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Wollongong City Centre - Section 94EE Special Contributions Levy

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					Ordinary Meeting of Council
2 March 2010                                                                                  Page 1


                                                                                     REF: CM15/10

WOLLONGONG CITY CENTRE - SECTION 94EE SPECIAL CONTRIBUTIONS LEVY
Report of Manager Environmental Strategy and Planning (DG) 13/01/10 SU23919
PRECIS




                                                                                                       ITEM 1
The Minister for Planning has agreed to Council’s request and removed the 1% State Government
Special Contributions Levy that applied to the Wollongong City Centre. The Minister has also
recommended the refund of funds collected under the State levy. Development in the City Centre
will still be subject to the 2% Section 94A levy.

It is recommended that Council authorise the refund of the $140,446 received under the
Section 94EE Special Contributions Levy.

RECOMMENDATION
The $140,446 collected under the Wollongong City Centre Section 94EE Special Contributions Levy
be refunded.


BACKGROUND
In February 2007, as part of the Wollongong City Centre Revitalisation Strategy, the Minister for
Planning established the Wollongong City Centre as a Special Contributions Area which enabled the
creation of the special contributions levy under Section 94EE of the Environmental Planning and
Assessment Act 1979. The Minister also agreed to increase the Section 94A levy within the
City Centre from 1% to 2%. This money is used towards local infrastructure.

The Minister issued a Direction to Wollongong City Council to impose, as a condition of consent
on all development with a cost of more than $250,000 and which increases the gross floor area on
land within the commercial core zone, a requirement to pay an additional 1% levy under
Section 94EE. The monies were to be collected by Council and forwarded to the Department of
Planning to contribute to the Wollongong Railway Station upgrade and Wollongong Harbour
redevelopment.

The condition was included on two (2) development consents to the value of $140,446 which has
been paid.

On 28 July 2009, Council resolved to request that the Minister for Planning remove the
Special Contributions Levy (additional 1% levy) applicable to land within the commercial core of the
City Centre as:

-     The additional 1% levy payable under Section 94EE does not apply to any other regional city;
-     The additional 1% levy discourages development and investment from occurring in the
      commercial core; and
-     The NSW Government no longer seeks development contributions for rail and harbour
      infrastructure.

The Property Council of Australia (Illawarra Division) supported Council’s request to remove the
levy. At that time, only one payment of $7,120 had been received. Subsequently, the second
contribution of $133,325.93 was received in January 2010.




                                                                             Wollongong City Council
                                                                                     Ordinary Meeting of Council
         Page 2                                                                                     2 March 2010




         PROPOSAL
         On 11 January 2010, Council received advice that the Minister for Planning had issued a direction
         removing the special contributions levy on 30 December 2009.
ITEM 1

         The Minister’s decision to authorise the removal of the levy became effective on 30 December 2009.
         The Minister’s letter encourages Council to refund the funds collected.

         Council collected the levy on behalf of the NSW Department of Planning and the funds were to be
         transferred to the Department. Given that the Special Contributions Levy has been removed, it is
         appropriate that Council refund the monies to the two (2) parties.

         The removal of the Section 94EE levy does not affect the 2% Section 94A levy which will continue
         to apply to the Wollongong City Centre.

         CONCLUSION
         The Minister for Planning’s decision to support Council’s request to remove the 1% Special
         Contributions Levy from the Wollongong City Centre is a positive incentive to encourage
         investment in the City. It is appropriate that Council refund the monies already collected on behalf
         of the NSW Department of Planning.

           Name                                                  Position Title
         Author:
         David Green                                 Land Use Planning Manager
         Authorised by:
         Renee Campbell                              Manager Environmental Strategy and Planning
         Andrew Carfield                             Director Planning and Environment
         David Farmer                                General Manager


         ATTACHMENTS
         There are no attachments for this report.




         Wollongong City Council

				
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Description: Wollongong City Centre - Section 94EE Special Contributions Levy