Buckler v Queensland Railways [1993] QLC 1
LAND COURT
BRISBANE
3rd February, 1993
Re: Claims for Compensation -
Resumption for Railway purposes -
A91-69/70.
Patrick Buckler and Patricia Dawn Buckler
v.
Queensland Railways
J U D G M E N T
As from 18th February, 1989, Queensland Railways resumed three parcels of
land for Railway purposes for the proposed Beenleigh to Robina Railway Line. The
resumed lands were in the ownership of the claimants in fee simple and were part of
two large en globo parcels situated in the county of Ward, parish of Barrow. Such en
globo parcels were, prior to the resumption, described as Lot 2 on RP 112082 (Lot 2)
containing an area of 46.713 hectares and Subdivision C of Portion 41 (Sub C)
containing an area of 66.166 hectares. Lot 2 is bounded on the north by the Gold
Coast Highway to which it has a frontage of about 800 metres. It adjoins a parcel of
4.115 hectares (Lot 1 RP 110444) in the north-eastern corner (owned by a company
of which the claimants are shareholders) and otherwise along the eastern boundary by
Coombabah Creek. The southern boundary and separating the lot from Sub. C is
Small Creek (apart for a distance of about 80 metres of surveyed boundary). Sub. C
is bounded by Small Creek and by Coombabah Creek on the east and south. The
western boundary of both lots is a railway reserve (the railway was closed in 1964).
Land to the east of Coombabah Creek comprises flood plain and Wetland Reserve.
Opposite Lot 2 on the north is the residential estate known as Helensvale. Discovery
Drive, being the main feeder road through the estate, leaves the Gold Coast Highway
opposite Lot 2. A shopping centre is located to the west of the entry to the estate
from the Gold Coast Highway (Helensvale Plaza). West of Helensvale and west of
the Pacific Highway is an estate known as Studio Village. Between the old railway
and the Pacific Highway (Gaven Way) is a subdivision of 3 to 4 hectare parcels (save
for Lot 4 on RP 156889 containing 23.72 hectares). Lot 4 is owned by a company
controlled by the claimants. These lots and Lot 4 are zoned "Light Industry and
Special Facilities (Scientific and Research Activity)". The commercial centre of
Nerang is about 8 kilometres southerly via the Pacific Highway. Southport is about 12
[1993] QLC 1
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kilometres south-easterly via the Gold Coast Highway. The township of Oxenford is
about 4 kilometres to the north. Lands to the south of the aggregation are
undeveloped.
The resumption took an area of about 12.4 hectares from Lot 2, which area is
described as Lot 1 on RP 801744, leaving a balance area of 34.313 hectares in three
severed parcels. From Sub. C were taken two strips of land - one of 9412 square
metres and the other of 1663 square metres. The picture thus far can be seen on
Figure 1 which is taken from a report of Mr J.R. Humphreys, town planner, and
adapted from evidence of Mr Gardiner, valuer, so as to show the areas which will be
occupied by the railway and railway station; the areas of the severed parcels
remaining in Lot 2 and by a dotted line (not to scale) the 1974 flood levels. The plan
(Figure 1) also shows easement A over Lot 2 in favour of Sub C which was executed
by the claimants in 1985. In respect of Sub C, the railway will run along about 200
metres of the resumed land before entering and running along the old railway reserve.
It may also be observed that, at resumption and at the time of the hearing, access to
the resumed land from the Gold Coast Highway is via railway land. The flood levels
shown on the plan assist in appreciating the formation level of the line through the
resumed land. Drawing S16264 which was plotted and surveyed in 1985 is annexed
to the report and valuation of Mr G.W. Knight, valuer. This drawing shows that the
line will pass over the Gold Coast Highway by a bridge with the height of the
embankment on the southern side (the northern boundary of Lot 2) being about 7
metres and gradually lessening in varying heights before passing through a cutting in
the area of Lot 2 just north of Small Creek (where the maximum depth of cut will be
about 4.5 metres), then over Small Creek upon concrete box culverts and thereafter
upon an embankment (about 2.5 metres high) before again entering a cutting in
depths varying to 4.5 metres for the majority of the boundary of Sub C. The plan
carries a notation reading: "Road Overbridge 68.540km" which point is at the centre of
the cutting in the area of Lot 2 just north of Small Creek. This preliminary diagram of
the evidence may now be followed by reference to the claims and the assessment of
compensation made on behalf of the respondent.
Claims were served on Queensland Railways and copies filed in Court for
compensation under headings covering compensation for land, severance and
injurious affection, in sums of $3,502,000 (Lot 2) and $775,300 (Sub C). In the
hearing of the matter compensation was sought in the lump sum of $3,200,000
excluding disturbance. The primary assessment was that made by Mr W.D. Gardiner,
valuer. He valued the subject property (Lot 2 and Sub C) "as one amalgamated
integrated resort parcel with a total area of 112.879 hectares". His valuation of the
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HELENSVALE RAILWAY RESU M PTION
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land for this use which he said was its highest and best use was before the resumption
$12,400,000 (adopted average $110,000 per hectare which was derived from a
consideration of the value of about 13 hectares fronting the Gold Coast Highway and
suitable for industrial/commercial uses at about $175,000 per hectare and the balance
of the land for resort/residential/golf course uses at a value of about $100,000 per
hectare). The valuation of the land after the resumption was calculated as follows -
Ref Figure 1.
North western section
10.511 hectares @ $200,000 per hectare $2,102,200
South western section
2.348 hectares @ $80,000 per hectare $ 187,840
Eastern section of Lot 2 and Sub C
86.52 hectares @ $80,000 per hectare $6,921,600
Total Value After $9,211,640
adopt $9,200,000
The assessment assumes that Queensland Railways will meet the cost of construction
of an overpass to allow access to the eastern section of Lot 2 and to Sub C from Lot 2
which access by easement has been denied as a result of the resumption. Claims
under the heading of disturbance were substantially resolved during the hearing. The
items claimed are as follows -
1.Legal fees $ 1,200
2.Valuation fees $ 1,500
3. Golf course redesign costs $ 95,000
4. Road and culvert $122,000
5. Fencing $ 4,550
Of these items, the quantum of claim is not in dispute, save for the claim for golf
course redesign costs. The total amount claimed as compensation is therefore
$3,424,250.
Queensland Railways relies upon an assessment of compensation made by Mr
G.W. Knight, valuer, in the employ of the Department of Lands. His assessment of
compensation is nil. He says that before the resumption the land (the aggregate) had
a highest and most probable use as a joint development incorporating a golf course
and associated facilities, recreation facilities and residential development. His
valuation of the land for this use is $8 million or about $70,000 per hectare. His
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valuation of the land after the resumption may be prefaced with his resume of the
effects of the resumption as stated in his report and valuation -
"The resumption will cause:
(a)a loss of an area of approximately 13.45 hectares from the parent
aggregation;
(b)severance of the aggregation into 3 areas comprising an eastern severance
of approximately 86.5186 hectares, a north west severance of
approximately 10.5115 hectares and a south west severance of
approximately 2.3484 hectares;
(c)enhancement to the retained parent lands due to the activities of the
resuming authority, namely the location of a railway station on part of the
resumed land. The railway station results in:
(1)higher profile zonings and lands uses on the retained land;
(2)greater diversity of development types on the retained lands;
(3)provides a focus/identification aspect which is unique to the subject
lands within this region;
(4)regional development will focus on the lands which have immediate
proximity to the railway station;
(5)provides a growth catalyst/generator around the station site and the
surrounding region; and
(6)provides the site with an exclusive potential for development as a
transit centre servicing the region inclusive of the City of
Southport. "
This valuation was made "on the basis that a golf course and associated facilities,
clubhouse, recreational facilities and residential precinct would be developed on the
eastern portion of the parent aggregation" (86.518 hectares) and that "Development of
the western severance would incorporate commercial/business orientated usages"
(10.511 hectares and 2.348 hectares). The value applied to the total area is $10
million or about $100,000 per hectare. His assessment was made on the basis that
suitable bridging of the severance at kilometreage 68.54 km would be provided at the
expense of Queensland Railways. An overpass at this point with road will on the
evidence pass through the severed area of 2.348 hectares. It may be seen that Mr
Gardiner is of the opinion that land fronting the Gold Coast Highway after the
resumption (the western severance) is enhanced by the resumption and that the value
of the land east of the resumption has diminished in value.
The Acquisition of Land Act 1967 provides that -
"20. Assessment of compensation. (1) In assessing the compensation to be
paid, regard shall in every case be had not only to the value of land taken but
also to the damage, if any, caused by either or both of the following, namely -
(a)the severing of the land taken from other land of the claimant;
(b)the exercise of any statutory powers by the constructing authority otherwise
injuriously affecting such other land.
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(2) Compensation shall be assessed according to the value of the estate or interest of
the claimant in the land taken on the date when it was taken.
(3) In assessing the compensation to be paid, there shall be taken into consideration,
by way of set-off or abatement, any enhancement of the value of the interest of
the claimant in any land adjoining the land taken or severed therefrom by the
carrying out of the works or purpose for which the land is taken.
But in no case shall this subsection operate so as to require any payment to be
made by the claimant in consideration of such enhancement of value. "
When compensation for the effects of severance, injurious affection and/or
enhancement is in question, it is common practice for the land to be valued by what is
known as the "before" and "after" method of valuation. Valuers Gardiner and Knight
have taken this approach. Their opinions have been influenced by experts in other
fields (more particularly town planning). Witnesses called on behalf of the claimants,
in addition to Mr Gardiner, included -
Mr K.C. Rameau, who is an associate director of a company, Capital & Coastal, which
engages, inter alia, in the purchasing and marketing of properties for high
quality resort development;
Mr F.M. Bolton, golf course designer;
Mr M.F. Winders, consulting engineer, who gave evidence dealing with the noise
aspects of the resumption;
Mr V.A.T. Eppell, consulting engineer, specialising in transportation and traffic
engineering;
Mr M.W. McCracken, specialist in retail analysis;
Mr R.W. Barrett, marketing consultant;
Mr B.J. Hart, real estate agent;
Mr P. Bell, town planner; and
Mr R.J. Cozens, civil engineer.
Witnesses called on behalf of Queensland Railways in addition to Mr Knight included -
Mr R.M. Woods of Horwath & Horwath which company, inter alia, is involved in
providing feasibility studies in tourist activities;
Mr E.J. Ryan, acting manager, Property Division, Queensland Railways;
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Mr J.M. Norling, management consultant in the areas of retailing office space and
urban development;
Mr D.B.L. Arbon, town planner in the employ of Albert Shire Council;
Mr R.B. Hunter, manager, Projects and Contracts, Queensland Railways;
Mr B.G. Bock, general manager, Engineering Services, Queensland Railways;
Mr J.R. Humphreys, consultant town planner; and
Mr C.L. Beard, engineer.
An aggregation of land in this area was acquired by the claimants during 1977.
In the context of development applications, a development of Sub C was the first to
receive the consideration of the Albert Shire Council (the Shire Council). On 13th
July, 1982, the Council granted consent for the use of this parcel for "Outdoor
Recreation Accommodation Units and Motel" which allowed for the development of the
land for a golf course, 126 villa units and a 24-room motel. At the time the land was
zoned "Rural B" and the strategic plan designation was "Rural Residential". The 1982
strategic plan for the Shire Council was gazetted shortly thereafter (7th August, 1982).
The strategic plan showed the preferred use for this parcel as "light industry".
"Special industry" land was shown as west of the railway. At the date of resumption,
the land remained zoned "Rural C". The strategic plan (1988) shows the preferred
use as "Industry". One of the conditions attaching to the consent was that the
consent would lapse unless the nominated land use was substantially commenced
within two years. An application for an extension was granted in 1985. An 18-hole
golf course on the site is substantially complete. The consent has remained in tact at
resumption and at the date of hearing. No witness before the Court has attempted to
offer a higher and better use for this parcel, whether as an entity or if developed in
conjunction with Lot 2 and/or other lands to the north. At the time of the application,
Sub C was landlocked and in the absence of any planning approvals in respect of the
adjoining Lot 2 to the north - "Present access as proposed would be via Lot 8 in
Millaroo Drive and ultimately via the extension of Millaroo Drive to the Gold Coast
Highway at Helensvale" - Council Minutes. A permit to cross the old railway line at or
about this point was granted in the 1880s, when land on each side was in common
ownership and used for pasture. Common ownership of the respective parcels was
severed in 1967. Use also changed. Lot 2 became the subject of an application in
September 1984 when application was made to use that parcel for "Tourist
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Entertainment Purposes" - buildings proposed to be erected on the site were
"clubhouse including residence, squash courts, maintenance shed and BMX hire
repair and storage shed". The plan accompanying the application depicts structures
and a golf driving range through the centre of the area with 9 holes of golf on either
side and a BMX track taking up the loop in Coombabah Creek. The preferred use for
the parcel as shown in the 1982 strategic plan was the same as that for Sub C.
Queensland Railways lodged an objection to the application and it did not proceed.
Under the 1988 strategic plan, the preferred use is shown as "industry and part
Regional Business Centre". Application was made in October 1988 over the eastern
severance of the lot and including Lot 1 on RP 110444 for consent to establish a
Tourist Facility - golf course, recreation facilities and accommodation units (150 - of
which 80 units were to be placed on Lot 1 and 70 on the higher southern area of Lot
2). Approval was given for this development on 2nd December, 1988. The
conceptual plan accompanying the application provided for access to Lot 1 to be taken
from the Gold Coast Highway with a 9-hole course separating the unit developments
proposed for the lot and those proposed for Lot 2 with access being obtained to this
area from the Gold Coast Highway via an entry opposite Discovery Drive, then
southerly and via a bridge over the railway (which by then was known) to a roundabout
from which access could also be got to Sub C. On a similar date an application was
lodged to rezone the land contained within the western severance of Lot 2 and Lot 4
on RP 156889. The application requested a zoning of Special Facilities (Commercial
and Industrial Centre) zone. The application was approved. Appeals were lodged to
the Local Government Court against both applications. On 18th February, 1989, the
resumption was effected. On 5th April, 1989, a master plan for the proposed
Helensvale Station Regional Centre was submitted for the approval of the Council.
