South Burnett Mayor Wayne Kratzmann hopes Memerambi Estate owners will agree to a ‘benefitted area’ arrangement so the failed sub-division can finally be fixed

June 14, 2014

A solution to the controversial Memerambi housing estate may be close.

The South Burnett Regional Council will write to affected property owners offering to make the estate a “benefitted area”, Mayor Wayne Kratzmann said on Friday.

If the owners agree, the Council would borrow funds from Queensland Treasury to build the sealed roads and drainage works, and connect underground power needed to make the estate habitable.

The Memerambi owners would repay the loan costs, interest and redemption fees over a set period on top of their normal rates.

“We have to wait and see what the owners say,” Mayor Kratzmann said.

But he hoped they would agree to the proposal so work on “normalising” the estate could start quickly.

“Council would really like to see Memerambi Estate fixed,” the Mayor said.

“So we hope to hear back from the owners soon.”

* * *

The Memerambi Estate has been an eyesore ever since August 2013 when the estate’s developer Summit View Meritor Pty Ltd was placed in liquidation.

Council originally approved development of the estate in January 2011 on an historical sub-division laid out in 1907.

The approval was given subject to conditions that apply to normal sub-divisions, including the completion of infrastructure works prior to the commencement of building work.

However in April 2011, this requirement was removed after Summit View Meritor, via a consultant, requested a “negotiated decision”.

Summit View Meritor then built houses on the estate in advance of fundamental infrastructure such as roads, water and sewerage.

Many of the houses were only completed to basic lock-up stage, and lacked proper infrastructure connections to make them habitable.

After Summit View Meritor was placed into receivership, the Council then found itself embroiled in a legal action launched by 18 of the property owners against the developers in which it was joined as a third respondent.

This held up any moves towards fixing the problem until the case was resolved in Council’s favour in February this year.

At the time, the Mayor said he genuinely sympathised with the property owners’ predicament, but was determined South Burnett ratepayers would not be out of pocket because of the problem.

Apart from declaring the estate a benefitted area, the only other options open to property owners were to pay contractors to build the infrastructure themselves; or watch the estate continue to deteriorate.

In May this year, the Council adopted a Temporary Local Planning Instrument (TLPI) which will require future owners of historic sub-divisions to build all infrastructure before any dwelling can be erected.

The TLPI will remain in force for a year, by which time the Council hope to introduce a new, Shire-wide Planning Scheme containing similar provisions to prevent any similar situation in future.

[UPDATED with correction. An earlier version of this report stated the letters had been sent]

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2 Responses to "Memerambi Solution Inches Closer"

  1. To The Mayor of South Burnett Council,

    My Husband Paul & I are the owners of one of the properties at the above mentioned estate and as at today’s date we have not received any recent correspondence from Council relating to the roads & drainage etc. at the estate. How can we respond to any proposal which Council puts forward if we don’t receive the relevant correspondence. We don’t know of any owners who have received such information either. We actually have Debbie Schultz representing us in relation to our property but I don’t believe she has received the correspondence either.

    Regards
    Paul & Carolyn Allen

  2. The scenario as presented may appear palatable to public concerns but liability remains with the decision makers to ensure the appropriate guidelines are in place and adhered to before construction commenced. The rephrasing of this development as a benefited area to negate council’s decision to allow construction to proceed without adequate assurances that appropriate services would be installed by the developer were neglected. This sets a dangerous precedent allowing council to deem any expenditure benefited and applying costs accordingly to those directly affected to finance and pay for on a user pays basis. The adage “buyer beware” may apply to your situation.

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