Activate or Vacate - Warning to Owners of Vacant Land

LG Leader November 2017

The Planning, Development and Infrastructure (Promoting Use of Vacant Land) Amendment Bill 2017 was introduced into the Legislative Council on 18 October 2017.  The Bill proposes a leasing scheme that enables a council to compulsorily take a statutory lease over vacant land, by notice in the Gazette, where it is satisfied the following criteria has been met:

1. the owner of the land is unwilling or unable to undertake development on, or make use of, the land within an appropriate period and to the extent the council considers is sufficient; and
2. it is appropriate that the land is used for a public purpose (which is limited to the land being used as a public park, playground or for the purpose of recreation or sport or for any other purpose declared by the Minister); and
3. the council has taken reasonable steps to negotiate the acquisition of an interest in the prescribed land on reasonable terms so that the land may be used for a public purpose (but no agreement has been reached).

Where a statutory lease is taken over vacant land:

• the land can only be used for the limited public purpose specified by the council in the Gazette notice and no rent is payable by the council;
• the land owner retains a right to access the land for specified purposes;
• the council must indemnify the owner for liability arising from the council’s occupation of the land;
• the land is not rateable by virtue of section 147(2)(f) of the Local Government Act 1999; and
• the lease will cease to have effect when the landowner is ready to develop the land.

The Bill has clearly been engineered with the former Le Cornu site on O’Connell Street front of mind (which site has been left vacant for years to the ire of residents, the Council and State Government). However, the powers that the Bill proposes to confer will, should it become law, be available to all councils, not just the City of Adelaide.

It remains to be seen whether the Bill will be passed, particularly as it raises questions regarding how far legislation can impinge on the rights of a land owner. We will keep you updated should the Bill become law.