LAND USE PLANNING Does It Work? Or Is It Self Defeating? Stewart Wall Road Infrastructure Manager Logan City Council

The Disclaimer Entirely my own observations and opinions Not policy of my current or any former employer Purely an infrastructure based view of a very complex legislative, social and political issue Names and locations have been changed to protect the innocent and the guilty ……and it’s a little bit tongue in cheek!

Where Are We Going? History and background What’s the problem? A few examples Why do we get it so wrong? Is there a solution?

Legislative History Undue Subdivision of Land Prevention Act 1885 City of Brisbane Act 1924 City of Mackay and Other Town Planning Schemes Approval Act 1934 Local Government Act 1936 City of Brisbane Planning Acts 1959 & 1964 Local Gov’t Planning and Environment Act 1990 Integrated Planning Act 1997 Sustainable Planning Act 2009

Infrastructure Planning History Town Plans predate infrastructure planning/charging by several decades Late 1970s - water and sewerage headworks charging based on demand planning 1990s - some local governments introduce road headworks policies IPA (1997) requires comprehensive infrastructure planning and charging policies linked to land use planning

An Example Small town Traditional Main Street Surrounding area is older style residential Some travel related services spread along the highway that passes through town

What the Plan Envisaged LEGEND Residential Business/ Commercial Special Purpose

What Actually Happened LEGEND Residential Business/ Commercial Special Purpose Development Unused re-development site

Drivers Land in small town closely held Becomes available due to significant life events not just rational economics ‘What can I do on this land?’ not ‘where is the best site for what I want to do?’ Accidental developers Development is a compromise between affordability, opportunity and economics

Some Observations Development heavily influenced by land already owned or available cheaply Often very different to pattern and sequencing in plans Exacerbated by IPA where nothing is prohibited Planned infrastructure doesn’t match actual demand locations Infrastructure provision ‘on the run’

Planning creates forces that promote unplanned outcomes Market Realities Planning creates forces that promote unplanned outcomes

Sequencing and Structure Plan

Current Outcomes Demand for land purchase Current DA or interest

It’s Raining Money! Property owner’s perception of a change in zoning Un-earned windfall Over-inflated expectations

Development Economics Developers are not charities – ROI is essential The profit equation is simple Sale price is determined by the market Everything else reduces eventual profit! Land cost is ~ 1/3 of total Development Equation

Developer Issues Owner has overinflated price expectations Owner has no understanding of actual development costs still to be incurred Fragmented ownership Difficult to accumulate large holding

In Summary Master planning or ‘rezoning’ leads to: Increased owner expectations Reduced expectations for other owners Better financial returns outside of area Easier to accumulate holding outside of area Demand for early acquisition of land for infrastructure

Are There Options? Reduce the windfall effect Capture some of the increased value that forward planning creates Construct PIPs in such a way that Council can resist demands for out of sequence infrastructure

Thanks for Listening Any Questions?