car parking. The project will create significant community benefit by revitalising the west side of the Lindfield town centre and creating social and economic renewal of the area.

The new library will meet the future needs of our community as a hub of learning and social connectedness and the community centre shall provide a wide range of meeting rooms for community use from small group meeting to larger catered events. The urban park onto which the library shall open extends the number of green open space areas available to the local community. The project will provide an array of places including: a generous grassed area where people can relax in nature; and a Library zone adjacent to the park where people can sit and study in a natural outdoor environment. The plaza shall provide a diverse space including for ad hoc community events and activities, a place for people to meet and congregate, and support alfresco dining for adjoining cafes and restaurants.

The project contributes to the Greater Sydney Commission’s strategic planning objectives for Sydney through provision of residential apartments, and retailing including a supermarket, park side dining and shopping. Its proximity to Lindfield Station and local bus routes promotes the use of public transport and the reduction of reliance on private vehicle journeys.

Procurement and Planning Summary

The procurement process began in 2018/19 when an Expression of Interest (EOI) process was conducted. Concurrently with the EOI and subsequent tender process, a new Planning Proposal was undertaken for the site.

In early 2020 a tender process occurred that unfortunately coincided with the COVID pandemic and this detrimentally impacted on the outcome.

In June 2020, Council resolved to decline to accept any tenders in accordance with Clause 178 (3) (e) of the Local Government (General) Regulation 2005, authorising the General Manager to enter into negotiations with ‘any possible providers’.

The first round of post tender negotiations did not result in a viable outcome. In December 2020 Council resolved to review the project objectives and to continue negotiations.

Following the project review, an alternative procurement approach commenced in late 2021 known as the ‘Select Market Engagement’ (SME) Process. The first stage of the SME Process was a non-binding Request for Preliminary Proposals (RPP) which took place at the end of 2021. The RPP submissions indicated a potentially viable outlook for the project. This gave confidence to move to the next stage, being the Request for Detailed Proposal process (RFDP process).

The revised Planning Proposal process for the site resulted in amendment no.28 of the Ku-ring-gai Local Environmental Plan (LEP), published in March 2022, and the amended LVH Development Control Plan (DCP) was published in May 2022.

The RFDP commenced on 19 April 2022 and closed on 19 July 2022. The submissions were assessed with O’Connor Marsden acting as external probity advisors.

On 14 February 2023 Council resolved to commence exclusive negotiations with ‘Proponent A’.

Exclusive negotiations with Proponent A have taken place since that time resulting in a viable outcome and leading to a suite of transaction documents in the form of a Project Delivery Agreement and annexures.

Comments

Overview of Project Components

The project comprises two main components as follows, subject to development consent:

Community Component (ownership retained by Council on Completion)

Library & Community Centre	2,450 m² Gross Floor Area GFA
Childcare facility	550m² GFA
Public Domain	min 3,000m² park & 900m² plaza
TfNSW Commuter Carpark	135 spaces
Car parking	Comprising: · To replace existing parking on the site, there will be 109 ‘replacement’ car spaces shared on streets immediately adjacent to the site and provided in the LVH basement (the basement spaces will be owned by the retail lot and contiguous with the retail car spaces) · Community Facilities car spaces - to statutory requirements · Childcare car spaces - to statutory requirements
External works	A range of traffic infrastructure works on adjoining streets that may be required, plus other works external to site boundary including to Woodford Lane, Drovers Way, Bent St, Beaconsfield Pde

Developer Component

Residential apartments	· Approx 14,872 m² GFA (~128 apartments) within FSR and Height of Building LEP controls
Retail component	· Supermarket and Specialty Retail (DCP min requirement 5,000m²)
Retail car parking	· To statutory requirement
Residential car parking	· To statutory requirement
Traffic Infrastructure Works (Final scope Subject to Consent Authority conditions)	· A range of traffic infrastructure works on adjoining streets that may be required subject to development consent conditions

Transaction Documents

The following key documents are provided as confidential attachments to this report:

- Project Development Agreement (PDA), including at Schedule 3, the Table of Minimum Requirements - Confidential Attachment A1

- Design and Construct (D&C) contract Community Component - Confidential Attachment A2

- Masterplan - Confidential Attachment A3

- Principal’s Project Requirements (PPR) - Confidential Attachment A4

- Project Performance Brief (PPB) - Confidential Attachment A5

For further information refer to the attached Overview of Transaction Documents & Status of Exclusive Negotiations provided at Confidential Attachment A8.

