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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
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HOUSING AND URBAN DEVELOPMENT (ADMINISTRATIVE ARRANGEMENTS) (URBAN RENEWAL) AMENDMENT BILL

Introduction and First Reading

The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Planning, Minister for Industrial Relations, Minister for Business Services and Consumers) (15:40): Obtained leave and introduced a bill for an act to amend the Housing and Urban Development (Administrative Arrangements) Act 1995; and to make related amendments to the Development Act 1993. Read a first time.

Second Reading

The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Planning, Minister for Industrial Relations, Minister for Business Services and Consumers) (15:40): I move:

That this bill be now read a second time.

Since 2008, the government has been progressively reforming the state's planning system to make it more competitive, efficient and responsive to community concerns, environmental and economic needs. The broad reform direction outlined in the 30-Year Plan for Greater Adelaide, released in 2010, is for Adelaide to focus increasingly on urban renewal, becoming a more liveable, affordable, sustainable and competitive city over time.

Recently, significant progress in realising this vision was achieved through our successful reforms to the planning framework for the city, which have been broadly welcomed by industry and the community. All members would be aware of the significant costs associated with traditional urban expansion. In this regard, Adelaide has reached a crucial turning point, and the time has come to rule a line under continuing urban sprawl. We cannot allow our city to continue spreading northward and southward without check while underutilising our inner city suburbs.

In short, this model is neither economically nor environmentally sustainable for Adelaide to continue with this model of growth. That is why three years ago we set out our vision for a new urban form in the 30-Year Plan for Greater Adelaide. The plan seeks to rebalance the focus from urban expansion to one of limited expansion, coupled with a greater focus on urban renewal. To achieve this requires the need for ongoing reform if the vision is to be delivered. I seek leave to have the remainder of the second reading explanation inserted in Hansard without my reading it.

Leave granted.

Fundamentally, our current planning system is geared towards a greenfield development model as the easiest way to accommodate likely population growth. Redevelopment of infill locations through urban renewal is not readily accommodated within the system as it stands.

While rezoning of infill locations to provide for urban renewal opportunities will significantly change our urban form over time, redevelopment is a process that takes many years to unfold. Alone, rezoning will not be sufficient to engineer the kind of urban renewal required to create the vibrant, liveable city the 30-Year Plan envisages.

The government also readily acknowledges that it is critical for urban renewal to be informed by strong community engagement and a focus on high quality design, both of which are poorly provided for in the current legislative framework for rezoning.

The 30-Year Plan identifies the need for new statutory mechanisms to support the roll-out of urban renewal projects, such as the Bowden urban village being undertaken by the Urban Renewal Authority. The establishment of the Urban Renewal Authority is one example of how changing the way the planning system operates can position the State to realise the vision outlined in the 30-Year Plan. However, legislatively the authority is poorly equipped to undertake this task.

To be successful long-term urban renewal will require:

a mix of measures combining market-led change with more direct government intervention to achieve long-term infill growth;

a focus on community engagement and high quality design;

statutory powers and processes to support precinct-wide urban renewal projects;

placement of the provisions that establish Urban Renewal Authority at the level of an Act, rather than in regulations.

To ensure these aims can be achieved, this Bill proposes a new urban renewal planning process. A special precinct development process will be established, operating as an alternative to the normal rezoning process, to enable urban renewal to be kickstarted on a precinct-wide basis at selected locations. The process is particularly design to enable complex urban renewal projects, such as Port Adelaide, to be addressed in ways which are outside the ambit of the current rezoning framework.

Major urban renewal projects typically unfold over a horizon of 10-20 years. It is not possible or desirable to plan every aspect of a development of this nature upfront; rather, final design details should crystallise in stages as required. The Mawson Lakes development is a good example of a project which has unfolded applying these principles. This Bill, drawing on the lessons learnt through such projects, seeks to put a statutory framework around such practices.

The proposed precinct development process closely mirrors similar mechanisms for supporting urban renewal adopted in other jurisdictions such as the redevelopment schemes of the Perth Metropolitan Redevelopment Authority, the Victorian Urban Renewal Authority and the Queensland equivalent. In line with these interstate exemplars, the process will ensure strong community engagement and design input in the planning of new urban renewal precincts while also providing flexibility to support long investment horizons.

While the proposed precinct development process is intended to be principally available to assist the Urban Renewal Authority in its task, there is no reason to prevent councils from being able to apply to use it subject to appropriate oversight. The Bill provides for councils of joint venture-style statutory corporations including councils or other representatives to undertake urban renewal projects. This will be of great assistance to councils undertaking urban regeneration programs such as Marion, Onkaparinga, Tea Tree Gully and Salisbury among others. In complex situations, with multiple land owners, such as the Port, it will ensure that all relevant interests can be included in the governance arrangements for an urban renewal project.

