1. Planning agreements
- Identify the purpose and scope of the planning agreement.
- Ensure compliance with local planning regulations.
- Define obligations for both the developer and planning authority.
- Set clear timelines for fulfilling obligations.
- Specify penalties for non-compliance.
- Describe financial obligations, if any.
- Review zoning changes or exemptions.
- Ensure transparency and public awareness.
- Determine if the agreement covers public amenities, affordable housing, infrastructure, recurrent expenditure, planning impacts, or natural environment.
- Confirm if the agreement excludes 7.11 and 7.12 contributions for the specified area.
- Highlight advantages: greater developer control, certainty in local facilities, and infrastructure provision.
- Consider the implications of paying contributions to Council (less control and timing).
- Evaluate potential value-added from new infrastructure.
- Recognize benefits for Council: reduced management costs and minimized cost overruns.
- Understand the option to register the agreement on the land title.
- Follow the legal process outlined in the Act and Regulations.
- Ensure signatures from both parties.
- Check if it’s tied to a planning proposal or Development Application.
- Observe mandatory notification periods (at least 28 days).
- Verify that planning agreements are publicly accessible via Councils and state government registers.
2. Works in kind agreements
- Consider the option of a works in kind agreement instead of a voluntary planning agreement.
- Works in kind agreements involve the developer building infrastructure instead of making monetary contributions.
- These agreements can be made with the Council after a development contributions plan is in place.
- Determine if the infrastructure to be built aligns with the contributions plan.
- Advantages include more developer control, reduced project management costs for the Council, and simplified legal and administrative procedures.
- Works in kind agreements may be suitable for smaller developments or specific items, whereas large developers may prefer planning agreements.
- Understand that developers can either construct the infrastructure or receive future credits for contributions.
- Council may offer cash payments to developers for construction, based on the plan’s value.
- Be aware of potential cost overruns, as the plan values may be lower than actual construction costs.
- Recognize that constructing high-quality facilities can enhance the development’s overall value.
- Evaluate the agreement’s benefits and drawbacks based on the specific development and contributions plan.
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3. Affordable housing contributions
- Check if the State environmental planning policy identifies a need for affordable housing in the development area.
- Determine if the proposed development could reduce the availability of affordable housing in the area.
- Assess whether the proposed development might create a need for affordable housing in the area.
- Consider if the development is allowed only due to special zoning rules or rezoning.
- Verify if the regulations require this section to apply to the application.
- Check if there’s a State Environmental Planning Policy (SEPP) like SEPP No. 70 in effect in the area.
- Know which local government areas are covered by the SEPP.
- Understand that councils within these areas have the authority to impose conditions for affordable housing, separate from standard contributions (e.g., 7.11 or 7.12).
- Be aware that councils under SEPP 70 typically create an affordable housing contribution scheme, often referenced in the local environmental plan.
- Research if there are specific affordable housing schemes in operation for certain regions within the covered areas, like Ultimo/Pyrmont, Green Square, or Southern Employment Lands.
4. Special infrastructure contributions
- Understand that Special Infrastructure Contributions (SIC) are charges imposed by the state government for funding key infrastructure.
- Identify the types of infrastructure funded by SIC, including state and regional roads, transport facilities, open spaces, and social infrastructure like schools and healthcare.
- Determine if SIC applies to your development area, especially in growth regions.
- Check if your development is in an area with an existing SIC scheme or if it’s planned for the future.
- Know that the Department of Planning, Industry and Environment manages the SIC process.
- Be aware that SIC involves public consultations with councils, developers, landowners, and the community.
- Understand that the Minister for Planning formally approves the SIC scheme.
- Local councils consider SIC when reviewing development applications.
- Identify the typical stage of payment, usually at the subdivision certificate stage.
- Explore options for developers, such as entering into works in kind agreements to build infrastructure or planning agreements as alternatives to paying SIC contributions.