Key Commercial Terms

An Overview of Key Commercial Terms is provided at Cl 1.1.3 of the report ‘Analysis of Key Project Risks’ provided at Confidential Attachment A6.

Project Delivery Agreement (PDA)

The PDA is the core document for the delivery of the project. It sets out the overarching framework for the design and delivery of all works on the site, including:

· how risk, cost and return is allocated between the parties

· the fundamental layout, design and deliverables for the project and how that is developed and may change throughout the course of the project

· the processes and standards that must be followed in delivery of the project, including approvals to be obtained, requirements for contractors and consultants, standards for the delivery and timing for completion of works

· how the site will be reconfigured into new lots as the works are constructed and what easements and other rights will be recorded on title to the land

· the process for the sale and leasing of the residential apartments and commercial property developed on the site

· how the project may be terminated and what consequences follow if that occurs

A more detailed summary of the PDA and its operating provisions is provided in the attached report’ Lindfield Village Hub - Project Delivery Agreement - Overview’ provided as Confidential Attachment A7.

Sale of Land

The Lindfield Village Hub site currently comprises 27 different separately titled lots of land, all owned in freehold by Council. As part of the development, these lots of land will be consolidated and subdivided to form the final title structure for the project. On completion of the project Council will sell various lots to facilitate the retail and residential development and will retain ownership of all other lots.

Design Development

The PDA requires the developer to ensure the design of the project is progressed consistently with a set of fundamental requirements of Council, referred to as the ‘Development Specifications’. These requirements are set out in the Master Plan, the Principal’s Project Requirements (PPR), the Project Performance Brief (PPB) and a short table of Minimum Requirements.

Together these set out fundamental design and deliverables, such as building locations, heights, land use, certain materials that must be used in the project, car parking requirements and the locations of the public park and plaza.

Development Application

The developer will prepare and submit a development application, which will be assessed in accordance with the relevant statutory provisions. The determination of the development application shall be made by the Sydney North Planning panel (SNPP).

Development Program

The Preferred Proponent provided an implementation program that would see the project completed in 2028.

Outstanding Matters

A small number of outstanding matters are still to be resolved. Council considers these matters important to manage risk and ensure the successful delivery of the project and expected public benefits.

Refer to the attached Overview of Transaction Documents & Status of Exclusive Negotiations provided at Confidential Attachment A8 including details of the outstanding matters.

integrated planning and reporting

P4 Places, Spaces and Infrastructure (S&E)

P5 Local Economy (MPU)

Community Strategic Plan Long Term Objective	Delivery Program Term Achievement	Operational Plan Task
P4.1 Our centres offer a broad range of shops and services and contain lively urban village spaces and places where people can live, work, shop, meet and spend leisure time E1.1: Ku-ring-gai is an attractive location for business.	P4.1.1 Plans to revitalise local centres are being progressively implemented and achieve quality design and sustainability outcomes in collaboration with key agencies, landholders and the community (S&E) E1.1.3 Secure a development partner for Lindfield Village Hub (MPU)	P4.1.1.2Progress public domain streetscape plans for key local centre precincts such as Lindfield, Gordon and Turramurra. P4.1.1.5: Finalise Public Domain Plans for St Ives, Roseville, Lindfield and Pymble. P4.1.1.8 Integrate all transport modes for the primary local centres through the Public Domain Plan, traffic and transport studies in collaboration with Transport for NSW. E1.1.3.1: Progress negotiations with prospective developers for the Lindfield Village Hub.

