3. Infrastructure demands and contribution projects

Council has obtained population growth forecasts from Forecast.id which are outlined in the table below by planning area (see Figure 2.3.1 for planning areas).

These projections forecast that Shoalhaven's population will grow by approximately 20,000 people by 2036. Subject to land release, the areas that will experience substantial growth are Planning Areas 1, 3 & 5, being the land primarily around Nowra-Bomaderry, Jervis Bay-St Georges Basin, and Milton-Ulladulla respectively. In addition to these main growth areas, in Planning Area 4, land around Sussex Inlet will also support population growth while Planning Area 2 is predicted to experience only low growth unless additional land release occurs.

The Illawarra-Shoalhaven Regional Plan, developed by the New South Wales State Government, details that an additional 8,600 dwellings will be required in the Shoalhaven LGA to 2036, whilst Council’s forecasts predict that 11,510 new dwelling will be required in this timeframe. The Illawarra-Shoalhaven Urban Development Program: Update 2016 identified that existing vacant urban land and existing investigation areas can potentially accommodate 12,600 additional dwellings. The majority of land is located around the major centre of Nowra Bomaderry and the major towns of Ulladulla and Vincentia (which includes the Jervis Bay and St Georges Basin areas). Additional dwelling supply will be accommodated through infill medium density development within the existing towns.

To assist in determining which land parcels are likely to contribute to development demand, Council has analysed the development potential of land parcels within the various defined contribution project catchment areas. This assessment for population projections up to 2036 and beyond, and supporting strategies or plans, has identified the need to provide community infrastructure in key planning areas or specific development precincts (i.e. new release areas and infill development). Therefore, the different contribution project catchments vary in size according to the extent of demand for the project generated by development.

The development apportionment for some projects detailed in this Plan (citywide and whole planning projects) is based on the above population projections and equivalent tenement (ET) is based on an average size of 2.31 persons per household (2.31 persons based on person counted in households/ number of households occupied) which was identified in the 2016 Australian Bureau of Statistics Census.

The contribution projects detailed in this Plan are based on the analysis of development capacity and development trends. If the pattern or rate of development changes, Council may update this Plan to alter or delay the priority of project delivery and/or the contribution rate applied to the project.

A contribution project is any infrastructure item included in this Plan that is required as a consequence of anticipated development addressed by this Plan.

A contribution project is the carrying out of the works and the acquisition of lands included in this Plan. Such projects may vary from provision of passive open space areas to road/traffic management improvements where a nexus has been identified with the development. Nexus is further discussed in Section 3.5.

In some circumstances, a development that is not currently permissible through Council's planning controls may be permissible under a State Environmental Planning Policy due to the adjacent zone permitting that development. Recognising that the development demand for this land may have not been identified in this Plan, Council may levy the contribution projects which are not identified in this site/zone but are levied in the adjacent zone.

In accordance with this Plan, Council will require development contributions for the following categories of key community infrastructure that have been (or will be) provided to meet existing and future population demand. The project code reference for this infrastructure is shown in the brackets.

• Active Recreation (AREC)
• Car Parking (CARP)
• Community Facilities (CFAC)
• Drainage (DRAI)
• Fire Control Centre (FIRE)
• Passive Recreation (OREC)
• Roads/Traffic Management (ROAD)

In addition to key and additional community infrastructure, Council will require development contributions for:

• Management and administration activities associated with this Plan; and
• Supporting information and background studies for the contribution projects identified in this Plan.

The total amount of Plan management and administration fees that can be charged per development consent will not exceed 10% of the total cost of contribution infrastructure projects levied in the consent. The project code reference for contributions plan management is MGMT.

This Plan requires contributions from development. Such contributions are required to be reasonable in all circumstances. Two key principles underlying reasonableness in development contributions are nexus and apportionment.

