A block of land fronting Harrington Road, Harrington that was acquired in 2001 for the development of an aged housing facility is to be transferred back to MidCoast Council for $1, after developer, the Roche Group failed to lodge a development application by its June 19 deadline.
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Council adopted a recommendation to advise the Roche Group it would pass a resolution to require the the transfer of the land, or another parcel of land nominated by council for $1 if no application was lodged by the deadline at a strategic meeting on June 13.
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The recommendation arose after a recent community meeting held at Harrington raised concerns in relation to the construction of the aged housing facility.
The former Greater Taree City Council sold the block of land with a condition that the Roche Group would build an aged housing facility on the site.
The contract also included a clause enabling council to purchase the land back for $1 should construction not have substantially commenced by March 6, 2011.
Council resolved to enter into a memorandum of understanding (MOU) with the
Roche Group at an ordinary meeting on May 16, 2011 after the Roche Group sought an extension of time. The MOU stated a development application must be lodged before June 24, 2012; 12 months after the MOU was adopted.
On June 19, 2012 the Roche Group advised that they did not intend lodging a development
application by June 2012, when they presented a market
analysis report that concluded it was not viable to develop
such a facility until at least 2021.
From late 2012 until mid 2013, council undertook consultation with aged care providers to gain a better understanding of the aged care market.
Community consultation was also undertaken to determine their views on the need for aged care, during which it was suggested by the community that alternate sites for the facility be considered.
At an ordinary meeting on May 15, 2013, council endorsed a deed with the Roche Group, extending the timeframes of the original contract of
sale and including parameters around what is to be built and when.
The deed stated a development application for the originally purchased land or substitute land
approved by council must be lodged within 60 months of the date of the
agreement, by June 19, 2018.
In late 2017 the Roche Group sought council’s agreement to an alternative site in a report prepared for consideration in February, however prior to the meeting the Roche Group advised council they were reconsidering the site and requested the report be deferred.
They have now advised they no longer wish to proceed with the alternative site.
Given that there has been some 17 years since the original intention between the parties to
develop the facility and the fact that two extensions have been granted, council has determined it wishes to invoke its default powers.
MidCoast Council’s acting director of planning and natural ystems Paul De Szell said the deed was originally entered into with the aim of ensuring an aged care facility was constructed at Harrington to provide a service to that community.
“Harrington has a significant older population which continues to increase and the community has shown significant interest in the construction of an aged care facility,” Mr De Szell explained.
“Currently older residents have to leave the area if they require higher levels of residential care. This in turn breaks their connections to the local community.”
At a recent meeting councillors determined that if no development application was lodged by June 19 they would press forward on the terms of the deed to recoup the land.
The Roche Group now has six months to work with council on the transfer of the land.
The recommendation was passed with all in favour, excluding councillor Brad Christensen, councillor Claire Pontin and councillor Karen Hutchinson, who were absent.