Community Strategic Plan Long Term Objective

Delivery Program

Term Achievement

Operational Plan

Task

P4.1

Our centres offer a broad range of shops and services and contain lively urban village spaces and places where people can live, work, shop, meet and spend leisure time

E1.1: Ku-ring-gai is an attractive location for business.

P4.1.1

Plans to revitalise local centres are being progressively implemented and achieve quality design and sustainability outcomes in collaboration with key agencies, landholders and the community (S&E)

E1.1.3 Secure a development partner for Lindfield Village Hub (MPU)

P4.1.1.2Progress public domain streetscape

plans for key local centre precincts such as Lindfield, Gordon and Turramurra.

P4.1.1.5: Finalise Public Domain Plans for St Ives,

Roseville, Lindfield and Pymble.

P4.1.1.8 Integrate all transport modes for the primary local centres through the Public Domain Plan, traffic and transport studies in collaboration with Transport for NSW.

E1.1.3.1: Progress negotiations with prospective developers for the Lindfield Village Hub.

Governance Matters

Progress of the project procurement and key issues for consideration have been reported through the Major Projects Governance structure, which includes the Major Projects Steering Committee (MPSC), the Major Projects Advisory Committee (MPAC), the Major Projects Councillor Consultation Forum (MPCCF), and the Ordinary Meetings of Council (OMC).

Key outputs of the Governance process as set out below.

Capital Expenditure Review

The Office of Local Government has determined that Council has satisfactorily addressed the criteria set out in the Office of Local Government’s (OLG) Capital Expenditure Guidelines. The OLG letter is available as Confidential Attachment A9.

Probity Certification

A probity advisor O’Connor Marsden was retained by Council throughout the procurement process to assure probity of process, providing several probity reports to Council at key procurement milestones, each confirming that there were no probity risks which had not been appropriately managed. A final Probity Certificate is available as Confidential Attachment A10.

MPAC Report

As part of the Governance framework applying to the Project’s procurement, there has been periodic reporting to the external advisory body known as the Major Project Advisory Committee (MPAC). On each occasion the MPAC have reviewed the work undertaken by staff and provided an independent report direct to Council. The final MPAC report to Council is available as Confidential Attachment A11.

Risk Management

A comprehensive risk assessment has been undertaken by Deloitte for the development phase of the project. The report ‘Analysis of Key Project Risks' is provided at Confidential Attachment A6.

A number of risk categories were identified to provide a framework for the project risk assessment, including site risks; planning, legislative, government risks; design, construction and commissioning risks; financial / security risks; market risks; network / interface risks; industrial relations risks; force majeure; risks associated with asset ownership; Council operational / probity risks; and stakeholder risks.

The key driver was understanding of the key risks associated with the development phase of the project in the context of key terms contained within the draft project documentation. The legal and commercial framework provides a comprehensive structure of risk management measures and mitigation strategies.

The risks are considered to be acceptable given the risk mitigation elements incorporated in the project.

Financial Considerations

The future costs to construct and fit out the community facilities, public domain and external works, after allowing for project management, construction contingencies and escalation, is in the order of $85m. Once complete, the additional cost to operate and maintain the public facilities is estimated to be approximately $2m pa higher than for the existing facilities that would be replaced.

These capital and ongoing operating costs would be fully funded by a combination of the rights fee from Proponent A, a contribution of $9.8m towards commuter parking by Transport for NSW, Council development contribution funds of $17m, and the proceeds from the future sale of the existing Lindfield Library site. This is consistent with the Council resolution of 14 February 2023.

More detail on the project costs and funding is provided at Confidential Attachment A12.

Social Considerations

The social objective of the Lindfield Village Hub project is to revitalise the western side of the Lindfield local centre through the provision of a mix of green public open space and community buildings including a library and community centre, underground car park, a town square, new housing, dining, and retail outlets.

