Parliamentary Committees

Public Works Committee: Noarlunga Downs/Port Noarlunga Project

Mr BROWN (Florey) (11:02): I move:

That the 91^st report of the committee, entitled Noarlunga Downs/Port Noarlunga Project, be noted.

This project, delivered by Renewal SA, is part of a broader state government strategy intended to address housing pressures by delivering public housing and affordable homes. Last year, the government released a plan for A Better Housing Future, providing a range of initiatives and projects with the goal of delivering quality public housing, more affordable homes, more support for people to buy homes, more affordable rental opportunities and greater protection for people renting. Working from these goals, the project also contributes to targets outlined in the National Housing Accord.

Renewal SA (the agency) has identified approximately 22 hectares of land to the east and west of Lovelock Drive in the Noarlunga area that is suitable for development. With a project aim of creating a diverse community in a high-quality setting of mixed density housing, the project master plan proposes the construction of 626 new dwellings, with 15 per cent to be affordable housing. These plans include serviced allotments for the SA Housing Authority to deliver 80 new dwellings, which equates to a 12½ per cent concentration of public housing.

The mix of dwelling ownerships will benefit the broader community, in addition to providing new infrastructure, quality open spaces and streetscapes and extensive tree canopy that will assist in creating a high-quality neighbourhood amenity. The development will also benefit from its proximity to an established neighbourhood and is in close proximity to a major retail centre, transport interchange, strong transport connections, schools and sporting clubs.

The 22-hectare project is comprised of seven allotments across three distinct land parcels: 14.8 hectares over three allotments are under freehold ownership of the SA Housing Trust; 1.3 hectares, comprised of three allotments, are owned by the Minister for Infrastructure and Transport; and a single allotment of 6.5 hectares previously owned by the Minister for Recreation, Sport and Racing is now under the ownership of Renewal SA. The agency is also considering an opportunity to acquire a one-hectare land parcel from the City of Onkaparinga.

The works will create 526 traditional dwellings and 100 apartments, including 80 SA Housing Trust dwellings, aim to build a minimum of 90 affordable housing dwellings, build housing that responds to future climate needs, and create new infrastructure, roads and enhanced streetscapes with a 25 per cent tree canopy target.

Renewal SA estimates the project will cost $103.2 million, consisting of civil and infrastructure works, landscaping, public realm, the acquisition of land parcels, and associated professional consultancies. It is estimated that the SA Housing Authority will spend $37.4 million in the construction of its 80 dwellings within the project, including the purchase of land.

Renewal SA estimates operating costs of $17.7 million over the project life, and will maximise market sales and partnership opportunities in the housing sector. It is anticipated that sales of the developed lots and built forms will provide approximately $130 million in revenue. In total, the project is estimated to contribute $92.4 million to gross state product over the construction period. It is also anticipated to support an average of 90 full-time equivalent jobs, peaking at 144 in 2027-28. Cabinet approved the whole-of-life funding for the project in May of this year.

The proposed development, including civil and landscape works and sales of allotments, is scheduled to commence in 2025, and the agency has engaged most of the key consultants for the project. It is anticipated that the first residents will move into homes in February 2027, with the project anticipated for full completion in June of 2032.

Project delivery will follow best practice principles for procurement and management following Renewal SA's project management framework. There is the possibility of failure to acquire the council reserve land, which could result in compromising delivery of the master plan, which is considered in the framework. The project will also need minor upgrades to two key intersections controlled by the Department for Infrastructure and Transport, and it is expected further works will be necessary due to the increased volume of traffic created by the development.

Renewal SA has also engaged SA Power Networks and SA Water to minimise potential service connection delays and reduce any program and budget impacts. Similarly, the agency is in consultation with the local council and PlanSA to acquire any necessary development approvals. Furthermore, Renewal SA has highlighted there are some uncontrollable variabilities with market sales and the agency has considered this in the marketing budget and states that there are benefits in the nearby facilities, available transport, open space and access to amenities in comparison to competing developments.

The Noarlunga project is targeting a Green Star-Communities five-star rating. Green Star is a weighted tool that evaluates sustainable attributes of the planning, design and construction of community-scale developments. These targets include providing diverse, well-connected healthy places to live, developments that maintain and restore the natural environment, and environmental leadership and sustainability.

An Aboriginal cultural heritage survey indicates the possibility of encountering archaeological features and artefacts, and an archaeologist has been employed to survey the area. Preliminary results recommend further physical exploration, and Renewal SA will be in ongoing consultation with the Kaurna Yerta Aboriginal Corporation throughout this process. An application has been made to the Minister for Aboriginal Affairs for authorisation to disturb Aboriginal sites and objects if necessary. A cultural heritage management plan, agreed in consultation with Kaurna, will be adhered to during project delivery.

The south-west portion of the Goldsmith Drive site is subject to a heritage place and Renewal SA is conscious of protocols that the adjacent developments do not dominate, encroach on or unduly impact the settings of this place.

Since the public announcement of the projects in 2023, the agency has been in active consultation with key project stakeholders. Ongoing consultation with the City of Onkaparinga is working towards a heads of agreement, and the revocation process is underway. Renewal SA is also in consultation with Department for Infrastructure and Transport regarding land acquisition, as well as the expected increased traffic requirements in the area.

SA Power Networks has given preliminary advice that there are no foreseeable capacity issues, with consultation with SA Water continuing. A community and stakeholder engagement plan has been developed, with 3,400 properties notified by mail, and face-to-face engagement sessions scheduled from July this year.

The committee examined written and oral evidence in relation to the Noarlunga Downs/Port Noarlunga project. Witnesses who appeared before the committee were: Shane Wingard, Acting Executive Director, Property and Major Projects, Renewal SA; Peter Gatsios, Acting Executive Director, Residential Project Delivery and Assets, Renewal SA; and Michael Wood, Executive Director, Commercial and Business Services, Renewal SA. I thank the witnesses for their time.

Based upon the evidence considered, and pursuant to section 12C of the Parliamentary Committees Act 1991, the Public Works Committee reports to parliament that it recommends the proposed public work.

Motion carried.