A DEVELOPER who lost thousands on a piece of land in Batemans Bay claims it was because of a council policy.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The developer, who did not wish to be named, had plans to build a 12-unit complex on Clyde Street land and had a development application approved by council.
The block was owned by the Ison family and was listed for $1,000,050.
After contracts were exchanged and the developer put down a deposit of $105,000 the bank pulled out from funding the project because of a clause in a policy that affected the block.
The flood inundation policy clause stated if the property was flooded three times in a year all infrastructure had to be removed.
The developer, who did not wish to be named, said that the flood inundation plain policy made the project nearly impossible.
“Eurobodalla council is the only one of a few councils to adopt the policy,” he said.
“I don’t understand why more council didn’t take it up.”
The developer said his business had since gone into liquidation because of the money spent on this project without any return.
“I lost $200,000,” he said.
“Who is going to apologise to the land owners and developers who lost thousands because of this policy.
“Council just do what they want to do.”
Out of the 12 units, 10 were sold and exchanged off the plan prior to the bank pulling out.
The two-bedroom units were to cost an average of $380,000 and would have created growth for the area, according to the developer.
“It would have created jobs and pumped money into the area,” he said.
“I saw growth and potential in the area and I’m disappointed I couldn’t go through with the development.”
He said council was “okay” to deal with through the development application process, despite wanting to change the design.
“They wanted it to match the other buildings in the street,” he said.
“You can’t match a modern development to a house built 30 years prior.”
A council spokeswoman previously said the property had been identified as being at risk to inundation for more than 25 years.
A council spokeswoman last week said the site was identified as vulnerable to inundation in a 1989 Batemans Bay Oceanic Inundation Study, undertaken by the state government.
“Council has a legal obligation to consider coastal hazards including sea level rise when making planning decisions,” she said.
“Where council fails to do this, council is potentially liable for future damages.”
The spokeswoman said the proponent submitted a study on the potential impacts of sea-level rise on the property to support the development application.
“The study confirmed that potential future rises in sea-level would adversely impact the land and result in regular inundation in the future,” she said.
“Council approved the application based on the assessment of the information submitted, and mitigation measures that were proposed by the proponent.”