The plan covered the land contained in the two applications, the subject of appeal.
The Council responded favourably on 1st February, 1990. Subsequently the appeals
were withdrawn and the Minister caused a rezoning to be gazetted to "Special
Facilities (Commercial and Industrial Centre)" excluding the railway land which was
retained in Rural C zoning.
I turn now to the question of the value of Lot 2 and Sub C before the
resumption. In that exercise the Pointe Gourde principle has relevance. (Pointe
Gourde Quarrying and Transport Co. Ltd. v. Sub-Intendent of Crown Lands (1947)
A.C. 565: (1978) 5 Q.L.C.R. 145). Such requires that in assessing compensation any
increase or decrease in the market value of the land arising from the purpose for
which the land was resumed shall be disregarded. The first application made in
respect of Lot 2 (September 1984) met with objection from Queensland Railways.
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The objection dated 15th November, 1984, showed the proposed line in the position of
the final alignment with the proposed station taking up a triangle in the northern area
of the land between the line and the Gold Coast Highway to a point opposite
Discovery Drive. The first official announcement from Government came in 1984.
The working plan and section map (S16264) appended to the report of Mr Knight was
plotted in August 1985. Parliament gave its approval for the route within defined limits
in November 1985 which included relocation of the station to a site north of the Gold
Coast Highway. The attitude which a prudent purchaser would take to the objection
by Queensland Railways against the application made in respect of Lot 2 in 1984 and
confirmed within the ensuing year is one which may be taken from the evidence of Mr
Bell. In his opinion, the objection (with plan) "set the scene for all future development
proposals to recognise the existence of the railway scheme. A prudent owner could
not ignore the railway in future proposals because of the precedent set by this
application." This appears to me to be a reasonable expression of matters which
must be ignored in the application of the Pointe Gourde principle. There is, however,
but this qualification and that is that the principle does not require that the existence of
the old railway reserve along the western boundary of either Lot 2 or Sub C should be
ignored. Nor would it appear to me that the principle requires that pressure which
was being put upon Government by the planning authority (the Shire Council) for the
introduction of a rapid transit corridor to the coast should be ignored. The former
railway from Beenleigh to Coolangatta/Tweed Heads closed in 1964. Parts of the
railway land were disposed of to adjoining owners and parts used for road purposes.
That area of land adjoining the subject parcels remained in the ownership of
Queensland Railways. It is evident in the report of Mr Humphreys that the Shire
Council began to apply pressure to the Government for the re-introduction of the
railway line in the 1972 strategic plan. Pressure was continued in the 1982 plan. In
that plan, a rail connection was in fact shown on the plan "for the most part following
the former Brisbane/Gold Coast rail link as far as Helensvale before crossing the
Carrara Flood Plain ......." (Mr Humphreys). It seems therefore, although little will turn
on the point, that any prudent purchaser, more particularly of Sub C for the purpose for
which the approval was sought in 1982, would not ignore the fact that the land was
bounded on the west by a rail corridor and would go about his planning of the area
with a degree of caution. The application made in respect of this parcel in 1982 for
Golf Course and Associated Facilities (Accommodation Units and Motel) appears on
the evidence to have been based upon a concept drawn by Thomson and Wolveridge.
The plan provided for an 18-hole championship course with access coming in
temporarily from Millaroo Drive through Lot 8 to a clubhouse sited immediately where
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the number "41" is shown on Figure 1 with carparking and landscaping between it and
the old railway. Units were spread down each ridge. A lake for irrigation purposes
and landing ground (on water) from a practice tee was sited in the north-western
corner adjoining Small Creek. The golf course meandered around and between the
valleys and along the banks of Coombabah Creek. Between the clubhouse and the
south-western corner were tennis courts and then a motel, again with landscaping
separating the development from the railway reserve. On the plan there is no
apparent access with Lot 2. Indeed the area of Small Creek is depicted as carrying
heavy vegetation. The consent given to the application carried 23 conditions, one of
which - Condition 23 - provided that legal access to the land was to be determined to
the satisfaction of the shire engineer. This concept of development has remained as
the accepted highest and best use for the parcel. Exhibit 17 (Plan SK18B) was
tendered as a concept of a development of Sub C together with Lot 2 with the
development of Lot 2 consisting generally of commercial and light industrial uses on
the Gold Coast Highway to and along the old railway (with a landscaped buffer strip
between) with units developed on predominantly the higher land to the rear and a
9-hole course on the lower land. Access to both lots is shown as coming in off the
Gold Coast Highway opposite Discovery Drive with arms swinging east and west to
serve the commercial/industrial areas by a roundabout and with access to the
units/recreation developments being via the same entry and by a second roundabout
with access arms from which access would radiate southerly behind the Light
Industrial areas. The entry which is in the shape of an up-turned "U" with a cul-de-sac
at the beginning and at the end, would be dressed up in the nature of a plaza with
retail shopping on either side. This was an idea as to the composition of the entry
statement. It was intended that this part of the area would be retained and
maintained by the resort owner. The development of Lot 2 in this manner is seen as
complementing the development envisaged for Sub C. The plan is conceptual only
and, apart from the argument as to the extent of land which but for the resumption
may have been used for industrial purposes, was criticised principally on whether a
roundabout would be allowed immediately on entry from the Gold Coast Highway
which is proposed to be a signalised intersection. Viewing the parcels as one site for
integrated resort purposes, the principal differences between the valuers lie in the
extent of land which might be developed for industrial purposes on the Gold Coast
Highway and the other which has a substantial bearing on value is whether the quality
of the development to use language used in 1989 would likely be of 5-star quality or
something less. Mr Rameau, who is experienced in the purchasing, on-selling and
marketing of land for integrated resort development purposes, was of the opinion that
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the site had a good location in terms of access - on and visible to highway traffic, that
its proximity to theme parks to the north and to the City of Brisbane was a factor for
consideration, that the contours of the land were ideal in that the golf course could be
laid out on the lower land with homesites/residential products being available on the
higher ridges and that the site could take a 5-star development. He was of the
opinion that at the relevant date the market for this type of product was buoyant with
likely purchasers being Japanese. He expressed the view that the site could be
marketed through the Helensvale end with an entry immediately opposite the entry to
Helensvale. By using Sanctuary Cove as an analogy, he could see no problem in
having commercial precincts near the entry if done correctly but he would not favour
entry through any light industrial areas. His company purchased and on-sold the
development which became known as Paradise Springs. This development is
situated at the Robina (southern) end of the Merrimac Flood Plain. At the time of
purchase, access to the land via the Robina parkway was unformed but it was known
that it would be formed. He said that this provided a constraint on the saleability of
the site. Other features which he saw as detracting from Paradise Springs included
the existence of high-tension transmission lines traversing the centre of the low-lying
land and the cost of development of land generally on the Merrimac Flood Plain. He
was of the opinion that a fairly similar product could be developed on the subject land
but at lower cost. He expressed the view that the site could be marketed for a sum of
$11 million or about $100,000 per hectare as at February 1989.
Mr Bolton is a designer of golf courses. He was commissioned by Mr Buckler
in 1988 to construct a golf course in Sub C. He was aware of the Thomson and
Wolveridge plan having seen it in about 1983/84. The course he designed and which
is substantially complete is shown in evidence on Plan SK20. It was designed and
constructed with knowledge of the impending resumption. In order to speak about
what may have been put on the site had there been no resumption, he voiced opinions
on the Thomson and Wolveridge plan. Subject to some corrections and redesign
which he would make so as to remove the possibility of the destruction of vegetation
along the banks of Coombabah Creek preventing line of sight to a green and
otherwise eliminating areas of fairways which in his opinion were too close for comfort,
the plan in his opinion provided an exceptional course of championship standard. On
the northern area, that is Lot 2, he believed 9 holes of golf could be constructed of
comparable standard to that which was available on Sub C, thus providing a course of
27 holes of which any two of the 9's would have been comparable. He is a man who
does not like to design golf courses that cater for the professional only and leave the
average golfer in the wilderness. The course which has been designed and which in
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my view of his evidence would have been there irrespective of the resumption were he
to design it contains four sets of tees. From the gold tees the professional has a
tough course, such as The Pines at Sanctuary Cove - "and the rest of the golf course I
believe the average golfer will enjoy very much because he is the man that pays the
bills and if your golf course does not suit him the golf course is not going to be
successful". Both the existing course (SK20) and that of Thomson and Wolveridge
are of approximately the same length from the gold tees - 7,000 yards. The course is
proposed to be irrigated from a storage lake. In designing the course Mr Bolton was
given boundary markers and he put the course within those boundaries without
reference to other features included in the development, save that the course has
been designed around the areas (including possible clubhouse site) which the owner
wishes to develop. In that context his considerations and design have been directed
more to physical features and using those features to enhance the
challenge/attractiveness of the course rather than the design being blended or
moulded by the manner in which developments may or may not be put on the higher
lands, including the clubhouse, although if he was to have a say "I am very very much
opposed to lavish clubhouses on golf courses because they don't work". Inherent in
his evidence is the warning that the question of viability should be kept constantly in
mind when undertaking a development of this nature. In terms of physical features
and attractiveness to players, he would prefer Sub C to Paradise Springs - the sites in
his opinion could not be compared - Paradise Springs is flat and severed by high
tension wires, whereas the subject land is undulating and is enhanced by Coombabah
Creek with its attendant attractiveness in vegetation, etc.
Mr R.W. Barrett, who is a marketing consultant, agreed that the best market for
the entire site as at February 1989 was as one site on the international market. He
was of the opinion that some usage such as warehouses, showrooms, etc., should be
placed on the Gold Coast Highway frontage and that such would not have provided
any great or major problem to the resort as a fully integrated resort system. Japanese
investors in his opinion look for a product which they can market to their own
countrymen. Position in the market was therefore important. Prior to resumption, he
would envisage unit development of two storey cluster-type housing which would sell
for around the $250,000 mark per unit. At the relevant date such price would have
been comparable with selling prices for a medium quality unit in Sanctuary Cove on a
golf course, assuming that the construction was similar and the product similar,
although he concedes, when speaking of the possibility of running into a higher market
- up to say $350,000 - that Sanctuary Cove has a lot more amenities overall than is
possessed by the subject site. He had in fact shown the site to potential Japanese
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buyers. Their main concern, it would appear on his evidence and this of course is
after the resumption, was one of access; that is, where was access going to be got to
the site, what was its cost and who was going to bear it. He said that entry via
industrial areas posed no problems to these buyers as they, depending on the
purchaser, would build a dream in the middle of an industrial city or town. The
substance of his evidence on this issue may be taken from the following parts of the
transcript:
"All right. So to say that this would have been a five-star type of complex would
have made it extremely unique, wouldn't it?-- If the golf course was considered -
now, every developer has in his dream that he wants to build a five-star resort.
In 1989 Mr Buckler's idea was that it was going to be a five-star resort because
of the quality of the championship golf course that was to be constructed and its
design, so in his mind and in his dream he wanted to construct that because,
purely and simply, that was the market at that time, five-star; everybody was
building five-star.
Everyone was aiming at five-star?-- Yes.
But the reality ----?-- If you aim five and finish up with three and a half, well, you've
probably done very well.
Yes, well, actually that's about what I was coming to in that in this particular area,
whilst one might have had those sorts of visions, the reality is that, having
regard to the location of this particular site, a three-star type of development
would have been a more realistic expectation?-- That depends.
Well, depends on what? Who the buyer is?-- Exactly.
All right---?-- Market, positioning, image and brand.
But, see, it's not like - it's not like, is it, those other sites which are located proximate to
the coastal strip - and I'll leave aside Sanctuary Cove - but it's not like those
other sites that are proximate to the coastal strip, you know, which have access
to the beach----?-- Sure.
... restaurants, the casinos, the theatres. So it's different in that regard, isn't it?-- Well,
look, I think you're really labouring on a point here; a five-star, it's a word; and
we're after quality. And it means only quality - five-star - correct?
Uh-huh?-- Quality. So quality golf course, quality residential, is all we're talking about.
But when you speak of Kooralbyn, you say Kooralbyn is not five-star
accommodation?-- But it's got a five-star gold course, if you really want to relate
it to stars, quality.
But we still have a five-star golf course here, in the after situation?-- Quality, yes.
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Right. But what I'm getting at is the type of purchaser and the type of development
that was likely to go on this type of land would have been more likely of a
three-star quality, that is of a Kooralbyn type of development?-- It depends who
it was.
.................
BY MR WHITE: What I think Mr Jones is driving at is the land, because of its
location etc., just would not be worthy of a five-star integrated resort
development?-- It depends on the purchaser. They'll build a dream in the
middle of an industrial city or a town. The Japanese guys do some strange
things. It depends on the purchaser. That has to be my answer. "
Mr Hart, who specialises in selling industrial property, said that with the
integrated resort concept the Gold Coast Highway frontage would appeal to some
minor retail complementing developments for showroom type uses to possibly hi-tech
industrial with the developer maintaining control and maintenance of the entry to the
area which would also serve as entry to the resort. His evidence was more
convincing in respect of the demand and sale of 1500/2000 square metre industrial
blocks in subdivision than it was in respect of value of an en globo area suitable for
that use but being part of a single development incorporating other uses. In terms of
development he said that he would prefer factories and buildings to be facing the
highway (with the service road between) so as to maximise exposure to the highway.