Nexus is the relationship between the anticipated types of development in the area and the demonstrated need or demand for additional or augmented community infrastructure created by those developments. Council has considered the following in preparing this Plan:

• Whether the anticipated development actually creates a need or increases the demand for particular items of community infrastructure?
• What specific items of community infrastructure will be required to address that demand, and where are they to be located?
• Are existing facilities suited to providing for that demand (or a component of it)?
• What area or catchment will be served by the required items of community infrastructure?
• When do the facilities need to be provided to meet the demand of the development (i.e. thresholds or timing)?

A description of the nexus between development and infrastructure has been prepared for each contribution project listed in this Plan.

Apportionment is concerned with identifying the demand and cost component of community infrastructure that is attributable to anticipated development. More information on how contribution project costs are apportioned is included in Section 3.8 of this Plan.

For completed (that is, recoupment) projects, the contribution project cost is the completed cost of the project to Council, indexed from the date of completion to the date of preparing this Plan using the Consumer Price Index (CPI) (All Groups) or CPI for Sydney.

For future projects, the contribution project cost is estimated at the time a project is included into this Plan. Contribution project costs may include land, works or building costs and are based on one or more of the following:

• relevant industry construction guide;
• construction rates from Council delivering similar projects; and
• construction industry quotes.

Land acquisition estimates identified in this Plan are based on an independent land valuation. These land acquisition estimates form part of the overall project estimate.

In determining the contribution project estimate, some or all of the following elements may be included:

• survey, design and other studies costs;
• acquisition of land costs;
• construction of capital works costs (which includes a project contingency amount for any unforeseen costs);
• costs of procuring buildings or works;
• service/utility provision and relocation costs;
• associated ancillary works costs;
• associated restoration works costs; and
• project management costs.

All contribution project costs are exclusive of GST.

Details of actual costs and estimates for all contribution projects are provided in this Plan.

In accordance with this Plan, existing and future development demand for community infrastructure is, in most circumstances, measured in equivalent tenements (ETs).

Apart from ETs:

• development demand for drainage is calculated as a metre square (m²) rate to reflect the drainage catchment area for associated infrastructure;
• development demand for public parking facilities is based on the number of spaces that a development cannot provide onsite (in accordance with Chapter 21 Car Parking and Traffic of Shoalhaven Development Control Plan 2014); and
• where a contribution project relates to a quarry site, the development is levied an annual monetary contribution related to the annual tonne of material exported from the site which is in addition to the original contributions paid.

As detailed in Section 3.4 of this Plan, the total amount of plan management and administration fees that can be charged per development consent will not exceed 10% of the total cost of contribution infrastructure projects levied in the consent.

It is important to note that, in calculating a contribution under this Plan, credit (in ETs, m², or parking spaces) is given to recognise the original approved land use of the development site prior to any subsequent development consent that requires contributions in accordance with this Plan.

Note: the equivalent tenement (ET) rates used in this plan are not calculated on the same ET rate used by Shoalhaven Water for Section 64 charges.

Drainage Calculations

For subdivision, drainage is calculated as per the total englobo land area within the relevant drainage catchment area. For building approvals, drainage is calculated as per the total development area (building footprint and/or car park/landscaped area) within the relevant drainage catchment area. Developments that provide onsite stormwater detention to pre-development flows are not required to pay a contribution towards drainage projects.

Types of Development

It should also be noted that different categories/types of development are to be levied for community infrastructure according to the demand attributable to that particular category or type (e.g. residential development may have different infrastructure demands to those generated by commercial/industrial development). The relationship between each of the contribution project categories and the different development categories and types that make up each of the development types are shown in Schedule 4.

The ET rate applied to each individual development type and the relevant community infrastructure levied is detailed in Tables 3.7.1 - 3.7.4 below.

Table 3.7.1: ET rate applied to residential developments

The application of ETs for development under State Environmental Planning Policy (Affordable Rental Housing) 2009 (i.e. based on the number of bedrooms per unit) applies a rate recognising that demand for community infrastructure is less for this development type.

