Infrastructure charges- the councils way of saying Get stuffed?

[Jtkumnick]

Hello all,

Got a question about local infrastructure charges.
My family have a 5 acre block under moreton bay council we have held for 30 years. Looking at subdividing into 9 blocks and looking at an infrastructure charges (headworks) of around $270,000. The council say that it is due "prior to the endorsement of the survey plan"

From my understanding this means a HUGE sunk cost before doing any work, and indeed BEFORE actual approval? How does anyone get a development done with such a high, upfront cost?

Surely there are ways, not around paying it, but at least offsetting it until the blocks can be sold etc?

Would love some advice from an self developers out there!

Needless to say the council didn't respond to my question about "how can anyone afford that"...........

 

[Jtkumnick]

Corrected title:

Corrected title: infrastructure charges, the councils way of saying get stuffed to the small guy?????

 

[brazen]

Hello all,

Got a question about local infrastructure charges.
My family have a 5 acre block under moreton bay council we have held for 30 years. Looking at subdividing into 9 blocks and looking at an infrastructure charges (headworks) of around $270,000. The council say that it is due "prior to the endorsement of the survey plan"

From my understanding this means a HUGE sunk cost before doing any work, and indeed BEFORE actual approval? How does anyone get a development done with such a high, upfront cost?

Surely there are ways, not around paying it, but at least offsetting it until the blocks can be sold etc?

Would love some advice from an self developers out there!

Needless to say the council didn't respond to my question about "how can anyone afford that"...........

Yea, the charge is to "pay for the projected increase on infrastructure". Things like road works, sewer, drainage..even the Local Library. That's VERY high though, wooa!

 

[LJW]

That does sound a little high. There is an online IC calulator that you can use for MBRC.

http://www.moretonbay.qld.gov.au/ice/

In Brisbane, it is $26k per additional lot so you would be looking at $208k for the 8 additional lots.

You can obtain development approval relatively cheaply - i.e. around $10k (surveyor/planning consultant/Council fee). However, you will not be able to register the plans (i.e. actually create the additional lots) until all conditions of the development approval are met. i.e. lots are connected to all services and Council contributions are paid.

 

[LJW]

You may be able to arrange financing based on having Development Approval only. Perhaps, this could be answered in the financing part of the forum.

 

[Rockstar]

From my understanding this means a HUGE sunk cost before doing any work, and indeed BEFORE actual approval? How does anyone get a development done with such a high, upfront cost?

I can only speak from my experience in my small strata developments we don't have to pay for contributions until after DA approval. However we do have to pay before any works are carried out.

Are you saying they are demanding money before any approvals are given?

Have a look at Brendons thread. There may be some valuable info for you if you haven't seen it.

 

[Jtkumnick]

thanks LJW

That does sound a little high. There is an online IC calulator that you can use for MBRC.

http://www.moretonbay.qld.gov.au/ice/

In Brisbane, it is $26k per additional lot so you would be looking at $208k for the 8 additional lots.

You can obtain development approval relatively cheaply - i.e. around $10k (surveyor/planning consultant/Council fee). However, you will not be able to register the plans (i.e. actually create the additional lots) until all conditions of the development approval are met. i.e. lots are connected to all services and Council contributions are paid.

Thanks LJW, yes i did the online calculator which came in at about $424,000, but the council have told me they have capped it at $28,000 per lot recently.
Is the survey plan the end product that allows you to get titles for the new blocks or is it the plan you take to council to get approved initially?
If it is the first one, then that should make the development feasible, i can risk the $10k on planners and council applications, start putting in the services etc, and then finally pay the council their money just prior to getting titles and final approval.
I am borrowing against the block to fund it so to pay $200-$300k before the bulk of the work is done would sink the project before it had begun......

 

[Jtkumnick]

thanks rockstar

I can only speak from my experience in my small strata developments we don't have to pay for contributions until after DA approval. However we do have to pay before any works are carried out.

Are you saying they are demanding money before any approvals are given?

Have a look at Brendons thread. There may be some valuable info for you if you haven't seen it.

Thanks rockstar, i have had a look at brendons thread as it sounds like he was in a very similar situation. it was brilliant, and if all things come together on my development, i am thinking of writing a similar blog to help other first timers out there....

 

[Jtkumnick]

That does sound a little high. There is an online IC calulator that you can use for MBRC.

http://www.moretonbay.qld.gov.au/ice/

In Brisbane, it is $26k per additional lot so you would be looking at $208k for the 8 additional lots.

You can obtain development approval relatively cheaply - i.e. around $10k (surveyor/planning consultant/Council fee). However, you will not be able to register the plans (i.e. actually create the additional lots) until all conditions of the development approval are met. i.e. lots are connected to all services and Council contributions are paid.

Is the survey plan the end product that allows you to get titles for the new blocks or is it the plan you take to council to get approved initially? forgive my ignorance!