In cross-examination he had this to say:
"BY MR GRIFFIN: You've got the same provisions relating to the entrance and the
service road around the property in the post situation---?-- The service roads
should be at the front of the property, not the rear of the property.
What's the difference between the two locations of the service road?-- it gives your
factories and buildings more exposure to the highway.
But the exposure to the highway's the same in each instance, I suggest to you?-- No,
it's not. Why would you put the back of your building exposed to the highway?
The exposure to the highway is predominantly in relation to letting people know of the
kind of uses that are there, isn't it?-- Yes, that's correct. But you present your
building to the front of the block, not to the rear of the block.
But that's just a matter of design; if you know that you're going to have a building that
has got two frontages, you can easily accommodate that. You don't - that's
just a matter of the design of the building, isn't it?-- No, not really. If you've got
a showroom and manufacturing organisation you want the showroom to the
front of the building showing off as much as possible to the highway. "
-- 14 of 53 --
14
Mr Bell agreed that the highest and best use of the Gold Coast Highway
frontage land was for the uses already discussed, including some minor office
accommodation if genuine hi-tech industries establish in the area. In considering this
question, Mr Humphreys went back to the objectives of the 1982 strategic plan and
after dealing with the identification of the Helensvale Plaza site as a district and
possible future regional centre and the designation of the subject land as light
industrial and special industrial, he concluded at paragraph 7.2.8 of his report as
follows:
"The core functions of a future regional centre at Helensvale envisaged by the 1982
Plan would logically and desirably have all been located on the northern side of
the Gold Coast Highway, building on the Helensvale District Centre that had
already been approved. At best, only subsidiary, complementary land uses
could be expected to be located south of the Gold Coast Highway (for example,
showrooms, office park, service trades). "
Given the location of Helensvale Plaza he said that the type of uses would have been
predominantly light industry in nature including hi-technology and service industries.
"..............................Retail uses (except for showrooms) prohibited in the light
industry zone, would be contrary to the appropriate development of a
District/Regional centre in this locality. Some limited office development,
complementary to light industry, may have been approved as a consent use
within the Light Industry Zone provided the character and intent of the Light
Industry Zone - "to provide for local and small scale industrial activities within
easy reach of residential areas" - is not compromised. The majority of office
uses developed in the area would more appropriately be located on that vacant
land currently zoned light industry adjacent to the Helensvale Plaza shopping
centre. This land is on the same side of the Gold Coast Highway and
conveniently located to the adjacent retail facilities and the Helensvale
residential community.
Nevertheless, private open space development is better suited to the sites topography
and environment and clearly is a more viable use than light industrial. A golf
course requires substantial area and the 18 hole course on the southern portion
of this eastern land utilised the whole site. A nine hole course has been
approved on the eastern half of the northern portion, and it could reasonably be
expected that approval would have been granted for a full 18 holes on this
whole northern portion. Nevertheless, the western half of this northern portion
has the benefit of direct frontage to the Gold Coast Highway at the point
preferred by the MRD. Therefore, if private open space use were not
proposed, light industrial zoning, would be in accordance with the achievement
of the Strategic Plan objectives on the flood free area. A landscape buffer
between light industrial use and a golf course would be a likely design feature
and may have been required by Council in accordance with the 1988 Strategic
Plan Objective 8(b)(iii)." - para 7.2.9.
-- 15 of 53 --
15
Mr Woods defined a 5-star development as one that relates to both the quality
of the product that is available and also to the type of service that is available. "It
would be superior facilities and services within a hotel and a range of accommodation
types together with amenities,facilities. Normally 5-star hotels are associated with
some retail type facilities, retail shopping facilities." He spoke about proximity of a site
to demand generators as matters influencing the suitability of any particular site for a
5-star development or something less, including so far as the Gold Coast is
concerned, proximity of a site to the beach, to restaurants, parks and gardens and the
casino. In his opinion the subject location was lacking immediate demand
generators. A fitting development would in his opinion be a 3-star facility with villas
priced up to $250,000. He saw Arundel Hills which is used by Mr Gardiner as a
comparative sale as providing a 3-star or medium priced accommodation with an
excellent clubhouse and overall more up-market than the subject site.
Mr Norling was of the opinion that any retail facilities that may be developed on
the Gold Coast Highway frontage land would be limited to convenience retail to service
the needs of workers in the industrial areas. Mr Arbon said that he would have
viewed the frontage land as attractive land for showroom and car yards and uses
which like to have highway frontage. Any retail development in his opinion would be
limited. He agreed that there was a possibility, should hi-tech industry develop in the
area, that some pseudo-office activities could develop but not straightout commercial
offices such as banking, real estate and those sorts of things.
Mr Gardiner has viewed 13 hectares of the subject land as suitable for
industrial/commercial uses. Plan SK18B shows the area as taking up the whole of
the Gold Coast Highway frontage between the old rail corridor and Lot 1 on RP
110444 and extending back to approximately a line coinciding with the western
boundary of the railway corridor.
Mr Knight who did not discount the possibility of some showroom-type
developments on the frontage thought that such development would more
appropriately be confined to an area of the order of 3 to 5 hectares. His only real
criticism of the extent of land which Mr Gardiner considered could be put to industrial
development on the frontage was not that such land had the potential for such
development but that a) the size of such development could impact on the
development of the land at the rear and b) that for an area of that size the potential for
full development was futuristic, having regard to the development which has occurred
in the immediate vicinity. The concept as depicted on Plan SK18B may therefore be
taken as a guide to likely development of the site subject to the qualifications which I
-- 16 of 53 --
16
have identified.
Mr Gardiner valued the site as one integrated resort, having the ability to be
positioned in a mid-market to up-market and quite up-market development. This I
read as providing an option ranging from 3-star to 5-star depending on the wishes of
the particular developer. Mr Bolton has designed a golf course on Sub C which he
believes would fit into a 5-star development. This could have been achieved prior to
the resumption. He has designed the course so as to give pleasure to both the
professional golfer and the average golfer. He personally is against 5-star
clubhouses. Viability is a relevant consideration. Mr Barrett spoke about flexibility
and ultimate development being determined by the particular purchaser. Mr Rameau
felt confident that he could have marketed the site as one befitting the upper range,
although he did concede that the site was not the ideal and that the development
proposed on Plan SK18B was a preferred development. Mr Woods would prefer a
3-star development - suitable demand generators being absent in his opinion. Mr
Gardiner was of the opinion that the quality of development would not be dissimilar to
Arundel Hills which is a golf course/residential development with no tourist
accommodation and no industrial/commercial uses. If development was to be placed
in the mid-market range, he would envisage villas being priced in the range from
$250,000 through to $350,000/$400,000. He would regard villas priced in a range
between $175,000 and $250,000 as being down-market. He agreed that provision on
the plan for a 24-unit motel was not consistent with an up-market or
close-to-up-market development. Mr Knight, although stressing that consent would
be required to fill the land above flood level to RL 2.6, more particularly along the
highway frontage land, conceded that permission would most likely be obtained
provided it was necessary so as to achieve orderly development. Mr Arbon did not
raise any probability that consent would not be obtained. Mr Knight, in considering a
development which could be placed on the subject land, preferred to see one where
units would be priced in a range around $150,000. He did not think that the site could
compete with Sanctuary Cove which incorporates substantial water development nor
with Arundel Hills which he suggests is a vastly superior site being better located and
more elevated than is the subject land. Surrounding developments such as
Helensvale and Studio Village provide for residential products ranging up to $120,000
and $220,000 respectively. Before entering into a comparison with the sales relied
upon by Mr Gardiner and Mr Knight, it is worthwhile recapitulating on some evidence
relevant to the exercise - it is agreed that the highest and best use of the parcels is as
one integrated resort site which could provide 27 holes of golf of a standard to 5-star,
with 126-villa units and a 24-unit motel on Sub C with about 196 units on Lot 2 and
-- 17 of 53 --
17
with an area of land on the highway frontage suitable for industrial-type uses; the
preferred access and entry to the estate is that directly opposite the entry to
Helensvale which intersection will be signalised; the design plan (Plan SK18B)
showing an entry through a central plaza as an entry statement to the resort and
serving both the resort and the industrial lands has been criticised from a traffic
engineering point of view with a roundabout immediately upon entry; the price range
for residential products in the nearby subdivisions of Helensvale and Studio Village are
if anything towards the lower market or on the bottom of the mid-market range; the
development will be separated from the Pacific Highway by a subdivision for light
industrial uses (some hi-tech) - development in this subdivision has been slow with
only one development occurring to the relevant date and at the date of hearing. To
the west of the Pacific Highway and opposite this subdivision is a "Rural Residential A"
subdivision. Lands to the south of the subject lands are undeveloped whilst land to
the east is Wetland Reserve. The township of Nerang is about 8 kilometres southerly
while Southport with the nearest beach is about 12 kilometres away. For his opinion
on value, Mr Knight relied on three sales - Studio Village, Arundel Park (not the golf
course, Arundel Hills) and Paradise Springs. Mr Gardiner considered a number of
sales of both resort land and industrial land. In the former bracket, Paradise Springs
is a common sale. Nearer the subject land is the site of Arundel Hills. I may deal
firstly with those sales of Mr Gardiner which I see as providing the least assistance.
Royal Albert Quays of about 376 hectares lies on the north bank of the
Coomera River and opposite Sanctuary Cove which is on the south bank. The
purchase price in 1988 reflected a price of $90,409 per hectare. The development
proposal comprised a waterways based luxury residential and resort consisting of -
-three international hotels;
-two golf courses with one country club;
- a themed shopping village;
-a marina of 400 craft;
- 256 detached house allotments;
- 1819 villa apartments and town houses.
I see little affinity between that proposal and what is intended to be marketed on the
subject land.
Oyster Cove is an oddshaped parcel of about 161 hectares lying between
Saltwater Creek and Coombabah Creek. It adjoins the Shinko development on Hope
Island. In September 1988, the site was contracted for a consideration reflecting
$36,355 per hectare. Development envisaged -
-300 residential allotments;
- 350 designer town houses and condominiums;
-- 18 of 53 --
18
- 300 room resort hotel;
- a non-tidal lake;
- 18-hole golf course.
Again I see little affinity between the proposals. In any event the purchase price and
the values applied to the subject site are so far apart that there is obviously little
comparability between them.
I move then to the area of the Merrimac Flood Plain which, by sheer volume of
golf course resort-type developments, may be described as the mecca for this type of
development on the Gold Coast. The Merrimac Plain sits behind Broadbeach/Miami
and Jupiters Casino. On the plan attached to Mr Gardiner's report and virtually
adjoining each other, there is Sapphire Lakes west of the Pacific Highway about which
more will be said shortly, then to the east of the highway and travelling north, Robina
Woods, Paradise Springs, Broadlakes, Nikko (private), Eastpac, Palm Meadows, and
Carrara. On the north bank of the Nerang River across from Carrara, there is Royal
Pines.
Sapphire Lakes of about 148 hectares sold in October 1988 for a consideration
reflecting a price of $155,732 per hectare. The site is described by Mr Gardiner as
consisting of elevated and flood free land along Somerset Drive with Mudgeeraba
Creek bisecting the property and requiring for development substantial fill and
drainage. The site has consent for -
On Lot 1 - 300 room hotel
- 150 units
- recreational facilities
On balance land - 27 hole golf course
- 200 room hotel
- 1600 group title units
- tennis, lawn bowls, etc.
- recreation clubs
- 40 ha lake
The selling price per hectare is, in the opinion of Mr Knight, within the range of sales
for better quality lands on the Merrimac Flood Plain; that is, from $150,000 to
$200,000 per hectare.
Paradise Springs was bought and on-sold by the company, Capital & Coastal,
(Mr Rameau). The area sold was 91.47 hectares. The sale was made in November
1988 for $8.7 million or $95,113 per hectare with approval for -
- 450 villas
- 200 room hotel
- 27 hole golf course
-- 19 of 53 --
19
- golf and racket club
- resort facilities
At the time of sale the Robina Parkway to which the land has a frontage of about 1
kilometre was unformed but it was known that it would be formed. The northern
boundary of the site is Mudgeeraba Creek. About 14 hectares of the land in the
south-eastern corner is elevated land with an aspect to the north and north-west over
the golf course. The balance area, 76 hectares, is flood plain with a high voltage
transmission line passing through the property. Mr Gardiner concedes that Paradise
Springs has a superior location and a slightly superior amenity but loses superiority
when development costs and irrigation are considered. It is proposed that the subject
land would be irrigated from a fresh water lake within the property, whereas golf
course developments on the Merrimac Flood Plain are generally irrigated by sewage
farm effluent.