Library and Community Facilities

Research work undertaken as part of the Community Facilities Strategy in 2018 highlighted that there are significant issues regarding existing branch library provision in Ku-ring-gai including inadequacies relating to facility size and condition and how these have limited the offerings available. The existing branch libraries were assessed against State Library standards and it was determined that in 2016, all branch libraries were ‘significantly below the recommended floor area standard and that with projected population growth in 2036 the libraries will be significantly below recommended standards’.

Lindfield Branch Library current floor area is 300m², the study recommended floor area resulting from projected population growth by 2036 as 1,374m². Similarly, community facilities were also found to be underprovided with average of 49m² per 1000 people compared with the recommended 80m2 which equated to a shortfall of nearly 1000m² in Lindfield catchment.

The Lindfield Village Hub project will deliver the vision for a mixed use Hub providing a focus for community activities which will reinvigorate the west side of Lindfield.

Open Space

The public domain areas of the Lindfield Village Hub (park & plaza) shall contribute to the available open space in the local centre. Library/Community Centre and the and café and restaurant areas alike shall face onto the public domain and an all ages and all abilities children’s playground .

Economic benefits

The project will deliver significant economic benefits to the local and wider community from both the construction and future retail and community facility operations.

Environmental Considerations

The project will be subject to environmental assessment during the development assessment process.

Community Consultation

The project has been through a wide range of community consultation processes over ten years.

From August 2018 to May 2019 Council involved the community in a broad discussion to extend understanding about the Lindfield Village Hub mixed use development, as a Council-led development providing new community facilities and enhanced social outcomes for the Ku-ring-gai and Lindfield communities and the key findings and outcomes were presented to Council at a briefing on 21 May 2019.

The key findings were also included in a report to Council in July and subsequently August 2019 that dealt with Council’s endorsement to lodge a Planning Proposal to amend the KLEP (LC) 2012 with respect to the height and Floor Space Ratio (FSR) provisions at the Lindfield Village Hub site.

Community were then engaged as part of the planning process where submissions were sought in relation to the Planning Proposal and a report considering submissions received was presented to Council in November 2021.

Summary

Following more than 10 years of planning and community engagement, Council has now finalised negotiations with a Preferred Proponent to deliver the Lindfield Village Hub (LVH). The project is fully funded.

This report recommends that Council resolve that the Preferred Proponent (Proponent A) be nominated as the Successful Proponent subject to finalisation of a number of outstanding matters, and to authorise the General Manager to finalise and then execute the PDA and associated documents, sell the land on the Lindfield Village Hub site as identified in this report, and affix the Council Seal to necessary documents.

Recommendation:

That subject to resolving outstanding matters:

A. Council authorise the General Manager to finalise and execute the Project Delivery Agreement for the Lindfield Village Hub project with the preferred proponent and delegate to the General Manager the authority to perform Council’s obligations therein, including finalising and executing all associated legal agreements and other documents.

B. Council sell the land on the Lindfield Village Hub site as required for the retail and residential lots in accordance with the terms of the Project Delivery Agreement.

C. The Council Seal be affixed to all necessary documents.

Geoff Douglas

Group Lead - Major Projects

Attachments:	A1	Confidential Attachment A1 - LVH - Project Development Agreement - Final for OMC report 5-11-23	Confidential
	A2	Confidential Attachment A2 - LVH - D&C Contract - Community Component - Final for OMC report 5-11-233	Confidential
	A3	Confidential Attachment A3 - 231010_LVH Masterplan_Final for PDA	Confidential
	A4	Confidential Attachment A4 - 08.11.2023 - LVH - PPR	Confidential
	A5	Confidential Attachment A5 - 08.11.2023 - LVH - PPB	Confidential
	A6	Confidential Attachment A6 -Analysis of Key Project Risks - Project Development Phase - Final for OMC Report 5-11-23	Confidential
	A7	Confidential Attachment A7 - Lindfield Village Hub - Project Delivery Agreement - Overview - Final for OMC report 5-11-23	Confidential
	A8	Confidential Attachment A8 - Overview of Transaction Documents & Status of Exclusive Negotiations - Final for OMC report 5-11-23	Confidential
	A9	Confidential Attachment A9 - Capital Expenditure Review letter from OLG - A881593	Confidential
	A10	Confidential Attachment A10 - LVH - 20231025_OCM Probity Certification_KMC LVH Negotiation Phase	Confidential
	A11	Confidential Attachment A11 - MPAC Report LVH Exclusive Negotiations Review Oct23 Final	Confidential
	A12	Confidential Attachment A12 - Financial Report - Final for OMC report 5-11-23	Confidential

