1. LAND USE PLANNING Does It Work? Or Is It Self Defeating?
Stewart Wall
Road Infrastructure Manager
Logan City Council

2. The Disclaimer Entirely my own observations and opinions
Not policy of my current or any former employer
Purely an infrastructure based view of a very complex legislative, social and political issue
Names and locations have been changed to protect the innocent and the guilty
……and it’s a little bit tongue in cheek!

3. Where Are We Going? History and background What’s the problem?
A few examples
Why do we get it so wrong?
Is there a solution?

4. Legislative History Undue Subdivision of Land Prevention Act 1885
City of Brisbane Act 1924
City of Mackay and Other Town Planning Schemes Approval Act 1934
Local Government Act 1936
City of Brisbane Planning Acts 1959 & 1964
Local Gov’t Planning and Environment Act 1990
Integrated Planning Act 1997
Sustainable Planning Act 2009

5. Infrastructure Planning History
Town Plans predate infrastructure planning/charging by several decades
Late 1970s - water and sewerage headworks charging based on demand planning
1990s - some local governments introduce road headworks policies
IPA (1997) requires comprehensive infrastructure planning and charging policies linked to land use planning

6. An Example Small town Traditional Main Street
Surrounding area is older style residential
Some travel related services spread along the highway that passes through town

7. What the Plan Envisaged
LEGEND
Residential
Business/
Commercial
Special
Purpose

8. What Actually Happened
LEGEND
Residential
Business/
Commercial
Special
Purpose
Development
Unused re-development site

9. Drivers Land in small town closely held
Becomes available due to significant life events not just rational economics
‘What can I do on this land?’ not ‘where is the best site for what I want to do?’
Accidental developers
Development is a compromise between affordability, opportunity and economics

10. Some Observations
Development heavily influenced by land already owned or available cheaply
Often very different to pattern and sequencing in plans
Exacerbated by IPA where nothing is prohibited
Planned infrastructure doesn’t match actual demand locations
Infrastructure provision ‘on the run’

11. Planning creates forces that promote unplanned outcomes
Market Realities
Planning creates forces that promote unplanned outcomes

12. Sequencing and Structure Plan

13. Current Outcomes
Demand for land purchase
Current DA or interest

14. It’s Raining Money! Property owner’s perception of a change in zoning
Un-earned windfall
Over-inflated expectations

15. Development Economics
Developers are not charities – ROI is essential
The profit equation is simple
Sale price is determined by the market
Everything else reduces eventual profit!
Land cost is ~ 1/3 of total
Development Equation

16. Developer Issues Owner has overinflated price expectations
Owner has no understanding of actual development costs still to be incurred
Fragmented ownership
Difficult to accumulate large holding

17. In Summary Master planning or ‘rezoning’ leads to:
Increased owner expectations
Reduced expectations for other owners
Better financial returns outside of area
Easier to accumulate holding outside of area
Demand for early acquisition of land for infrastructure

18. Are There Options? Reduce the windfall effect
Capture some of the increased value that forward planning creates
Construct PIPs in such a way that Council can resist demands for out of sequence infrastructure

19. Thanks for Listening
Any Questions?