More remote developments or proposed developments considered were the
Gilston Golf Club site of 84.5 hectares which sold in March 1988 for $5.1 million or
$60,355 per hectare. The original development proposal encompassed two 18-hole
golf courses, a clubhouse and associated resort style accommodation. The site is
seen as one which is inferior to the subject site mainly due to location. Pacific Downs
is another site which is inferior to the subject site in location. This site is situated at
Upper Coomera and realised on sale in December 1988 the sum of $8.5 million or
$48,108 per hectare. Arundel Hills is a site with an area of 175.7 hectares. The site
was purchased in 1988 for $27.5 million or $156,517 per hectare. The land was
purchased by Japanese. At the time of sale the site had subdivisional approval for
1,000 lots. The Japanese purchasers applied for rezoning to - "Special Residential" -
allowing for subdivision into golf course and group housing. In the report of Mr
Gardiner dealing with the sale it is said that a new application is just about to be
considered by council for subdivision into a golf course and Residential A lots. The
site is situated in Arundel Drive and not far distant from the subject land. The land is
elevated. A challenging course has been constructed with a clubhouse "anything but
3-star" (Mr Woods). By comparison Mr Gardiner would value the resort land on the
subject property at about $100,000 per hectare. The sale was not included in the
sales receiving direct consideration for comparison purposes by Mr Knight. It is
conceded by both valuers that the site is superior to the subject site but what the site
has for comparison purposes is its proximity to the subject land, the affinity they have
in terms of location to the beaches, etc., and neither are on the Merrimac Flood Plain
with its particular requirements on development but with favourable location to
Broadbeach/Miami and Jupiters. In terms of location and proposed development,
-- 20 of 53 --
20
Arundel Hills is more comparable with the subject land than any other basic sale. It
is, however, not the only sale of a large parcel of en globo land within the general area
of the subject land. Studio Village of 79.31 hectares sold in July 1988 for $3.6 million
or $45,390 per hectare. The land was developed for residential purposes directed
towards the first home buyer with packages selling around $90,000 and then up to
$115,000. Mr Knight sees the topography of the block as superior to the subject site
but said that the site was inferior in situation, zoning and development potential. He
expressed the view that a golf course could have been constructed on the site. This
opportunity, however, was not taken by the purchaser. Arundel Park is a site south of
the subject land and south-west of Arundel Hills. This parcel of 111.74 hectares was
purchased at auction by Vanglow Pty Ltd in September 1988 for $5.3 million or
$47,906 per hectare. Since purchase the land was rezoned from "Rural Residential"
to "Special Residential". Mr Knight said that the current proposals do not include a
golf course. He describes the site as comprising undulating forest slopes, ridge tops
and creek flats. In October 1989, Vanglow purchased 27 hectares of adjoining land
for $2.4 million. The composite purchase of the two parcels shows a rate of $55,880
per hectare. On enquiries made by Mr Knight, he was led to believe that the reason
behind the later purchase included the possibility that by the addition of such land to
the primary parcel a golf course could be developed. The evidence on the point is not
as clear as it could be. The comparability of these two sales with the subject land lies
in their situation and in the fact that they were sales of comparable sized en globo
parcels in the relevant period. I doubt if the comparisons can be taken much further.
It is significant in my opinion that the purchasers in the case of Studio Village and
Arundel Park purchased the land for residential development, the latter of which was
purchased at auction, and presumably in competition with those who considered
whether there was any potential in the land for a golf course type development. If the
later purchase by Vanglow is taken as representing the added value of land suitable
for golf course purposes to a residential estate, the sale represents a value of about
$90,000 per hectare. Mr Rameau said that in marketing Paradise Springs the fact
that the Robina Parkway was unformed at the time was a marketing constraint. He
also saw the existence of the power lines as a marketing constraint. The purchase
price is well below the standard as stated by Mr Knight as the range of values for golf
course type developments on the Merrimac Flood Plain. What Paradise Springs has
enhancing it is position; such position does not exist in terms of the subject property.
On the other hand, the sale of Arundel Hills is one which I believe cannot be lightly put
aside. It is conceded by both valuers that the site is considerably superior to the
subject site. This is evident in the value applied by Mr Gardiner to the subject land.
-- 21 of 53 --
21
Prima facie, the purchase price paid for Arundel Hills seems to be high if regard is had
to the selling prices of land on the Merrimac Flood Plain. In this respect there may be
significance in the change of proposed development which has occurred with Arundel
Hills, moving from a golf course/group housing development to one of a golf course
and Residential A sized lots which I take as directing the marketing of such residential
packages towards the permanent resident rather than the recreational/holiday resident
as is envisaged in respect of the marketing of the villa units proposed to be put upon
the subject land.
It is clear on the evidence that the Gold Coast Highway frontage of Lot 2 has
potential for industrial development of the nature spoken of by the various witnesses.
Mr Gardiner has valued 13 hectares as having this potential. The usage hoped to be
achieved for lands to the west in Millaroo Drive is for hi-tech industrial. The relevant
frontage lies opposite the entrance to Helensvale and Helensvale Plaza which under
the 1982 strategic plan is identified as a centre which could develop into an urban/rural
regional centre. The type of use envisaged on the frontage of the subject land is
usually found not under the roof of regional centres but rather on the periphery and
preferably with access to the front door (parking) and exposure to passing potential
trade. The subject land appears to me on the evidence to possess these ingredients.
Whilst I tend to agree with Mr Knight that the area assessed by Mr Gardiner is so
large as to require a period before the land is fully utilised, he did not attempt, as I
understand his evidence, to destroy the potential in the area for that purpose. Nor do
I see after hearing the evidence that the extent of the area will impact on the balance
land given the design and the provisions made for buffer areas between the two
developments. The influence this potential had in the valuation of Mr Knight is
unclear as it is not mentioned in his written valuation. In considering the value of this
component of the site, Mr Gardiner had regard to evidence of five sales. He said that
the sales were used to obtain a range in value. Briefly the sales cover the purchase
of 17.963 hectares in Reedy Creek Road, West Burleigh, of land zoned "Future
Urban" but purchased subject to rezoning for light industrial purposes and subdivision
by Leda Developments Pty Ltd for a consideration reflecting $217,113 per hectare; the
purchase for subdivision of a total area of 16.825 hectares on the corner of Ashmore
Road and Harper Street, Nerang, for subdivision and sale for about $277,000 per
hectare; the purchase of four lots aggregating 11.88 hectares in Old Coach Road,
Nerang, for subdivision into some 41 lots for a consideration reflecting $101,000 per
hectare; the purchase of two lots in Siganto Drive, Oxenford, aggregating 9.816
hectares for a consideration reflecting about $320,000 per hectare for subdivision
including the provision of a service station and fast food outlet; the purchase of Lot 12
-- 22 of 53 --
22
(3.945 hectares) in Millaroo Drive for a consideration of $690,000 or $174,900 per
hectare; and the purchase of Lot 3 (3.04 hectares) in Millaroo Drive for $600,000 or
$197,000 per hectare. The first three sales are of better location and on the evidence
relatively close to existing industrial areas. Mr Gardiner regarded the sale in Siganto
Drive as a high sale, being also a superior site in his opinion, whilst the sales in
Millaroo Drive are of smaller properties and in subdivision as opposed to the subject
area being a component of a large parcel for which uses of the balance area conflict
with rather than complement. Nevertheless the potential in the land is one which it
appears on the evidence would be considered by the potential purchaser and in that
light the question seems to be whether a purchaser would, assuming that he would be
prepared to pay say $90,000 to $100,000 per hectare for the resort land, pay a greater
value for the land with the potential for light industrial development. In approaching
this question I do not understand the evidence of Mr Gardiner as meaning that but for
this potential in the frontage land the resort land would have been worth more or that
the converse should apply. In his report it appears that he has arrived at his overall
value by working from the apportionments made. The relevant considerations in my
opinion include the fact that such land is part of an en globo parcel and secondly that a
substantial area is involved. Were the area actually in subdivision it may, having
regard to size, fetch a price up to $150,000 per hectare but it is not a separately
subdivided parcel of 13 hectares. The plan put before the Court (Plan SK18B) as
being a plan which could be put before potential purchasers at the relevant date and
notably Japanese purchasers, does not engender in my opinion thoughts towards a
5-star development proposal or one which is comparable in that context with the
developments which have occurred or are proposed to occur with resort type lands on
the Merrimac Flood Plain, including the sale which is at the bottom of that market, that
is, Paradise Springs. For these reasons I believe that the purchaser would be looking
towards a development of a lesser residential standard and would not be prepared to
pay in excess of $90,000 per hectare for the resort/residential land. Were this value
applied overall, a purchase price of $10 million in round figures would be derived. By
giving weight to the potential in the frontage land for industrial uses, I have arrived at a
purchase price of $10.5 million. This represents a value (discounted) of about
$120,000 per hectare for 13 hectares of frontage land. In the circumstances I find
that the land before the resumption may reasonably be valued at $10.5 million.
Figure I shows the land resumed and the location of the proposed Helensvale
station. When Queensland Railways lodged an objection against the town planning
application in respect of Lot 2 in 1984, a station was proposed in the north-eastern
corner of the site adjoining Lot 1 on RP 110444 and with frontage to the Gold Coast
-- 23 of 53 --
23
Highway. When Parliament approved the development in 1985, a station site had
been selected north of the Gold Coast Highway and within the Helensvale residential
estate. It was later relocated to the subject land for reasons
- 1)of opposition to access being gained to the station through the residential
area of Helensvale;
- 2)that alternative access from the east was considered unsafe; and
- 3)of the possibility of the siting of the station on the subject property being
raised by Mr Buckler.
Relocation of the station site was settled and Mr Buckler advised of the position in
August 1986. The area of the station is 8.524 hectares. It is intended that it will in
the course of time provide for the parking of up to 1500 vehicles. A bus interchange
is envisaged. The line for the most part through Lot 2 will sit upon an embankment.
The poles on which the overhead conductors will be located will be approximately 7
metres high and will be spaced at approximately 60 metres apart immediately
alongside the track. Trains are likely to travel at speeds up to 160kph. Transit time
from Helensvale to the Roma Street Transit Centre in Brisbane is expected to take 50
minutes. It is expected that trains will run between 5.00 a.m. and midnight with an
initial peak of 30 minute frequency. A passing loop will be provided at Helensvale.
No arrangements have been made between Queensland Railways and the claimants
on the purchase or otherwise of the old railway land forming the western boundary of
the parcels, more particularly in respect of Lot 2. The shape of the station area
provides for legal access to the station via the old railway reserve. That part of the
resumption has destroyed access by easement (the only legal access) to Sub C.
Such access has not been fully developed and to any person having any planning
sense it is obvious that the proposal dealing with access to the station as it stands
could be of a temporary nature only. In reality what is envisaged is that access to the
station area (parking area, etc.,) and to the overbridge at 68.540 km will be provided
by the developer and when provided, any necessary adjustments to the resumed area
by way of road dedication will be made. Clearly the proposal should be effected
jointly and as will be seen shortly, finalisation of such matters is essential to the proper
development of the area.
Approvals covering the areas to 1990 and in train or approved at the date of
resumption in February 1989 are -
- 1)the area along the Gold Coast Highway frontage and the triangle of land
adjacent to the closed railway is zoned "Special Facilities (Commercial
and Industrial Centre)";
-- 24 of 53 --
24
- 2)the resumed land remains zoned "Rural C";
- 3)the area of Lot 2 east of the railway is approved for golf course, recreation
centre and accommodation units;
- 4)Sub C remains with the consent granted in 1982.
The current usage of Lot 2 is for plant nursery and associated landscape supplies - the
area which is subject to the Special Facilities zoning is subject to "Earthworks (Filling)
in advance of its use for Commercial/Industrial Undertakings" (Mr Bell). The golf
course, as designed and constructed by Mr Bolton on Sub C, remains in its
substantially complete state of construction. Plan SK20 (Exhibit 13) represents a
concept of development of the parcels after the resumption. Following the concept
proposed before the resumption (Plan SK18B) the entrance to the estate is opposite
Discovery Drive which leads to a roundabout providing entry to the station and the
service road and access to the resort/unit areas running beside the resumed land and
then swooping around through the small triangular area of 2.348 hectares to cross the
railway on the higher ground at point 68.540 from which it would by roundabout
provide access to a clubhouse and unit areas on Lot 2 - a 9-hole course and 70 units.
As with the Thomson and Wolveridge plan, no apparent link appears for vehicular or
pedestrian access to Sub C. This part of the boundary between the parcels (about 80
surveyed metres) is depicted as a heavily landscaped area. The plan in respect of
Sub C differs from plan SK18B in that the lake for irrigation has been moved to the
south-east, with the motel and carparking, etc., areas being slightly further from the
railway and with the 10th hole running parallel with the railway and generally in the
position of the former practice tee (to the lake). To the south of the entry shown on
the plan via a crossing coming in from Millaroo Drive there is positioned the practice
tee and then recreation facilities such as tennis courts. Accommodation units are
again positioned down both ridges to which access would be got from a roundabout
entry after crossing the line from Millaroo Drive. An access road does not pass
through a fairway as was the case with the Thomson and Wolveridge plan. The
course as depicted on SK20 is the one put there by Mr Bolton subsequent to the route
the railway would take being finalised in or about February 1986. It may be taken as
a fact whereas as he pointed out the nature of any other developments on this parcel
remains at the discretion of the developer including the positioning of the clubhouse.
The area between the 10th fairway and the railway is shown as a heavily landscaped
area. The area of the practice fairway has between it and the railway a road to
service the accommodation units on the southern ridge and landscaping. This plan,
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when read with the Thomson and Wolveridge plan, sees Sub C as a single
development with an entry statement immediately on entering the area over the
railway from Millaroo Drive. Queensland Railways would not oppose an overbridge at
this location but is not prepared to contribute to the cost. This attitude, when
considered in terms of the legal access which existed to the site prior to the
resumption, is the correct attitude and no submission is made to the contrary by the
claimants. The location of the overbridge at point 68.540 is one agreed to by the
parties which, if provided, will service both the eastern severance of Lot 2 and will, if
required, restore what was taken from Sub C. The cost of the overbridge is of the
order of $700,000, excluding paving of the roundabout which the developer/claimants
will provide in presenting an entry statement at the roundabout. Access from there to
Sub C, assuming that the developer relies upon that access, will parallel the railway.
That of course would have been the position had access prior to the resumption been
taken via Sub C. With the resumption there is less land available for this purpose but
in the opinion of Mr Knight it would have had little effect on the positioning of the lake
as envisaged in the Thomson and Wolveridge plan. As the plan stands at present
with the course as constructed by Mr Bolton on parameters given to him by Mr Buckler
and with knowledge of the existence of the line and the impending resumption, Mr
Bolton believes that the 10th tee would have to be replaced. Frankly, and speaking
as a practical person who has had the benefit of viewing the plans and hearing the
evidence which has been put before the Court, I would if placed in the position of a
developer seriously consider the development of Sub C in isolation to a development
of Lot 2 with entry to the area coming from Millaroo Drive. This will be more apparent
as I progress. A conclusion could reasonably be drawn that this was always the
intention of Mr Buckler. It may also be observed at this juncture that the station area is
8.524 hectares and that Queensland Railways is encouraging the development of
airspace over stations and the integration of the railway with commercial undertakings.
