Tribunal Finding Cruels 1000-Home Melbourne Plan

The developer of a proposal for more than 1000 homes in a north Melbourne suburb is considering its next move after a tribunal ruled against the scheme. Singapore listed developer Ho Bee (HB) Land acquired the wider Aitken Hill conference centre site at 20 Dunhelen Lane, Craigieburn, in 2021 for $142 million. The developer picked up the 68.4ha site 30km north of the CBD from the receivers of bankrupt Chinese conglomerate HNA Group, who had bought it for $94.7 million in 2016. HB Land planned to build up to 1100 residential lots on part of the site, responding to the Craigieburn West Precinct Structure Plan (PSP). But while the land was rezoned for urban, and specifically residential, development, HB Land lost its appeal at VCAT after opposition from Melbourne Water due to the scheme’s potential impact on a nearby reservoir. HB Land’s planning permit application lodged with the Hume City Council initially sought approval for a subdivision comprising 1051 lots, road and open space reserves, according to VCAT documents. However, the land is in the Greenvale Reservoir Catchment, which supplies drinking water to western and north-western Melbourne suburbs and is managed by Melbourne Water. The council was amenable to the proposal, according to VCAT documents and HB Land, the developer’s chief executive Michael Vinodolac told The Urban Developer . “The council always supported our permit application so the key issues to resolve were ... the technical matters raised by Melbourne Water to satisfy their concerns,” Vinodolac says . ▲ HB Land chief executive Michael Vinodolac: “We always try to avoid the legal avenue.” HB Land and Melbourne Water engaged in a mediation process over a period of 12 months to avoid a hearing, he says. “Our team remained confident that a permit should be issued, with appropriate conditions, that allowed us to commence works under an interim bund strategy where we construct our own temporary bund to meet the requirements of the 2008 Greenvale Risk Management Plan. “This has occurred extensively around the existing catchment over the past 15 years so we felt no reason why a different logic should apply to our proposal.” But Melbourne Water objected to the permit application, arguing it would have a potential impact on the water quality of the reservoir. Because of that objection, Hume Council refused the permit application. ▲ The development site abuts several projects including the Aston and Aspect estates. “We sought to negotiate a permit with conditions that prevented any development works until the ultimate bund was constructed by Melbourne Water,” Vinodolac says. “This was rejected by Melbourne Water but supported by Hume City Council. As a result of this we decided to appeal the decision at VCAT.” Prior to the VCAT hearing, HB Land revised its plans, reducing the lot numbers to 585, and allocating land as undeveloped and protected by an embankment, to be subject to future development with a more permanent bund solution on Melbourne Water’s land to the south. Melbourne Water maintained its opposition to the proposal. VCAT, while acknowledging that the development responded to the PSP and urban growth plans, said it needed to judge on whether the development would pose an unacceptable risk to the reservoir’s water quality. It determined that this was the case, and refused the permit. Melbourne Water general manager for urban planning and development Stuart Draffin says there are plans in the works to protect the reservoir. “Melbourne Water is currently assessing tenders for the detailed design of a permanent bund to support proposed development within the Greenvale Reservoir catchment,” Draffin says. “As water storage manager, Melbourne Water objected to a temporary bund at the site to ensure the quality of drinking water, supplied from the reservoir to the western and north-western suburbs of Melbourne, is not adversely affected.” Reservoir land The land was rezoned as an Urban Growth Zone in 2010, but it also required a catchment protection plan, “to protect the Greenvale Reservoir from any contamination resulting from effluent disposal, stormwater runoff and other offsite discharges”. HB Land says it came up with solutions such as interim bunds or embankments for the contamination problems raised by Melbourne Water. But expert witnesses, with whom the tribunal agreed, said they needed more detailed plans and other technical matters relating to bund placement and groundwater contamination. “Clarity and certainty must be provided before a decision is made to grant a permit,” the tribunal said. ▲ HB Land is developing a masterplanned community in nearby Mickleham. HB Land says that before acquiring the site, it engaged in multiple discussions with Melbourne Water “who assured us that construction of the bund was well advanced and fully funded”, Vinodolac says. “Their preliminary timeframe was that it would be completed in circa 2024. In November of 2022 Melbourne Water issued a program indicating the works would be complete in mid 2026. Melbourne Water ’ s most recently advised program is now mid 2029.” HB still intended to deliver the project in accordance with the approved PSP plan and deliver about 1100 residential lots, Vinodolac says. “We are currently reviewing the decision; we believe a fresh application addressing the few outstanding concerns noted by VCAT is still a viable option,” Vinodolac says. “We always try to avoid the legal avenue to resolve disputes and extensive work was undertaken through mediation to achieve this. “However, we were unable to achieve a satisfactory outcome. We always believe that through persistence that common sense can prevail and as such we will continue to pursue our approvals for the site and hope to bring it to market in the near [future].”

Tribunal Finding Cruels 1000-Home Melbourne Plan

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