Where a room in a development is:

• Proposed as a “study”, “home theatre”, “media room” or the like; and
• Is of appropriate dimensions and capable of being used as a bedroom,

it is to be treated as a bedroom for the purposes of calculating contributions under this Plan, where Council considers it reasonable to do so.

Table 3.7.2: ET rate applied to tourism accommodation developments

Tourism accommodation development includes:

• Manufactured home park / estate developments
• Caravan / tourist parks, both long and short term occupancy developments
• Motel developments
• Bed & breakfast developments
• Guesthouses
• Camping grounds

No exemptions for contributions apply to seasonal fluctuations related to tourism accommodation developments due to the requirement for Council to provide community infrastructure for peak season usage.

A manager’s residence as part of a tourism accommodation development is levied contribution projects as per a residential development.

Table 3.7.3: ET rate applied to commercial developments

Recognising that a developer in some circumstances may not be able to determine the final building/land use of a commercial development, the lesser contribution rate will be levied and accordingly conditioned for this use in the consent. Should the developer then determine at a later stage that the final building/land use may change to higher use (e.g. retail use) a Section 4.55 development consent modification will be required to change the use. Council will levy the difference in the contribution rates.

A manager’s residence as part of a commercial development is levied contribution projects as per a residential development.

Table 3.7.4: ET rate applied to industrial developments

A manager’s residence as part of industrial development is levied contribution projects as per a residential development.

Other requirements for commercial and industrial development

Commercial and industrial development which requires a traffic impact statement or traffic impact study may require specific ETs calculated based on an assessment of traffic generation from the development. This requirement is due to Council being unable in every instance to pre-empt the specific demands of some development. The greater of ETs determined by the rates applied in this Plan and the separate assessment of traffic generation will be levied on development.

Such development must also meet the requirements of Chapter 21 Car Parking and Traffic of Shoalhaven Development Control Plan 2014. Therefore, car parking contributions will be calculated accordingly if the required car parks cannot be provided onsite in areas detailed in this Plan where Council proposes to provide centralised car parking facilities. The outcome of this calculation determines the car spaces which development will be levied. Where car parking contributions are to be paid, the calculation of the rate is not rounded up or down, e.g. if the calculation is 4.4 car parks then the contribution rate per car park is multiplied by 4.4 to determine the contribution total.

Private residential care facility developments

• Residential care facility development other than facilities provided by social housing providers are only levied contributions for drainage, car parking, roads, fire, and plan management.
• The ET rate for a unit development will be measured as per multi-unit (i.e. number of bedrooms per unit) for residential development.
• A bed hostel will be charged 0.2 ET per bed.

Miscellaneous/other forms of development

Miscellaneous or other forms of development not identified above will be assessed on merit and the development demands created by the proposal. This may require an amendment of this Plan to include additional contribution projects that are required to meet development demands created by the proposal. This will require reviewing community infrastructure demand indicators from development such as Roads and Maritime Services guidelines for traffic generation.

Residential subdivisions which are not levied an open space contribution project

In some circumstances the open space (passive recreation) demands of a residential subdivision have not been identified in this Plan due to the unknown configuration and/or constraints of the subdivision area. In the absence of an open space (passive recreation) contribution project, a subdivision application may still be required to provide open space in accordance with the requirements of Chapter 11 Subdivision of Land of Shoalhaven Development Control Plan 2014 and Council's adopted Community Infrastructure Strategic Plan following an assessment of the application under Section 4.15 of the EP&A Act.

Subdivision of developments approved prior to the commencement of the Contributions Plan 1993

Development contributions will not be charged for the subdivision of a development that was approved prior to the commencement of the original Shoalhaven Contributions Plan 1993 (2 July 1993).