Whilst not desirous of entering the development scene itself, Queensland Railways
"We would be encouraging adjoining land owners or other developers to come in and
lease airspace or the land from us. In the context of Helensvale we were encouraging
Mr Buckler to be involved in a development of the railway airspace which seemed to
be the way he was intending to go anyway." (Mr Hunter). There is evidence from Mr
Knight that Queensland Railways would be looking for a market rental were airspace
leased, although he could not speak conclusively on the point. Mr Hunter said that
Kinhill Cameron McNamara, consulting engineers, have been engaged by
Queensland Railways to prepare an impact assessment study for the railway. The
report is currently only at draft stage. However, on Mr Hunter's perusal of the draft, it
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indicates that the maximum noise level from the train at full speed (160kmph) is
92bB(A) at 15 metres from the track. He said that the maximum noise criteria to be
adopted by Queensland Railways is 85dB(A) measured one metre from any building
facade. The design and construction of the railway will incorporate noise barriers as
recommended by the study. Landscaping would comprise shrubs and trees where
appropriate and if required by the guidelines noise barriers will be erected on the
bridge over Coombabah Creek (south of Sub C). Mr Hunter said that the current
planning of the railway is for Stage 1 to Helensvale to be completed in late 1995.
That stage includes provision for 356 carparking bays and 12 kiss-and-ride setdown
points with future stage development occurring as patronage increases which could
take the form of provision for 10 bus bays and in excess of 1000 cars at grade.
Figure 2 is a concept of a proposed development covering Lot 2 and the
adjoining (severed) land. The plan depicts the sort of development envisaged for
these areas in terms of the application made to the Shire Council in December 1988.
Insofar as the application deals with Lot 2 west of the railway and Lot 4 on RP 156889,
some extracts from the report put to Council by the appropriate branch of the Council
are informative as to the thinking at the time -
" 1. Proposed Use
The applicant wishes to rezone 45.83 hectares of land at Millaroo Drive from Rural B
and Rural C to Special Facilities - Commercial and Industrial Centre.
The site is traversed by the future Gold Coast Railway Line and contains the
Helensvale Station.
The proposal is to provide limited convenience shopping adjacent to the station site
and then extending around from this, commercial development such as
showrooms and offices. Towards the western and southern parts of the
property the more conventional light industrial use is proposed.
Specific uses proposed in the application for this mixed use Commercial and Industrial
facility include carparks, catering businesses, commercial premises,
educational establishments, light industries, medical centres, offices,
professional offices, public utilities, public recreation, service industries, service
station, shops up to 3000m2, showrooms, transport terminals, warehouses.
A 10 metre buffer is proposed between the proposed light industrial land and the
adjacent highways.
Access is proposed to the Gold Coast Highway and this will then connect to Millaroo
Drive.
2. Existing Use
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The land is not presently being used other than for a relatively minor formwork
business and storage area in the north east section.
3. Area Land Use
The Helensvale residential estate is to the north across the Gold Coast Highway. The
area to the south is zoned for Light and Hi-technology Industry and is partially
developed as such.
The proposed site for rezoning is bounded by the new Gold Coast Railway Line and
the balance of the property to the east of this is zoned Rural C but there will be
a future proposal to develop this as a Golf Resort. Further east, Coombabah
Creek forms the boundary of the Albert Shire and within Gold Coast City the
area adjacent to Coombabah Creek is zoned Public Open Space. Land to the
west across the Pacific Highway is partly developed as rural residential.
4. Strategic Plan
On the Strategic Plan, the area is designated as Industrial with a Regional Business
Centre straddling the Gold Coast Highway in this vicinity.
The applicant is requesting zoning as Special Facilities - Commercial and Industrial
Centre rather than specific Commercial and Industrial zones as this will provide
flexibility for detailed planning.
5. Council Policy or Development Control Plan
The site is not the subject of any specific Council policy or Development Control Plan.
6. Services
The area is not serviced directly by adequate water and sewerage but these are
available within a reasonable distance.
7. Traffic
The site is at the intersection of the Pacific Highway and Gold Coast Highway. The
volume of traffic generated by the development itself will be small in relation to
traffic on these highways. However, it should be noted that the Helensvale
Railway Station which is proposed at this site will most likely generate traffic
volumes and peaks which will exceed those generated by the proposed
development.
The proposed access from the Gold Coast Highway will provide a major access to the
railway station and will allow the at grade intersection of the Pacific Highway
and Habana Street to be either closed off or restricted to left in - left out in
accordance with the Main Roads Department objectives for the Pacific
Highway.
8. Topography
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The land undulates towards the creek and comprises generally open forest country.
9. Drainage
The land is well drained.
10. Flooding
The site covered by the application is not subject to flooding.
11. Amenity
The submitted proposal is separated from adjacent residential developments by the
Pacific Highway and the Gold Coast Highway and will not detrimentally affect
the amenity currently enjoyed by these developments.
12. Objections
No objections have been received.
13. Conclusion
The area is developing as a mix of rural residential and urban residential uses. The
submitted proposal which conforms with the Strategic Plan will supplement the
surrounding existing and proposed uses without affecting their amenity. The
proposal is recommended for approval. "
Some six weeks after the resumption, a revised concept plan was submitted to the
Shire Council by Weathered Howe and Associates Pty Ltd on behalf of the same
applicant - refer Figure 3. Changes to the previous concept which Mr Humphreys
saw as significant included -
1)retail floor space increased from 3000m2 to 30-40,000m2;
2)parkland increased from approximately 5% to 15% of the area rezoned;
3)more details are set down for the proposed form of development and land
use controls.
Mr Arbon said that the Weathered Howe concept plan was given favourable
consideration by the Council because it was consistent with the 1988 strategic plan
which envisaged the integration of a regional business centre with the Helensvale
Railway Station and indeed with other stations on the line. It may be seen on
perusing Figures 1, 2 and 3 that the concept includes also Lot 4 on RP 156889 which
land is held by a company under the control of the claimants. That part of the
concept within Lot 2 of about 13 hectares with the addition of the station area yields a
gross area of about 21 hectares. In the opinion of Mr Arbon the minimum area
required for a regional business centre is between 20 and 30 hectares. The strategic
plan (1982) intended that urban areas will contain large urban-type regional centres
located many kilometres apart and containing the main shopping, commercial, civic
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and cultural facilities of that urban region. Thus, the station area with the balance
area of Lot 2 would be sufficient to house a regional business centre of the concept
envisaged in the 1982 strategic plan and pursued in the 1988 plan. A chart drawn by
Mr Humphreys and appended to his report sets out uses which are intended for such
centres -
The 1988 plan geographically placed the Regional Business Centre of Helensvale
over the subject land and the existing Helensvale Plaza. Historically, events and
planning which led to this may be summarised briefly for purposes relevant as follows.
The strategic plan 1973 recognised the need for a rapid transit system. A
community or commercial centre (the lowest category) was shown at the junction of
Helensvale Road with the Pacific Highway, now midway between Helensvale and
Oxenford. The strategic plan 1982 proposed that the possibility of a public transport
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30
corridor be retained as part of the planning concept. A substantial urban area was
shown at Helensvale and Gaven. At para 4.4.4 of Part B of the plan it is said -
"This area presently contains the nucleus of development at Helensvale and is
attractive because of its relative closeness to Brisbane and offers a
semi-rural urban environment away from the 'busy' Gold Coast scene.
The community is well defined by Coombabah Lake to the east and
Rural A land on the other three sides. Its highway location gives it good
access both north and south. The present population is quite small
being some 2,500 people with a growth rate of around 20%. Plans are
under way for development of the Forest west of the highway and
Helensvale itself is still expanding. The gross area of this urban unit is
some 1250 hectares gross (1000 nett) yielding a population of some 30
000 people, 10 000 in Helensvale and 20 000 to the west of the
highway. "
The location of the district centre proposed for Helensvale was proven to be
unsuitable. Council approved the relocation of the centre to the entrance to
Helensvale estate from the Gold Coast Highway. At page 64 of Part B of the plan it is
said -
"Although the centre is only designed as a district centre at this stage it could
develop into an urban/rural regional centre. "
Reference is also made to the potential for a future rail facility as a means of providing
ready access -
"In the event that a rail or rapid transit facility is located within the urban corridor
in the future, the industrial areas will be in a position to be readily
accessible from such a facility. " (Objective 5(c) of Part A).
The preferred dominant land uses for the subject sites and the adjoining land were
designated as "Light Industry" east of the closed railway and "Special Industry" west of
the closed railway. By the time the 1988 plan was gazetted, the railway was reality
although the date of completion was subject to some speculation. The development
theme shows an urban corridor extending from Beenleigh in the north to the southern
part of the Shire which lies west of the Gold Coast City. The corridor coincides with
the transport corridor formed by the Pacific Highway and the proposed railway. The
preferred alternative (of four alternative strategies considered) by the Shire Council
favoured urban development along this corridor (so as to make a better use of railway
facilities) rather than to extend urban development west to the Gold Coast hinterland.
Summary section 3.9 describes the effect of the proposed railway on the pattern of
development in the Shire -
"The proposed Brisbane-Gold Coast Railway will in effect re-enforce the
significance of the Pacific Highway as the major transport corridor
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through the Shire. This corridor provides a logical focus for
development, as locations near the corridor will be able to obtain easier
access to other developed areas of the Shire, as well as areas beyond.
The six proposed stations are obvious locations for concentrating
employment opportunities and higher order facilities. They will be more
convenient destinations for people living in other parts of the corridor, as
well as the focuses of movements in the local areas that they serve. "
Under that part of the plan dealing with "Shire Image" in section 26.3.3, it is said -
"The proposed Brisbane-Gold Coast Railway will contribute significantly to the
future image of the Shire. Firstly, it will introduce large numbers of
travellers into a particular route through the Shire which will emphasise
the importance of the view from the route. Secondly, the railway will
itself constitute a barrier to movement between areas on each side of it,
thereby tending to act as an edge to districts of the Shire ... Thirdly, the
limited number of stations proposed on this line are likely to become
focal points for activity, that is, developed as nodes. If railway stations
and future regional business centres coincide, then the images of each
will mutually benefit, as will the Shire image itself. "
The plan shows a pattern of regional business centres based on the rail corridor
between the Gold Coast and Beenleigh. The centres on the route are from the north,
Beenleigh, Coomera, Gaven/Helensvale, Nerang and Robina. The rationale behind
this approach is contained in Part B of the plan which, in addition to the paragraph
quoted, states -
" 20.4.6 The Corridor
Regional centres could be located at other points in the corridor, depending upon
needs determined by population levels. The proposed Gold Coast rail,
and the limited number of stations intended, point to the station locations
as logical focuses for centre development. Depending upon population
numbers, the centres of Gaven and Coomera would appear to be logical
locations for future regional business centres. In each case, their
location in relation to the major road network (close to the Pacific
Highway and adjoining a major road interchange which serves future
urban areas on both sides of the highway) creates a particularly high
level of vehicular accessibility.."
20.4.7 Public Transport Considerations
There are notable advantages in locating Regional Business Centres at proposed
railway station locations on the Gold Coast rail route, where these
locations are combined with good regional road network access. These
advantages may be summarised as:
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32
(i)office employment will be encouraged in these locations, because of
the potential for commuting to offices located in these centres;
(ii)commuting will enhance the viability of the railway;
(iii)centres located at railway stations will be more accessible to
residential communities located elsewhere in the corridor and
accessible to other railway stations;
(iv)railway stations are likely to be the focus of any future complementary
development of public transport systems such as buses and taxis,
therefore enhancing the potential accessibility of centres so
located, and the viability of such public transport.
S5.8 Regional Business Centres
At Beenleigh, Coomera, Helensvale and Robina, the centres are proposed to be
directly associated with railway stations. At Nerang, the station is
reasonably convenient to the Centre. This will be beneficial in providing
convenient access to employment opportunities located in these centres.
Future public transport provision (ie. buses, etc.) would be likely to
focus on these stations at any rate, and consolidation of development at
stations will promote convenience and viable public transport. "
In speaking about the centres, the plan says in respect of Helensvale -
"The business strategy intends four of the regional business centres to serve
the Gold Coast region:
30.2.2 Gold Coast Region
Four Regional Business centres are proposed within the Shire, to service the Gold
Coast Region. These are Broadbeach, Robina, Nerang and Gaven. In
addition, the proposed Regional Centre at Burleigh and to a lesser
degree Surfers Paradise and Southport, will provide services to
populations of Albert Shire.
Gaven centre, situated at the intersection of the Gold Coast Highway with the Pacific
Highway, is like Robina centre, intended to be integrated with the
development of the Helensvale station on the Brisbane-Gold Coast
railway. The size of this centre is likely to be limited in the short to
medium term, because of lack of populations, and the need to ensure
that the proper development of the Nerang regional business centre is
not unduly compromised. This centre is intended to serve primarily
Oxenford, Helensvale, Gaven, and Ernest, although its influence will
undoubtedly extend beyond this area ....
.....................................................
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Helensvale is a proposed centre intended to be comprehensively planned and
developed in association with the proposed Helensvale railway station.