Councils and statutory corporations will be subject to the same oversight as the Urban Renewal Authority in undertaking any role under the Bill. That is, final approval of precinct master plans will be by the Governor on the recommendation of the Minister.

The process outlined in this Bill has been designed to be scalable, working for large sites such as Bowden or Tonsley, while also able to apply to smaller scale renewal opportunities that may arise from time to time and are most likely to be undertaken by councils or private sector developers. Indeed, the availability of a precinct development mechanism will provide a strong incentive to developers to optimise infill land assembly, helping to accelerate the pace of urban renewal over time.

Importantly, the Bill does not limit the precinct powers—including powers to coordinate infrastructure roll-out—to infill projects alone. Where appropriate the powers to coordinate infrastructure through the precinct planning process will also be available for urban growth projects that the Urban Renewal Authority or councils may undertake from time to time.

In addition to the functions of the Urban Renewal Authority being set out in the Bill, the Bill sets out in detail the precinct planning process that will be required for all areas declared as urban precincts. This process involves a declaration by the Minister that a specified area is an urban precinct. That declaration will specify the spatial extent of the precinct and the broad objectives, design criteria and development parameters to inform the precinct planning process.

Detailed planning and design of the precinct will be undertaken by the precinct proponent in accordance with the requirements of the Ministerial declaration and any advice from the Development Policy Advisory Committee and the Development Assessment Commission where appropriate. This stage of the process will include community engagement and design review.

The draft precinct plan that is to be prepared must include:

policies and principles for achieving the objectives specified by the Minister in establishing the precinct;

a master plan, setting out the spatial structure of the precinct and integration with surrounding areas;

design guidelines for buildings and the public realm including the mix of land uses and the scale of intended development;

an implementation framework, including details on existing and required infrastructure works.

Assessment of master plans will be undertaken against the original Ministerial declaration, with the final approval to be reserved for the Governor on the joint recommendation of the Urban Renewal Minister and the Planning Minister. The Planning Minister will have the power to adjust the underlying development plan to accommodate a precinct plan once approved.

Detailed implementation plans will then be able to be approved by the Urban Renewal Minister and must be broadly consistent with the master plan. The implementation plan will also contain detailed policies relating to land use and design which will override the underlying development plan. There may be one or more implementation plans for a precinct. This will enable developments to be staged appropriately and for the underlying development plan to continue to apply until a stage of the development becomes active.

Once approved, a precinct authority will be authorised to undertake development and associated infrastructure works in the precinct in accordance with the precinct master plan and each implementation plan. Importantly, the precinct authority will be able to certify development as complying with the precinct plan, providing a streamlined pathway for construction while also ensuring a crucial linkage back with the system of development assessment under the Development Act.

Where a proposed development falls outside of the expectations of the precinct plan and cannot therefore be certified, the Urban Renewal Minister will have the power to request the Planning Minister to refer the matter to the Development Assessment Commission for assessment.

Once a precinct development has been completed, the Urban Renewal Minister may revoke a precinct declaration and the Planning Minister will have the power to transition the precinct to business-as-usual zoning subject to normal development assessment processes.

Importantly, the Bill will enable a precinct authority to exercise such powers as the Governor may, by regulation, confer on the authority to deliver the precinct master plan. This may include infrastructure powers, powers relating to public land and powers over rates and charges. For example, a precinct authority may be granted a power to close or open a road on a similar basis to a road authority. The powers also extend to granting appropriate concessions, by regulation, to land-based taxation and to the invalidation of council by-laws that are inconsistent with a precinct plan.

The ability to grant these powers will provide optimal flexibility in the delivery of a precinct plan, while also ensuring adequate parliamentary oversight. Importantly, this will enable councils and the government to bring together the appropriate suite of necessary powers tailored for the particular needs of each urban renewal project.

While the Expert Panel on Planning Reform will continue its comprehensive review of the planning system, this Bill will provide a kick start to an important reform of our planning and development system. The Expert Panel has reviewed and supports this Bill.

The Local Government Association has been briefed on the Bill and the Government understands they have indicated that are broadly supportive of its aims and objectives, subject to consideration of the detail. The department has also briefed the board of the Urban Renewal Authority on the content of the Bill who have indicated they believe the changes proposed in the Bill will give the authority a clear mandate to undertake its functions effectively.

It is the Government's intention that this Bill lie on the table in this chamber to enable feedback from local government and other stakeholders. We will not seek to further debate until key stakeholders have had an opportunity to provide that feedback. The Government would like to make it clear that it is willing to consider appropriate amendments that will satisfy stakeholders and briefings will be made available to members who seek them at any stage about the Bill.

