Can NSW state make a compulsory acquisition for 'potential urban plaza'?

Hi PC,

I'm looking at a couple of properties along the Bankstown to Sydenham metro line.
A few of the areas are proposed by NSW metro plans as "potential urban plaza".

1. If I owned this property and metro goes ahead with creating an urban plaza, what happens to my property?
2. Can the state make a compulsory acquisition?
3. Does the state typically encourage a developer to buy the land + other land?

https://www.sydneymetro.info/sites/...Impact Statement Volume 1C Appendices H-I.pdf

 

1 - It may or may not be required for the project. If it is required, then TFNSW may make an offer to purchase prior to compulsory acquisition of the site (it's up to you as to whether you take the offer or risk compulsory acquisition).
2 - If the land is required for the project, then yes, the authority may compulsorily acquire your land
3 - Is it in the authority's interest to deal with a particular developer? Is there a conflict of interest? Will this pass ICAC?

 

regarding 3, do they not acquire the disparate lots of land, and then go out to tender with a combined parcel?

Cheers,
Inertia

 

@Scott No Mates Thanks. What defines whether it is required for the project?

I can understand say a train station or train tracks being required. I’m not sure how an urban plaza would be required for a project, given it’s mainly open space?

@inertia this is my understanding of what has happened for some councils as well.

 

Open space identified as part of the works is part of the project. It will depend upon whether this is already crown land, roadway, council operational or council community land or private land.

 

The properties I'm looking at are private land.

 

If they are required for the project, then there is precious little you can do than lob in your claim for compensation under the heads listed under the act. As an investor, there are fewer heads available than to owner occupiers of land. Deriving income from the property is not occupancy by yourself. Good legal and valuation advice is required by specialists in the field and extra due diligence would also be required to ensure that negotiations have not been commenced with vendor.

 

thanks for the insights. Decided too risky for us after taking all of this into account!

 

I haven’t thoroughly looked over the Sydneham to Bankstown Urban Renewal Corridor Strategy nor familiar with the project so can’t specifically comment re your property or potential property.

But I can give general advice..

Your purchase will likely be part of a strata complex, and it will come down to the complex as whole based on votes, not you individually, unless it is a Torrens title, cant quote without address..

Can the state make a compulsory acquisition? Yes. Absolutely, JTC only applies and comes into effect when the vendor (potentially you) decides to hold out on selling land. Usually, and most cases it is in the best interest of the government to settle mutually with the landowner as substantial costs will be involved for the govt. when JTC is in effect. Now the problem lies when the vendor has unreasonable expectations from the government to outlay above market for your land. Most people are under the misconception that CA is a good/profitable thing.. it isn’t, look at Jax Tyres Thornleigh.. they lost out big due to the NorthConnex.

Q3 is null as that’s assuming the CA is proceeding..

Firstly, I would read carefully, or consult a valuer experienced with the heads of compensation.

‘S.55 (a) to (f) of the JTC1991’. Read it for your own benefit too..

Also, the Urban Plaza might be a part of a Masterplan, chances are it is, and forms part of the development, so yes.

 

Thanks @Thomacino! Appreciate the detailed explanation. It is part of the master plan for Marrickville precinct.

I was researching this one. I reckon it will go for around $1.3m but too much risk on the downside from a CA.
3 Warburton Street, Marrickville, NSW 2204

Will have a good read of JTC you referenced for learning.

 

Near the Castle Hill Showgrounds Metro areas of land were affected by this same issue. In time some were released and other had broader rezoning and planning impacts imposed. Others are still limited. Speculators didn't fare well

 

Hardly detailed.. but appreciate the sentiment.

Possibly more.. did transact for $1.22 in Oct 2018, vendor might get greedy depending on the crowd turnout and expect more. If you are attending the auction I'd be curious to know what the vendor bid is..

Pity it doesn't have a car space.. great location thou...