Page 3414 - Week 11 - Wednesday, 18 September 2013

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MR BARR (Molonglo—Deputy Chief Minister, Treasurer, Minister for Economic Development, Minister for Sport and Recreation, Minister for Tourism and Events and Minister for Community Services) (6.00): I will speak briefly on a particular aspect of the motion in relation to Denman Prospect. Denman Prospect is the first of two suburbs to be developed in stage 2 of the Molonglo valley. In October last year, after considering the risks and benefits of several different options, the Land Development Agency sought to release Denman Prospect as an englobo site in a single offering. This single englobo parcel was around 100 hectares and would accommodate around 1,700 dwellings of single residential blocks and multi-unit high density dwellings to be delivered over a 12-year period.

This option was chosen to ensure an integrated development across the suburb with a consistent treatment of streetscape, landscape and open space. This would reduce the risk of different englobo developers waiting on others for the completion of works. The englobo site was released to potential purchasers in March of 2013 with a restricted auction planned for June this year.

After conducting appropriate market research, the sales agent provided an expectation that four to six national developers and two to three local developers would register to bid at auction. Three organisations registered, however, only one provided sufficient information to be admitted to the auction. Therefore, after appropriate legal and probity advice, the LDA changed the process of the auction to a tender, as an auction with only one bidder obviously was not going to provide the best outcome. The tender evaluation process was completed and negotiation began in June with the only tenderer. Negotiations concluded with the final offer from the tenderer not considered to meet the overall value-for-money test for the project.

In February the LDA identified options for the site if the sale did not yield a buyer. One of the options was that the LDA would develop the suburb itself rather than sell it as an englobo parcel. The LDA has now begun the planning for the development of the southern portion of the Denman Prospect site as an LDA estate. This portion is around 500 dwellings, including single residential blocks and multi-unit dwellings. The time frame for this first phase is over the next four years. The LDA development of the suburb has no impact on the government’s indicative land release program.

The decision to develop Denman Prospect as an LDA estate will produce integrated development. The development of the site by the LDA enables them to engage with local contractors to deliver the estate development plan and to provide the civil works. The LDA will also draw on the expertise of local consultants and local firms, meaning the level of activity in this part of the economy will not be affected at all by an alternate approach to development.

The LDA, by retaining control of the sales process, will now ensure a range of single lots and super lots are sold to builders and/or individuals. Super lots are a new type of product proposed by the LDA which will enable a developer to purchase larger parcels of land rather than individual blocks. The developer will then be able to consider market demand and subdivide the parcel to meet demand. These super lots

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