It will perform shopping and commercial functions for areas west of the
Pacific Highway, for Helensvale and for the north-western areas of Gold
Coast City; "
and in respect of Coomera -
"Coomera is a new centre intended to be comprehensively planned and
developed in association with the proposed railway station. Its fullest
development will have to await substantial growth in the area, which may
not occur straight away. Initially, it is likely that either Helensvale or
Coomera will develop to meet the needs of both areas;"
The Weathered Howe concept appears as an illustration of a regional business centre
as defined and as intended by the plan. That is not to say, of course, that the area is
ripe for development. In the planning sense and a factor which will aid and enhance
orderly development is the ingredient that the subject land is a large area of
undeveloped land well positioned in terms of vehicular access (traffic counts of about
44000 vehicles per day along Pacific Highway and about 11000 per day along the
Gold Coast Highway) and because of the railway on a rapid transit system. It is not
beyond one's imagination in the long term to envisage the area containing the uses
which the planners expect a regional business centre to provide, assuming that the
principles expounded in the plan are held together. The positioning of the Light
Industrial (Hi-Technology) land complements this scene, both in terms of access to the
Gold Coast Highway from Millaroo Drive and in terms of access to the railway station.
Mr Humphreys in analysing and in commenting upon the 1988 plan says that
the planning objectives and principles of the plan are fundamental to any development
appraisal relating to regional business centres; that the relationship of a regional
business centre to a railway station (four of six located at stations) is central to the
business centre strategy of the plan "which aims to concentrate higher order business
and shopping development at the stations to maximise and promote public transport
accessibility, user amenity and economic viability through the benefits of
agglomeration"; that any alternative station location at Helensvale, other than the
subject land, would very likely have become the preferred location for a regional
business centre; that if no railway was proposed, the 1982 plan would if taken as a
guide indicate that the existing Helensvale centre would be the centre to develop into a
regional centre.
The opinion of Mr Arbon is that but for the station it is unlikely that the multi and
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34
higher uses (commercial/retail) would have been considered appropriate and that the
best that may have been achieved for the subject land would have been showrooms
and highway commercial in the Light Industrial zone. When Mr Knight translates that
evidence into valuation form, he finds that after the resumption the balance land of Lot
2 and Sub C is worth $100,000 per hectare or $10 million in round figures. The
features which he identified in supporting his conclusions (enhancement) have been
stated previously. There is also evidence which he gave and which is supported by
Mr Arbon that residential density after the resumption may be permitted to increase
from 8 to 10 units per hectare. That a part of the land is enhanced by the proposed
railway development is confirmed by Mr Gardiner; the enhancement in his opinion
flows only to that part of the land which falls under the zoning "Special Facilities -
Commercial and Industrial Centre", although it is not this form of development which
carries the enhancement but rather for the Industrial (Showroom-type Uses) which
potential was there prior to the railway. Mr Gardiner sees the railway development as
doing nothing which would enhance the land east of the line. More so, in his opinion,
the residential components will be downgraded from secondary residential units to one
of primary residential units which, in his opinion, represents a development of a lower
profile.
The substance of the report of Mr Bell is that the development of a regional
business centre on the subject site is unlikely to occur due to competing centres, such
as Nerang (which it is recognised by the Council should not be unduly compromised)
and, more particularly, Harbour Town. He also says that the existing Helensvale
Plaza is capable of expansion by 10,000m2 to 15,000m2. The tenuity of the plan he
questions through a recent approach and indication by the Council to the owners of
Coomera Lakes at Oxenford (a sale which will be considered later), that a proposal for
a regional business centre of 50,000m2 on 120 hectares of land could be considered
subject to a change to the strategic plan and to the outcome of the public advertising
process. Harbour Town is situated at Runaway Bay. It is about six kilometres from
the subject site. This proposal received Cabinet approval in 1987. The site was not
identified as a possible regional business centre site on the 1988 strategic plan for the
Gold Coast City. Rezoning of the site occurred in July 1989. Subsequently, the Gold
Coast City (Harbour Town Zoning) Act was passed. From press reports Mr Bell says
that the size of the centre has ranged from 50,000m2 to 150,000m2. Mr Arbon replies
by saying that the proposal was known when the 1988 plan was drawn for the Albert
Shire but was "considered to be sufficiently far away from Helensvale so as to allow
both to compete satisfactorily. Further, Harbour Town can be distinguished from the
Helensvale site in that Harbour Town is simply a highway site whereas Helensvale is
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proximate, not only to the Pacific Highway but also has a rail centre located in
conjunction with it. Further, the two centres rely to an extent on different population
areas." In other respects Mr Bell says that the railway which for the most part will be
upon an embankment as it traverses the subject land will dominate the area and
intrude visually, provide noise disruption and diminish privacy - the level of amenity will
be disadvantaged.
The factors which Mr Rameau found as limiting the value of the land after the
resumption were -
1)because it basically severs the site and reduces the land mass; and
2)because the general public perception from a marketeers point of view of a
railway is "pretty poor" and generally seen as a detraction due to noise
and visibility.
His opinions, however, bore more relationship to the marketing of the site as
predominantly a resort site after the resumption as was his appreciation of the site
prior to the resumption -
"The course had the potential to be a first-class 27-hole complex. This has
now been lost."
"I believe that the railway changes the market in which you aim your residential
product. If the railway is to proceed the only development option that I
think would be viable for the property would be at the lower end of the
residential market which would be considerably less profitable than the
higher end of the residential market. "
"The proposed access over the railway only highlights to potential purchasers
the blight on the landscape and the potential for the interruption of the
quiet enjoyment of the property. "
As a marketeer, he would be talking in the vicinity of $6 million for the site after the
resumption.
Apart from the issue of disturbance which will be considered later, the course
constructed by Mr Bolton on Sub C was constructed with knowledge of the railway and
although with reduced parameters - less higher land available for the course - he has
placed upon the parcel a course of length and quality which would complement a
5-star resort. He expressed the opinion that trains will be damaging to a higher
quality course but seemed to be more concerned with the disturbance which will be
caused during the construction of the railway than with that which may follow with
passing trains upon a line which, on the evidence of the respondent's witnesses, will
be buffered within the reserve and as depicted on plans both before and after the
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36
resumption buffered internally by the developer so as to block out the Light Industrial
land fronting Millaroo Drive. Should access to the site be taken from Lot 2 and in
parallel with the railway, Mr Bolton says that the 10th fairway will have to be replaced.
I have already indicated that an orderly development of the land for the purposes of
maximising the potential therein and in the adjoining lands as may be depicted on
Figures 2 and 3 will require some joint working between the developer and the
respondent - dedicated access to the station and the disposal of the land contained in
the unrequired railway reserve are but two primary examples. If this objective is
achieved, it will do much to alleviate or remove uncertainties and problems and will
open the way for accessing Sub C from the Gold Coast Highway via Millaroo Drive.
Mr Eppell gave evidence on matters of comparison between stations on the
Cleveland Line (Brisbane Suburban Railway) and stations on the subject line, notably
between Birkdale and Helensvale. There are, however, on the evidence differences
between the sites which in my opinion displaces Birkdale as an example or a basis for
any form of projections on development of the Helensvale area. This I see principally
in the evidence that Helensvale is being sited within a large undeveloped parcel which
is planned to allow for the development of the area as a regional business centre
incorporating amongst those uses the uses envisaged in the chart drawn by Mr
Humphreys. His evidence also covered the question whether the proposed road
(easement) which links with the overbridge and which severs an area of 2.348
hectares will place constraints on the development of that area in terms of access. It
appears possible that a second roundabout may be required at or around the
approach to the overbridge in order to remove any possibility of access to the severed
parcels being restricted to left-in and left-out, thereby pushing commercial/industrial
traffic over the railway to the roundabout east of the bridge.
Mr McCracken considered the question as to how and to what degree the
railway station would enhance development prospects of the land. His study
addressed the impact of existing and proposed retail developments nearby; likely
future population growth trends; and the implications of those trends for the likely
timing of those retail facilities. The area he identified as a probable sphere of
influence for retail and other business facilities located at or near the subject site was
split into four areas centred on Helensvale (Area 1), Gaven/Oxenford (Area 2),
Coombabah/Arundel (Area 3) and Hope Island (Area 4). He sees the existing
Helensvale Plaza as relying primarily upon the populations of Areas 1 and 2 for market
survival and growth. He also believes that any future retail and professional service
development on the subject site would depend heavily on these two areas for the
majority of its business. Area 3 which he describes as a rapidly growing area is likely
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in his opinion to have little consequence on opportunities in respect of the subject land
once Harbour Town is complete, although he concedes that the part of the area south
of the Gold Coast Highway would be within reasonably easy access to the subject site.
Area 4 is discounted for reasons of the existence of facilities at Sanctuary Cove,
Runaway Bay and again Harbour Town, subject to the qualification that future road
construction and proposed bridging of Saltwater Creek to the north as part of
Monterey Quays and Oyster Cove developments may allow the subject area to serve
as an alternate destination for Hope Island shoppers. Forecasts to 2006 have Area 1
with a possible population of 30,000; Area 2 is expected to provide the majority of the
growth through projects such as the development of the 560-hectare Pacific City
residential development which he said is mooted to have an ultimate capacity of
15,000/18,000 people; growth on Hope Island is expected to continue at a modest
rate; whereas Area 3 is expected to grow to a population of about 26,000. His study
dealing with retail expenditure potential of the areas and projected to 2006 reveals that
Areas 1 and 2 would account for about half the retail expenditure base over the
forecast period. He then dealt with centres with the capacity to expand (such as
Helensvale Plaza) and Nerang; the existence of small neighbourhood shopping
centres and district centres which could be expected to develop (such as within Pacific
City) and those generally within the northern Gold Coast region. The proposal which
he foresees as having the greatest impact on the development of the subject site is
Harbour Town. This proposal includes -
Regional shopping facilities of up to 50,000m2 in a first stage is only part of the
Harbour Town complex, which is also planned to include:
.community facilities such as a civic centre, private hospital, child care and
public transport system;
.a commercial office park and hotel accommodation;
. tourist and entertainment facilities such as a theme park, cinemas,
nightclubs and restaurants;
. a substantial medium density residential component; and
. retail showrooms, homemaker stores and other bulky goods outlets.
He said that Robina which will act as the terminus of the Brisbane - Gold Coast rail link
is planned to be the Gold Coast/southern Albert Shire's main commercial or business
centre with planned office space exceeding the total existing on the Gold Coast at
present. He concluded that development of a higher order retail and professional
service activities on the subject site would be severely constrained by -
1)the existence of Helensvale Plaza;
2)the likelihood of Nerang strengthening its role;
3)the expected dominance of Harbour Town;
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4) the development of Robina.
I may observe before proceeding and by floating through my mind the concept of a
regional business centre having the uses envisaged in the chart and now in existence
(more so in respect of the regionalisation of Government Departments to those areas)
at Garden City and Chermside in Brisbane, that much of the evidence of Mr
McCracken lost site of this potential, notwithstanding the planning for Robina (given
the expected population growth for Areas 1 to 4), save that Harbour Town looms on
his evidence as a potential competitor. That area, however, does not possess the
access that is available to the subject site (ready access being identified by him as a
reason for the failure of office accommodation being taken up at Carindale as
opposed to Garden City and Chermside) nor will it have the advantage of rail within
walking distance. One may well ask (again long term) which site might be preferred
by Government and semi-Government authorities and community organisations.
Mr Barrett, who is a marketing consultant, was of the opinion that following the
resumption the resort component of the parcels would be downgraded from one in
which units might be marketed at $250,000 to one in which units might be priced at
$160,000. He spoke about the effects that delays and uncertainties have on holding
costs and of the marketing of such lands to Japanese purchasers. They, it would
appear on his evidence, have little concern that access to a golf based resort might be
through industrial land nor does it appear that the existence of a railway near the
boundary was of great moment. Rather the factor which he highlighted in terms of
the subject lots was the question as to how access would be got to the resort and who
would pay for it. When speaking about potential purchasers he stressed that
marketing and positioning in a market could decide success or failure of a venture.
The evidence of Mr Hart is that the potential in the land fronting the Gold Coast
Highway remains as it existed prior to the resumption, save that he saw some slight
benefit coming from the station as a marketing tool and for identification purposes.
Against that he foresaw a few disadvantages which I find are of no great moment. He
could not foresee any possibility for a very long time of a shopping centre being put on
the land due to the existence of Helensvale Plaza and should Harbour Town go
ahead, he was of the opinion that the possibility that did exist could be negated.
The evidence of Mr Winders dealt with potential railway noise exposure of the
golf links and residential areas. The analysis was based upon a rail traffic rate similar
to that described in a study prepared by Cameron McNamara for Queensland
Railways. Inputs into the model included a train flow rate per hour of 2 and 4; a
speed of 160kph; length of train 140 metres and source noise reference level at 30
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39
metres of 84.3dB(A). The calculations show that a peak noise level of 80 would be
exceeded within a distance of 75 metres from the track, whereas it would exceed 70
within 300 metres and 62 within 700 metres unless there existed some topographical
or other shielding. He said that as a guide normal conversation in the open is carried
out at levels of 55-60 and that a level of 70 would only be generated by raised voices.
In his opinion an unexpected occurrence of peak noise levels may be regarded as
detrimental to competitive golfing - "In view of the impersonal nature of railway noise
as far as a golfer may be concerned, it is considered then that relatively infrequent
railway peak noise levels would only noticeably affect golfers if they were greater than
70dB(A)". Mr Bolton instanced the effect of unexpected peak levels on competitive
play by reference to Craig Parry missing a putt when a person in the crowd coughed.
For a train as described, the peak level would last about 10 seconds and with no
buffers, etc., would exceed 75 for about 1 minute. On the assumption that plan SK20
is representative of a development of Sub C, the fairways lying wholly or partly within
the 75-80 levels are the first driving south, and the tenth driving north. Both more or
less parallel the railway. The plan envisages an entry from Millaroo Drive as
described previously. Both tees are beside the road leading to the motel, clubhouse
and unit development (87 units) on the northern ridge. The entry and roadway are
shown as heavily landscaped. Between the tenth fairway and railway is landscaping.
