Brandt v Minister for Lands [1992] QLC 265

ILIBRARY co Y ] LAND COURT, BRISBANE. Re: Determination of Rent - Third rental period Special Lease No 14/34721 Lessee: Ernst Gustav Brandt (Hearing at Cairns) DECISION 18th December, 1992 The Crown is seeking an annual rent of $3,000 per annum for the third period of the abovementioned special lease, which commenced on 13th January, 1991. The lessee has requested that this matter be referred to the Land Court for hearing and determination and has advised that his estimate of the annual rent which should be charged is $1,200 per annum. The rent for the second period of the lease was $405 per annum. The subject special lease is in respect of the land described as Lots 27, 29 to 35, 37, 39, and 41 to 43 on Plan BK.157.99, in the parish of Solander, containing an area of 179.15 hectares. It is situated about 11.5 kms west of Cooktown and access is obtained by 9 kms of bitumen road and 2.5 kms of all weather gravel road. The special lease was granted for a term of 30 years from 13th January, 1971 for manufacturing, residential, industrial or business purposes. It is zoned [1992] QLC 265 -- 1 of 4 -- - Page 2 - "Rural General Farming" under the Town Planning scheme for the Shire of Cook. The Crown report describes the land as "Comprised of 13 surveyed lots which contain near level to gently sloping thickly timbered forest country cut by Poison Creek and several gullies. Soils range from grey-white sands to grey-brown clay loams. Timbered with bloodwood, ti-tree, poplar gum and grass tree." The report goes on to say that the land is used for rural residential, horticulture, aquaculture and minimal grazing. It is not worked in conjunction with any other lands. Mr EG Brandt, appeared and gave evidence that ill health had prevented him from fully developing the property. Mr Brandt explained that he had about 108 acres ready to plough and that in the future he hoped to grow peanuts. He also had about 12 acres developed with crayfish ponds, where he hoped to establish an aquaculture business. He explained that his rent and rates cost him over $7,000 per annum and as a pensioner, he is looking for some assistance with his rent until his farming enterprise becomes viable. He did not challenge anything contained in the Crown report and did not disagree with the level of rent, except to say that he found it difficult to pay in his present circumstances. Mr Gary Francis Cotter, registered valuer, employed by the Department of Lands gave evidence for the Crown. Mr Cotter explained that he valued the subject land at $100,000 on the basis of comparison with a number of sales in the area. In the absence of market rents he had applied 3% of the unimproved value of the land to arrive at his recommended rent of $3,000 per annum. Mr Cotter relied on two sales as his basis of valuation. Sale no 1 is of an -- 2 of 4 -- - Page 3 - area of 71.06 hectares situated approximately 4.5 kms south east of the subject land, and approximately 19.5 kms west of Cooktown. Access to this sale property is by means of 12 kms of bitumen road and 7.5 kms of gravel road. This property sold on 13th June, 1990 for $80,000. Mr Cotter describes it as being somewhat inferior to the subject land because of its size, situation and access. This is off-set to some extent by its slightly better country type. Mr Cotter's sale no 2 is of an area of 134.1 hectares situated approximately 26.6 kms north west of Cooktown. Access to this property is by means of 12 kms of bitumen road, 10.4 kms of gravel road and 4.2 kms of bush track. This property sold on 27th November, 1991 for $120,000 and Mr Cotter describes it as slightly superior to the subject land because it has better water and country type. However, this is largely off-set by its inferior access and smaller area. Notwithstanding its size, Mr Cotter saw the land as having a highest and best use as rural residential and he said there is a demand for properties of that size for such use in close proximity to Cooktown. Mr Brandt did not challenge any of the evidence given by Mr Cotter, and it was obvious that he was seeking some form of relief from hardship which the increased rent was causing him until such time as his property could produce reasonable return. This is not a matter for this Court as there are provisions in the Land Act dealing with the matter of hardship and I was told that these provisions were referred to Mr Brandt by the Lands Department officers present in Court. -- 3 of 4 -- - Page 4 - The matter before me is the determination of the rent and from the evidence presented by Mr Cotter, it appears to me that his valuation is soundly based. In the absence of evidence of market rents, this Court has on many occasions approved the use of 3 per cent of the unimproved value to arrive at the annual rent. I intend to adopt that in this case. Accordingly, the rent for Special Lease No 14/34721 for the third period of the lease is determined at the sum of three thousand dollars ($,3,000) per annum. During the hearing of this matter, evidence was led to the effect that as from 13th September, 1991, consequent upon the exclusion of an area for the issue of SLPF 14/2133 from this special lease, the area had been adjusted to 122.493 hectares, with an annual rent of $2,051 per annum from that date. Mr Cotter said that consequent upon the exclusion of the SLPF, the rent had been adjusted on a pro rata basis. The matter that has been referred to this Court for hearing and determination is the annual rent of $3,000 per annum for this special lease with an area of 179.15 hectares, and I have made my determination accordingly. (J.J. Trickett) Member of the Land Court. -- 4 of 4 --