The Government believes this Bill will be a key tool in ensuring that urban renewal projects can be developed in a way that is comprehensive and consultative. The Government believes this Bill will enable the development of attractive, functional and interesting urban areas that help achieve the urban renewal objectives set out in the 30-Year Plan for Greater Adelaide.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of Housing and Urban Development (Administrative Arrangements) Act 1995

4—Amendment of long title

The long title is amended to reflect new Parts 2A and 2B.

5—Amendment of section 1—Short title

The short title of the Act is changed to reflect new Parts 2A and 2B.

6—Amendment of section 3—Interpretation

Definitions are inserted for the purposes of the measure.

7—Amendment of section 5—Functions

New Part 2A continues the URA in existence as a statutory corporation under the Act. Provisions relating to the Board of the URA, its functions, powers and other relevant matters are also inserted into the Act.

8—Insertion of Parts 2A and 2B

This clause inserts Parts 2A and 2B.

Part 2A—Urban Renewal Authority

7A—Urban Renewal Authority

7B—Board of management

7C—Functions of URA

7D—Specific power of URA

7E—Application of provisions of Public Corporations Act 1993 to URA

7F—Associated matters

New Part 2A continues the URA in existence as a statutory corporation under the Act. Provisions relating to the Board of the URA, its functions, powers and other relevant matters are also inserted into the Act

Part 2B—Urban Renewal

7G—Preliminary

Definitions are inserted for the purposes of Part 2B.

7H—Establishment of precincts

Proposed section 7H provides for the establishment of precincts (as defined by the Act) by the Minister for the purposes set out in subsection (1), such as renewal or redevelopment of distinct areas. The Minister is to specify objectives for a precinct and may appoint the URA, another statutory corporation or a council to be the precinct authority.

7I—Precinct plans

The precinct authority is responsible for precinct plans under proposed section 7I. There will be a precinct master plan (adopted by the Governor) and precinct implementation plans (adopted by the Minister) for a precinct. Relevant publication, consultation and other procedures are provided for. The precinct authority may establish (and must at the direction of the Minister) panels to assist in the planning process, such as a design review panel.

7J—Certain matters to apply for the purposes of the Development Act 1993

A relevant authority within the meaning of the Development Act 1993 must accept that a proposed development in a precinct is complying development under section 35 of the Development Act 1993 to the extent that the development is certified by the precinct authority as being complying development under proposed section 7I(4)(b), and a proposed division of land in a precinct satisfies the conditions specified in section 33(1)(c) or (d) of the Development Act 1993 to the extent that such satisfaction is certified by the precinct authority. Subsection (3) provides that any requirement imposed by a council or the Development Assessment Commission under section 50 of the Development Act 1993 must be consistent with any provision made by the precinct authority under proposed section 7I(4)(c).

7K—Precinct authority may be authorised to exercise specified powers

Proposed section 7K is modelled on certain equivalent provisions in section 16 of the Economic Development Act 1993. It allows the Governor to authorise a precinct authority by regulation to exercise certain statutory powers in relation to a matter that is directly relevant to the management, development or enhancement of a precinct established under Part 2B. Relevant procedures and Parliamentary oversight is provided for.

7L—Governor may grant concession or make variation in relation to taxes etc on land within precinct

The Governor may, by regulation, grant a concession or make a variation to taxes, rates or charges (imposed by or under an Act) which apply to land within a precinct.

7M—Council by-laws to be consistent with precinct plan

If a by-law made by a council under the Local Government Act 1999 or the Local Government Act 1934 relating to a precinct is inconsistent with a precinct plan, the precinct plan prevails to the extent of the inconsistency.

9—Amendment of section 23—Transfer of property etc

The proposed amendment allows the Minister, with the concurrence of the Treasurer, on the revocation of a precinct plan under Part 2B, to transfer an asset, right or liability of a statutory corporation or an agent or instrumentality of the Crown to a person or body that is not an agent or instrumentality of the Crown (for example, a council), with the agreement of the person or body

Schedule 1—Related amendments and transitional provision

Part 1—Amendment of Development Act 1993

1—Amendment of section 29—Certain amendments may be made without formal procedures

The proposed amendment to section 29 would allow the Minister to amend a Development Plan in order to give effect to the adoption of, or an amendment to, a precinct plan under the Urban Renewal Act 1995, or in order to make such provision as the Minister thinks fit relating to planning or development within a precinct on the revocation of a precinct plan.

2—Amendment of section 34—Determination of relevant authority

This amendment would allow the Development Assessment Commission to act as the relevant authority in relation to a proposed development in a precinct which, in the opinion of the Minister responsible for the Urban Renewal Act 1995 may have a significant impact on an aspect of a precinct.

Part 2—Transitional provision

3—Transitional provision

This clause inserts a transitional provision for the purposes of the measure.

Debate adjourned on motion of Mr Pengilly.

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