Between the first fairway and railway, there is provision for a practice tee in the north
and tennis courts in the south. The road which will service 39 units on the southern
ridge runs between the practice tee and the railway before turning easterly, passing
the tennis courts and the first green. It is heavily landscaped. The area of the parcel
between 70-75 levels extends further into the parcel embracing the motel, clubhouse,
carparking areas, fairways and some unit areas. The proposed residential area of Lot
2 (just to the north of Small Creek) is almost wholly within the 75-80 level. Almost all
of these accommodation units would experience 24hrLeq in excess of 55dB(A). This
Mr Winders would regard as an area significantly affected by noise and thus he
questions the suitability of this area for unit development. He seeks support in his
opinion by reference to the policy of Brisbane City Council, which Council restrains
residential development in areas near arterial roads where the level is close to 55Leq
and to Australian Standard 2021-1985 which recommends against residential
development of areas near airports where the level exceeds 52Leq. He also seeks
support in the finding of the study made by Cameron McNamara; viz -
"Assessments of the likely noise impacts from the railway indicate that
residents within 100m with clear line of sight to the railway will
experience significant annoyance. Residences within 300m with clear
line of sight may experience interference to sleep. These distances will
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40
be less when the railway is in a cutting. "
This 24 hour average covers that part of Sub C comprising the first and tenth fairways.
Mr Winders said that unit areas could receive noise levels in excess of the criterion if
the bridge over Coombabah Creek does not contain acoustic controls in the structure.
On the evidence of Mr Hunter, this work may be provided. It is not however a matter
for consideration here.
The analysis made by Mr Norling covered many of the matters considered by
both Mr McCracken and Mr Humphreys. In terms of catchment areas and population
growth, he considered the areas generally covered by Mr McCracken, with the
differences being more of opinion of potential trade than geographically; for example,
Mr Norling discounted the Arundel area for reasons that the area was growing out
from the coast and was separated from the subject site by a belt of open space. He
included North Tamborine and Coomera as potential trade areas in the short term and
until such time as a centre was established at Coomera. He did not disagree with the
forecast made by Mr McCracken on growth and population. He described a regional
business centre as a major node of employment servicing a large population base.
The definition he applied is in accordance with the chart prepared by Mr Humphreys.
On page 4 of his report he says -
"The extent to which each of these possible components are represented in a
regional business centre reflects the share of its development, the size
of population it supports and historical factors such as constraints to
development from past planning policies. "
In his opinion a sub-regional retail centre would require a catchment of 50,000 persons
within the region of Helensvale. This threshold is not expected to be reached before
2002. A sub-regional centre (one with an office park) is not expected to mature
before 2005 to 2010. He concedes that if Harbour Town progresses as planned, time
to mature would have to be extended. He recognises the potential competition of
Helensvale Plaza. It is the existence of this centre which forced him to conclude that
but for the railway station, the potential in the subject land was limited to showrooms,
etc., on the Gold Coast Highway frontage with light industrial uses to the west. He
says that Garden City and Chermside may now be described as true regional
business centres through office development and the regionalisation to those centres
of Government and semi-Government services. He traced the history of commercial
nodes in the suburbs of Brisbane from the days of the trams and spoke of the Sydney
experience which has a strong radial network of railway lines linking major regions with
the C.B.D. but having, in his opinion, poor cross-town rail links. Of the 15 designated
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sub-regional centres, he says that only one is located off the railway network. He is of
the opinion that with an upward population of 93,000 for the trade area which he
considered and with only 58,000 in the primary trade area, the catchment is
insufficient for a regional centre (one dominated by a major department store)
"especially considering the overlapping catchments with Harbour Town". Rather his
opinion is that the area could support a sub-regional centre dominated by a discount
department store with supermarkets and specialty stores and with office park.
Accepting the historical development of commercial nodes in Brisbane and the
Sydney experience, he believes the Albert Shire Council has recognised the benefits
which accrue with the integration of such centres with railway stations by providing in
the plan that regional business centres shall be integrated therewith. He sees the
provision of a station on the subject site as significantly enhancing the potential of the
area for office park development along similar lines to Coronation Drive, Milton, and
Upper Mt Gravatt in Brisbane.
Mr Woods who said that the site before the resumption was best suited for a
3-star development remains of that opinion after the resumption. He sees some
benefit flowing from the railway to the residential areas. He concedes that the
opportunity to expose the resort by entry statement to the Gold Coast Highway is lost
and that had a 5-star development been proposed, the railway would have had some
impact.
I come then to the evidence of the valuers.
Mr Gardiner listed the following matters in his report and valuation as matters
affecting the value of the land after the resumption -
"1.Lot 2 is intersected by the resumption, significantly reducing the versatility of the
remaining site and adversely affecting the use after the resumption.
2.The resumption created odd-shaped parcels, in particular those on Lot 2 west
of the resumed land.
3.The access to Subdivision C has been severed and any access which can
now be provided will be far inferior, particularly if only one access is
provided.
If a second access is constructed the cost will be borne by the developer. This
access would need to be suitable for an integrated resort and any
access provided would be inferior to that available prior to the
resumption.
4.A station site with the capacity for some type of commercial retail
development has been created by the resumption and is sufficient to
meet the needs of any future retail requirements.
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5.Subdivision C has had an area used for water storage resumed and such
water storage will have to be relocated.
6.The quiet enjoyment of the golf course land on the eastern severance of Lot 2
and on Subdivision C will be adversely affected.
7.The creation of an overpass to provide access to the western section of Lot 2
and on Subdivision C severs the triangular section created in the south
west corner and creates difficult physical access to the land. The
remaining sites will have very irregular shapes and will front an
embankment.
8.The need for a round-a-bout on the eastern section of Lot 2 encroaches onto
the limited high land available for residential development in the eastern
severance of Lot 2.
9.The initial easement over Lot 2 providing access to Subdivision C was
controlled by Mr Buckler and could have been dedicated as public road
in the future.
The new easement access is partially over railway land and total control has been lost.
This access will now be as an easement which is considered an inferior
situation.
10.The quality of the golf course after will be considerably down graded.
11.The standard of accommodation units will be considerably down graded as
a result of the general down grading of the nature of the project due to
the inferior nature of the site after the resumption.
12.The site prior to resumption presented a good quality development
opportunity to a developer. The site afterwards is a far inferior
development opportunity with considerable problems to overcome.
13.The standard of golf course after the resumption will be down graded to a
level where major tournaments will not be capable of being staged.
14.Second access has been severed. This second access point would be
used to carry service vehicles and heavy traffic from tournament events
staged on the site. Service traffic must now use the main access road.
"
Referring back to Figure 1 he speaks of the severed areas - firstly of the 10.511
hectares fronting the Gold Coast Highway and says that this parcel retains access and
exposure to the highway, its shape is somewhat awkward and its potential use
remains unaltered. He sees some slight enhancement to this area ($175,000 per
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43
hectare to $200,000 per hectare). Of the area of 2.348 hectares, he said that this
area would have difficult practical access once the overpass is constructed and will be
severed by the overpass road and will front the embankment leading to the overpass.
This area he would value at $80,000 per hectare. In dealing with Sub C and the
remainder of Lot 2, he considers that access is severely affected with a far lesser entry
statement available, that the proposed water supply lake had to be relocated and that
the quiet amenity of the land has been reduced. The potential market for units in his
opinion would be downgraded from secondary homes to primary homes. The whole
of this latter area is valued at a rate of $80,000 per hectare - a 20% reduction. The
difference in value before and after the resumption over the whole of the area reflects
a reduction of about 25%. No sales were advanced in direct support of these
conclusions.
In support of his opinion that the value of the land as one en globo site after the
resumption with the potential which he valued following the placement of the station on
the site at $10 million, Mr Knight referred to the sales of River Link and Coomera
Lakes. River Link comprises an area of 103.5 hectares. The land is situated east of
the Pacific Highway at Oxenford between Hope Island Road and the Coomera River.
He describes the area as consisting of about 35 hectares of elevated coastal plain in
the south-west and the balance being low coastal plain to a levee along the frontage of
the Coomera River. A two-thirds interest in this land was purchased for $8 million in
September 1989. For comparison purposes Mr Knight adopted a sale value of $12
million or $114,285 per hectare. He said that an application for rezoning - Special
Facilities/Tourist Facilities, Accommodation Units, Marina, Commercial Premises,
Service Station, Catering Business, Light Industry, Waterfront Industry and Motel -
received favourable consideration by the Albert Shire in March 1988 and was gazetted
in December 1988. He said that a number of variations to the original concept plan
have been lodged with the Council and that the most recent is based on an 18-hole
golf course which deletes the Service Station/Sports Centre site and part of the Light
Industry and Tourist Accommodation area. The sale land and the subject sites are of
comparable size. Mr Knight says that the sale land has superior exposure and
comprises a more diverse potential land usage but is inferior in availability and
accessibility. The sale property in his opinion is a superior property.
Coomera Lakes is on the western side of the Pacific Highway at Oxenford with
access via the Oxenford-Coomera Valley Road. The area sold is 120.267 hectares.
The sale was effected in July 1990 for $25 million with an operating dairy (3498 litre
daily entitlement) and sand and gravel reserves contained in 54.69 hectares of the
site. He said that CSR have paid $12.5 million as pre-paid royalties for the extraction
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rights for a 12-year extraction period. His analysis of the sale reflects a value of $11.5
million or about $95,000 per hectare. Mr Knight said that since purchase three zoning
applications have been made to the Albert Shire. These were made in respect to a
proposed private hospital/and medical centre; a proposed special business site and an
area of marina, waterfront commercial. To accommodate these proposals,
augmentation of Council services would be required and Mr Knight has been advised
by the Transport Department that major road interchange upgradings will also be
required. He said that the sale land has better exposure than the subject land (good
exposure to the Pacific Highway) but is inferior in zoning, access and availability of
services. By comparison with the sales, he formed the opinion that the subject site
after the resumption was worth $100,000 per hectare.
The significance of these sales in the workings of Mr Knight is found in the
relative highest and best use of the subject site before and after the resumption. The
assessment before the resumption was made on the basis of a development involving
a golf course and associated facilities - clubhouse, recreational facilities and a
residential precinct. No mention is made in the report of the potential in the land on
the Gold Coast Highway frontage for showrooms or uses of that nature although in
evidence he did concede that some of the area could be used for that purpose. The
valuation after the resumption is based on those uses plus the commercial/business
orientated uses for the area of the western severance of Lot 2. This approach differs
from that of Mr Gardiner in that before the resumption he has valued the Gold Coast
frontage land as Light Industry (showrooms, etc.) and after the resumption has
retained that potential with some slight enhancement due to the placement of the
station on the subject land. Problems which are readily apparent to me on the
evidence are that Mr Knight appears not to have placed any significant emphasis in
making the valuation of the land before the resumption of the potential of the Gold
Coast Highway frontage land for showroom type uses. Were that done, these latter
sales would to that extent have some form of comparability with the subject site, both
before and after the resumption. On the other hand, Mr Gardiner appears to have
ignored (given town planning advice) the potential reflected in the plan and moreover
the opinions reflected in both the 1988 approval (Figure 2) and the Weathered Howe
plan (Figure 3). Both these plans represent substantial changes to that which is held
out as being achievable prior to the resumption.
I propose now to identify features which have influenced me in arriving at an
assessment of compensation. In the process I may speak administratively rather
than judicially at times as this appears to be a case of a complex nature, both from the
point of view of assessing compensation and in resolving issues which would enable
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45
the area to be properly planned and developed.
The resumption occurred in February 1989. The general centre line of the
railway had been known since 1984. The positioning of the station was settled in
1986. Prior to any of this happening, Sub C was planned as a golf based resort -
Thomson and Wolveridge. That consent was followed in 1984 with the application
made over Lot 2. The plan drawn by Fryer Cozens and Quigan Pty Ltd depicted a
concept involving 2 x 9 hole courses, clubhouse, squash courts, tennis courts, pool,
driving range and a picnic/barbeque area with skateboard rink and BMX track.
Whereas the concept proposed for Sub C had an attractive flavour about it on the
plan, the concept proposed for Lot 2 did not. Sub C at the time of application (1982)
was landlocked. The plan provided for access from Millaroo Drive. The concept
covering Lot 2 did not provide for access to Sub C through Lot 2. This access, by
way of easement (Easement A) was granted in 1985. It would by then have been
reasonably anticipated that if access was to be taken from Millaroo Drive to Sub C, an
application to Queensland Railways for permission to gain access to the site from that
road would likely (if granted) have been by way of overbridge. It is now clear that
provision for an overbridge is available with construction thereof at cost to the
developer. Such would enable the parcel to be developed with the exclusiveness
which appears on the face of the plan to have been first intended. Were that the case
I would agree with Mr Knight that the resumption of a strip of land near Small Creek
would have minimal effect on the proposed development apart from any question of
injurious affection. It is by the placing of a road in parallel therewith which squeezes
this area and leads Mr Bolton to say that if a road is put there, the tenth fairway (which
was designed with knowledge of the railway) would have to be replaced. Further, by
1988, when the planners engaged by Mr Buckler gave thought to the best use for Lot
2 and that parcel to the west of the old railway reserve (Lot 4 on RP 156889), Millaroo
Drive is designed to connect with the Gold Coast Highway via the entry opposite
Discovery Drive. The Weathered Howe plan provides for a similar type of
development. The old railway land is incorporated in these proposals. For that to be
done the claimants would require ownership. The concepts are held out as examples
of proper planning with entry to Millaroo Drive from the Pacific Highway being
restricted to left-in and left-out or closed off. Looking at those concepts and the
position of the old railway reserve as it would bisect the plans and development, the
owner (the respondent) might say to the claimants that the land is worth the sum of the
enhancement its closure and sale would add to the development of the adjoining lands
and in accessing Millaroo Drive from the Gold Coast Highway. On the other hand, it
may be said that its closure and sale is in the public interest (traffic engineering,
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46
planning and development) and may also be seen in the nature of setoff against the
developer providing dedicated access to the railway station. My thoughts on the
matter are that such land should be made available for sale to the claimants at the
average price per hectare I have considered as reasonable for the
Commercial/Industrial lands fronting the Gold Coast Highway in determining the value
of the land prior to the resumption; that is, about $120,000 per hectare. This
represents a departure from the concepts put forward before and after the resumption
but it appears to me to be a sensible resolution of a problem which seems to have
become, over the course of time, caught up in technicalities or uncertainties which
have done little if anything in the way of resolving the problems and progressing the
development of the area. The next matter which crosses my mind while perusing the
concepts contained in Figures 2 and 3 is that the area of the station is 8.524 hectares.