A contribution can only be imposed on a development if it is reasonable in the circumstances. Part of the assessment of reasonableness is to ensure that the contribution project only ever reflects development demands and not other demands. Therefore, only the costs of community infrastructure that are attributable to the anticipated demand created by future development can be levied on future development, and Council is responsible for provision of community infrastructure to meet demand generated by the existing development or development not located within Shoalhaven LGA. This division of responsibility to provide community infrastructure is known as apportionment.

The cost of contribution projects in this Plan will be either fully or partly met by anticipated development in a contribution area, depending on the above considerations. Where the cost is only partly met by future development, apportionment rate of percentage is shown in each of the contribution project descriptions in this Plan. In circumstances where a contribution project is required solely to meet future development demand, the project cost is apportioned 100% to future development projects.

Development is generally required to fully fund the following types of contribution projects:

• Commercial area car parks – where, instead of providing parking on the site of a commercial development, car parking is provided in centralised public facilities in a contribution area. Contributions are based on the number of deficient on site spaces assessed in accordance with Chapter 21 Car Parking and Traffic of Shoalhaven Development Control Plan 2014.
• Rural residential roads – where the demand to provide road improvements is directly associated with increasing development density in a rural contribution area.
• Service lanes – where the demand to provide a service lane is directly associated with increasing intensity of land use in a town centre contribution area.
• Quarry road upgrade - where the demand to provide road improvements is directly associated with a quarry activity.

The anticipated likely development demand yield has been assumed in accordance within the environmental planning instrument that applied to the land in the contribution project catchment at the time this Plan was made. When assessing the likely development demand yield, the following elements are considered:

• existing land use;
• development allowed for in accordance with existing zoning and other development controls;
• environmental constraints; and
• recent trends of development in the area.

Other elements impacting on development yield, such as threatened species, flooding, etc. may or may not have been taken into account depending on whether information about these constraints was available at the time this Plan was prepared. Detailed assessments of site planning constraints are ordinarily undertaken by the applicant at the development application stage. Where Council becomes aware of a significant development constraint that may influence the demand, delivery or apportionment of a contribution project, a subsequent review of this project and its inclusion in this Plan will be undertaken.

For most projects identified in this Plan, the contribution project rate is calculated by dividing the project estimate or (if completed) the actual project cost by the total ETs or m². This calculation is shown in the formula below for both existing and anticipated development within a defined contribution project catchment area.

Therefore, the contribution rate for these types of community infrastructure is determined by dividing the cost by the anticipated development demand yield within a defined demand catchment area. This calculation is shown below.

This Plan authorises Council, via the imposition of a condition of development consent under 7.11(3) of the EP&A Act, to require in connection with any development on land to which this Plan applies (and in addition to any monetary contribution that may be sought), the dedication free of cost to the Council of any part of the development site that is land that is to be acquired under this Plan. A condition imposed under 7.11(3) is a condition that requires the payment of a monetary contribution towards the recoupment of the cost of public amenities or public services that Council has already provided that would benefit the development (not yet to be provided as per 7.11(1)).

The area of land that may be required in the consent shall not exceed the area equivalent to the monetary contribution otherwise authorised by this Plan. Council will credit only the amount provided in the Plan.

For the purposes of this clause, the value of the land is to be calculated in accordance with the value of the land as indexed by the Land Value Index established under this Plan.

The monetary development contribution otherwise authorised by this Plan shall be reduced by an amount corresponding to the value of the land required to be dedicated.

Where the value of the land exceeds the monetary development contribution otherwise authorised, the developer may offer to enter into a voluntary planning agreement dealing with an appropriate settle-up in exchange for the dedication of the remainder.

Where land cannot be dedicated via the imposition of a condition of development consent, it may be appropriate to consider whether such an outcome could be achieved via a voluntary planning agreement.

The delivery of community infrastructure is programmed in its final design stages in Council’s Delivery Program and Operational Plan (DPOP) which details a 3-4 year delivery program. Prior to infrastructure being detailed in the DPOP, an indicative time frame for delivery of contribution projects, subject to the progress of development, is detailed in this Plan.