Ordinary Meeting of Council - 21 November 2023	GB.20/ 1

Item GB.20	S12165-4-6

Lindfield Village Hub
Withdrawal of Commuter Car Park
Grant Funding by TfNSW

EXECUTIVE SUMMARY

purpose of report:	To advise Council that the $9.8m grant funding for the LVH commuter car park has been withdrawn by TfNSW.

background:	Reasons given were that there have been federal and state infrastructure reviews, funding has been decreased, and priorities have changed with the new government. TfNSW stated that NSW Government policy has moved away from commuter parking and government has reviewed the whole transport program and reallocated funding. In that context, TfNSW say they will not agree to the LVH project timelines and the Minister has made a decision to terminate the funding deed and seek reimbursement of the unspent portion the $9.8m grant money paid to Council in late 2021.

comments:	An action plan has been prepared for Council to consider.

recommendation: (Refer to the full Recommendation at the end of this report)	That Council: A. Authorise the General Manager to implement the Action Plan at Confidential Attachment A1. B. Make urgent representations to the NSW Government seeking a commitment to continue to fund the Lindfield Village Hub commuter car park. C. Defer the decision to enter into a Project Delivery Agreement and report back to the December Ordinary Meeting of Council.

Purpose of Report

To advise Council that the $9.8m grant funding for the LVH commuter car park has been withdrawn by TfNSW.

Background

In 2012 the NSW state government announced that Lindfield would receive 240 commuter car spaces funded by the state government. 105 of those spaces were funded by TfNSW and built by Council at the Lindfield Village Green Project.

Negotiations with TfNSW resulted in the execution of the Lindfield Village Hub Commuter Car Park Funding Deed in 2021. The full amount of grant funding ($9.8m) for the 135 spaces was paid by TfNSW to Council in Oct 2021.

This morning at a meeting with representatives from Transport for NSW Council staff were informed that the grant funding for the LVH commuter car park has been withdrawn.

Reasons given were that there have been federal and state infrastructure reviews, funding has been decreased, and priorities have changed with the new government. They said that NSW Government policy has moved away from commuter parking and the focus is now on improving public transport. The government has reviewed the whole transport program and reallocated funding. In that context, they say they will not agree to the LVH project timelines and the Minister has made a decision to terminate the commuter parking project.

TfNSW advised that they would not be able to confirm this in writing for a week or two.

Comments

Council resolved in October 2015 to include the commuter car park spaces as a mandatory requirement for the project. That resolution reflected strongly expressed community views that commuter car parking was important.

In the preparation of project feasibility studies leading to the decision to put the project to tender in 2019, the provision of commuter carparking and the TfNSW funding of it was always fundamental to the project brief and project commerce. Council’s procurement process conducted since 2019 included the commuter car park as a mandatory requirement.

During exclusive negotiations this year with the preferred proponent, Council have required them to design the commuter car park in accordance with TfNSW requirements. Council staff have been in regular contact with TfNSW during this time, and have kept them informed of progress, including submission of designs to TfNSW.

This Council meeting of 21 November 2023 was to consider the appointment of the preferred proponent as the project developer. The recommendation of agenda item GB.4 was that Council would enter into a Project Delivery Agreement with the preferred proponent. It was anticipated to be executed tomorrow, Wednesday 22 November 2023.

In light of the very late notice by TfNSW that the grant funding is withdrawn, that recommendation needs to be reconsidered.

Staff have prepared an Action Plan from this time forward which is provided as Confidential Attachment A1.

integrated planning and reporting