The respondent encourages the development of airspace of this area. Should the
respondent enter into this commercial scene it should do so commercially and let the
area at a market rent. This would appear to be the intention. By taking the concept
envisaged in Weathered and Howe to its fruition as a regional business centre to the
full extent, it may readily be seen that the core of the area will occupy the airspace of
the station with the retained land being on the fringe. In this context, enhancement
which on the evidence will flow to the retained land for Commercial/Industrial uses
from the station is dampened to the extent that the potential for development of the
station area is ever present.
In Zoeller v. Brisbane City Council (1973) 40 C.L.L.R. 198, the Land Appeal
Court, in considering the question of enhancement to the appellant's balance land as a
result of a scheme for the construction of a dam on the North Pine River by the
respondent, at pages 204/5 said:
"......... In our opinion, the evidence supports the view that, once the project of the
dam began to assume some kind of reality, however far away its completion
may be enhancement in value began to flow from it to land in proximity to it.
This enhancement will probably continue to flow in this way with increasing
pressures as the work progresses, but in any event, accepting as the parties
have, that the subject land was resumed for a purpose of the dam, we find that
as at the date of hearing the balance land retained by the appellant, in addition
to any increase due to other pressures, had increased in value due only to the
influence of the dam to such an extent that this increase outweighed the value
to the appellant of the resumed land as at the date of resumption about two
years earlier.
......................................................
Section 20 of the Acquisition of Land Act 1967-1969 confines the Court to a valuation
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47
date in respect to only one of the matters to be considered and that is the value
of the estate or interest of the claimant in the land taken which must be
assessed as at the date it was taken. This is set out in subsection (2) of the
section. Just what is covered by the words 'estate or interest in the land taken'
does not fall to be considered by us in this case, but we can say quite plainly
that enhancement of the balance land retained by the claimant is not included
in the concept. In our judgment, it is only good sense that such enhancement
should be assessed according to the best evidence available to the Court at the
date of hearing and we consider that subsection (3) of section 20 also allows
the Member, if it does not require him, to take some prospective view of the
matter, to the best of his ability, to the time when the purpose or works for
which the resumed land is taken are completed, if this stage has not been
reached at the date of hearing. "
Since the railway in this area was first mooted, forecasts have varied as to the
date of completion. Variations have ranged from a completion date before EXPO in
1988 to early in the 1990s. The evidence at the hearing establishes that by the latter
part of 1995 the station and railway will be operative as far as Helensvale which will
act as a terminus until the line is completed to Robina some years later. The
designation of this area as a potential regional business centre on the strategic plan
followed the siting of the station on the land - that being the intent of the plan. Mr
Gardiner has allowed for a small measure of enhancement to the area of the balance
land fronting the Gold Coast Highway but only insofar as it enhances the uses for
which that land was best suited before the resumption. This assessment was made
on town planning advice. That advice, however, is in my opinion outweighed by the
opinions and the evidence of other witnesses including Mr Arbon, Mr Humphreys, Mr
Norling and by the planners who drew up the concepts contained in Figures 2 and 3,
the first of which was drawn up in 1988. I do not have any doubt on the evidence that
the highest and best use of the area is for a development envisaged ultimately in the
Weathered Howe concept. The time it will take to mature and constraints on that
timing by possible competition are features of concern. In this context I have found
the evidence of Mr Norling useful in that his forecasts appear conservative given the
optimism which is expected to flow from the completion of the works. In his opinion
the site could sustain a retail centre based, say, on Franklins. He believes that the
railway significantly enhances the area for Industrial/Office development. In this
sense and in the sense the uses proposed by Mr Gardiner are apt for the frontage
land, I can see the area not so much as being constrained by the existence of
Helensvale Plaza but rather by borrowing from that development. The site has some
notable advantages over Harbour Town - access, exposure and rail. Accordingly, I
find that the balance land of Lot 2 to the west of the railway is enhanced to a degree
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48
substantially beyond that contemplated by Mr Gardiner including the area of 2.348
hectares which will be severed by the road (easement) providing access by overbridge
to the balance area of Lot 2. The evidence regarding this balance area of Lot 2 which
I find of greatest significance comes from Mr Bolton who said that he would
recommend against use of the area for golf course purposes and from Mr Winders
whose evidence which I accept is that the accommodation unit area (on the ridge and
in the shape of half-circle) will be a noise disadvantaged area. The evidence of Mr
Gardiner is that the market for unit development in this area should be directed at
primary accommodation rather than secondary accommodation - holiday-type - units.
Mr Arbon said that the Council may permit of higher density. When the proposal
contained in the Weathered Howe concept is considered, this form of development
could easily be taken as a suitable use. The area will, in my opinion, either as an
entity or as one complementing a development on Sub C, be depreciated in value due
to the railway and the visual and noise pollution flowing therefrom. Coming then to
Sub C, I am unable to accept that the effect of the railway is anywhere near as bad as
has been made out by the witnesses for the claimants. Insofar as the
accommodation unit area is concerned due to the location of such areas to the
railway, the effects (depending upon buffering) would generally be of no greater
impact than may be expected at times from activity within the area. In his opinion it is
only unexpected peak levels which affect competitive golfing. The likelihood of this
occurring with a passing train seems to me to be as infrequent or remote as
unexpected disturbance which might arise from roads or other activity within the
development itself. In my opinion of the evidence, the exclusiveness and quality of
any development which could have been placed on the land before the resumption
may equally be placed and retained on the land after the resumption but with little
effect and this I see (in applying the principles of Edwards v. The Minister for Transport
(1964) 2 Q.B. 134; Syme v. The Commissioner for Railways (1988/89) 12 Q.L.C.R.
98) more so because of the resumption in respect of the areas on the northern ridge.
I may speak briefly now on the reasons listed by both Mr Knight and Mr Gardiner - on
the one hand in enhancing the value of the land overall and on the other in
depreciating the value of the land overall. Insofar as the reasons put forward by Mr
Knight are concerned, I accept them subject to the qualification that weight varies; for
example, the statement that "regional development will focus on the lands which have
the immediate proximity to the railway station" is categorical. The evidence suggests
that although this may or should be the case, circumstances may alter. In speaking in
terms of the 14 reasons given by Mr Gardiner, I find -
1.It is a fact that Lot 2 is severed. Access between the severed areas will be
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49
by way of an overbridge. I find that the use and versatility of that part of
the land east of the railway is affected. I find that the land west of the
railway is enhanced in value.
2.This statement is not supported by evidence which calls for any consideration
in terms of value save for 7 below.
3.I do not accept if access is taken to Sub C through Lot 2 that such access will
be far inferior to that which would have been available had this form of
access been taken prior to the resumption.
As to the second paragraph, it appears on my appreciation of the concept plans that if
Thomson and Wolveridge were followed, this access would be superior
in presenting the proposed development for the parcel.
4.The potential for competition from the station area is accepted.
5.I agree with Mr Knight that the resumption would have minimal effect on the
positioning of the lake were it to be placed in this location.
6.I accept the evidence of Mr Bolton that the area is limited for golf course
purposes.
7.There is some weight in this statement. On the evidence of Mr Eppell,
additional road dedication/costs may be necessary and aspect affected.
8.I find no evidence to support the statement as one affecting value.
9.Access as contemplated may be dedicated. When done the respondent will
dedicate land for the same purpose.
10.I do not accept that the quality of the golf course will be downgraded.
11.I accept that the standard of accommodation units may be downgraded
insofar as Lot 2 only is concerned - the existence and facility offered by
the station in conjunction with the uses which might be envisaged for the
lands west of the railway together with the evidence of Mr Arbon on the
probability of increased density being permitted, leads me towards a
conclusion that this area may be best suited for primary dwelling/unit
accommodation.
12.I accept this statement subject, however, to what has been said.
13.I do not accept this statement insofar as it relates to the development
contemplated for Sub C, given the placement of developments, roads,
recreational amenities, etc., within the development.
14.I find that this access was not available as-of-right and is not a matter for
compensation. It would appear to me to be a more practical form of
access to the parcel and bearing in mind the evidence of Mr Barrett will
not affect the presentation of the parcel for the uses intended.
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50
If I approach the assessment along the lines of the method employed by Mr
Gardiner, I would view -
1.the balance land (commercial/industrial) of Lot 2 (total area 12.859 ha) as
having a value as part of a large en globo parcel of $175,000 per ha
(depreciated from $200,000 per ha) = $2,250,325
2.the balance land of Lot 2 (east of railway) as accommodation unit land with
limited golf course potential (a total area of 21.454 ha @ $75,000 per
ha) = $1,609,050
3.Sub C as having a value of $85,000 per ha
(area 65.0586) = $5,529,981
This brings up a sum of $9,389,356 or about $9.4 million in round figures. As a
reflection of value per hectare overall, the rate is abt. $94,500. The exercise would
yield compensation in the sum of $1.1 million. Mr Knight derived his value after the
resumption by reference to the sales of River Link and Coomera Lakes. These sales
were used as bases because of the intended commercial content. They have,
because of that component, a degree of affinity with the subject land both before and
after the resumption. In view of the findings I have made as to enhancement and
depreciation, I have more confidence in the result just derived than by attempting to
derive an overall sum when vastly different uses are intended. As it stands, a slight
enhancement overall is derived. Thirdly, it seems reasonable in the circumstances of
this case where there is enhancement in value to a part of the land remaining (which is
difficult to quantify) and depreciation in value to parts of the land remaining (which is
difficult to quantify), to answer the question by posing whether one balances the other.
Were this done, compensation would equate the overall value per hectare of the land
taken; that is, 13.5 ha x $93,000 = $1,255,500 or $1,250,000 in market figures. This
being the highest of the sums considered it will be adopted in following normal
principles which require the resolution of doubts in favour of the claimants
(Commissioner of Succession Duties (S.A.) v. Executor Trustee and Agency Company
of South Australia Limited (1947) 74 C.L.R. 358).
I turn then to the issue of the items of disturbance.
Under this heading the items of claim are as follows:
.Legal Fees $ 1,200.00
.Valuation Fees $ 1,500.00
. Golf Course Redesign Costs $ 95,000.00
. Road and Culvert (Mr Cozens) $122,000.00
. Fencing $ 4,550.00
The only item in dispute is the third item. Evidence was given in support of this
claim by Mr Bolton. The evidence of Mr Winders dealing with noise pollution is also
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relevant. The sum is made up from costs/moneys expended in the need for a further
site inspection, need to present a new routing plan, need to resurvey boundaries of the
entire golf course (because the course was no longer to be allowed on the ridges) and
to duplicate the statement of the golf course construction schedule. The work
involved and an estimate of apportionment of costs was given by Mr Bolton -
Inspection of site, consultation with client and local
authorities and preparation of routing plan $ 30,000
Re-survey of golf course land $ 15,000
Recalculation of details contained in the golf course
construction schedule $ 50,000
A small version of the Thomson and Wolveridge plan is before the Court
(Exhibit 15). A copy of the golf course construction schedule drawn up by the firm
and dated May 1982 is also before the Court (Exhibit 16). This schedule contains the
program of works required, notes and estimates of costs. Mr Bolton was engaged in
1988. He had seen the Thomson and Wolveridge plan in the office of Burchill and
Partners. He designed his own golf course on parameters given him by Mr Buckler.
The contract with Mr Bolton (not before the Court) is of a general gross sum type of
contract providing for a downpayment and with some works being done by Mr Buckler.
In the opinion of Mr Bolton the works required under the headings claimed could not
be done for less. There is no evidence before the Court to the contrary. A claim of
this nature is payable if the Court is satisfied that the work and expenditure incurred
was not too remote and that it was a natural and reasonable consequence of the
resumption - Harvey v. Crawley Development Corporation (1957) 1 All.E.R. 504. The
causes may include not only the taking of the land but the effect such taking and use
has upon the retained land. Factually an area of about 1.1 hectares has been taken
from the parcel. In the northern area the strip taken would, in the opinion of Mr
Knight, have minimal effect on the lake proposed for the area. With that I agree.
This by itself would not call for a redesign of the golf course. Under the instructions
given by Mr Buckler, less higher land was made available for the course - clubhouse,
etc., and unit areas were pushed further down the ridges and further from the railway.
By doing that the impact of noise pollution is lessened and with that, compensation.
In the circumstances and in taking a broad minded approach to the matter I will allow
the sum claimed.
Accordingly, compensation under all headings will be determined in the sum of
One million, four hundred and seventy-four thousand, two hundred and fifty dollars
($1,474,250).
Interest on this sum at the rate of 11.75 per centum per annum is ordered to be
paid from and including the date of resumption up to and including the day
immediately preceding the date such sum is paid.
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Member of the Land Court
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Official source: https://www.sclqld.org.au/caselaw/QLC/1993/001