Ku-ring-gai Council will decide whether it will close the public roads adjacent to St Ives Shopping Village at its Ordinary Meeting of Council, 26 November 2024 GB. 12 Proposed redevelopment of St Ives Shopping Village involving adjoining Council land and road reserve.

Ku-ring-gai Council controls owns the roads and public carparks round the St Ives Shopping Village site including Denley Lane, Cowan Lane, and Durham Avenue.

The owner of the St Ives Shopping Village, E K Nominees Pty Ltd, has been proposing to redevelop and expand the shopping centre site.

FOKE raised concerns at its meeting with the Mayor on 11 November 2024 about the process of committing to road closures with just an outline sketch of the shopping centre plans and a lack of clarity in the report as to the assured public benefits from the closure and divestment of the public land.

Will Councillors approve road closures based on a mere sketch and vague promises without any certainty that the closures will deliver any assured public benefits?

It is anticipated that there will be a request from the St Ives Shopping Village to also acquire the 13,000 sq m of publicly owned carparks in the next stages.

In reality,  voting for the closure of roads clearly demonstrates Council’s intent, setting the wheels in motion which will be very difficult to wind back.

 Moreover, Council must be accountable and transparent in its dealings with the closure and sale of public land and ensure public benefits are delivered for the community and which outweigh the loss of public land that can never be replaced.

Please write to Councillors councillors@krg.nsw.gov.au putting your views on questions such as:

• What will be the determined public benefits in closing and divesting the roads to the St Ives Shopping Village and which outweigh the closure and disposal of public land?
  
  
• Why is the Council not demanding or requiring a masterplan or more detailed plans from the St Ives Shopping Village before closing or divesting public land to a commercial enterprise?
  
  
• Why is the St Ives Shopping Village dictating the terms and timing of the road closures?
  
  
• Will Council’s divestment of 4,000 sq m of publicly owned carparks to the St Ives Shopping Village be next?

Proposed redevelopment of St Ives Shopping Village involving adjoining Council land and road reserve

Ordinary Meeting of Council – 26 November 2024	GB.12 / 1
Item GB.12	S14469

Proposed redevelopment of St Ives Shopping Village involving adjoining Council land and road reserve

EXECUTIVE SUMMARY

Purpose of report:	To inform Council that E K Nominees Pty Ltd, the owner the St Ives Shopping Village has advised of its intention to redevelop and expand the shopping centre. The proposal is, in part, contingent on the acquisition of Council-owned local road at Denley Lane, Cowan Lane, and Durham Avenue St Ives, land at 176 Mona Vale Road St Ives, and a laneway to Denley Avenue St Ives.
Background:	The existing St Ives Shopping Village currently provides in the vicinity of 23,380m2 of mixed retail and commercial uses. The proposed development seeks to expand the shopping by approximately 4,520m2 centre to a total retail area of 27,900m2. Subject to Council agreeing to divest the land to E K Nominees, the design to be submitted through a development application is intended to comply with the KLEP and DCP and it is understood that no variation to height and FSR controls are to be sought.A road closure application has been submitted to Council for consideration.
Comments:	Closure of Denley Lane, Cowan Lane, and Durham Avenue requires Council to go through a formal road closure process which includes public notification. Upon closure, issuance of title can be established and subject to further resolution of Council the land may be divested, along with the other parcels of interest to E K Nominees which are currently classified Operational land.
Recommendation: (Refer to the full Recommendation at the end of this report)	That Council endorse the formal road closure application by E K Nominees proceeding in accordance with Part 4 Division 3 of the Roads Act 1993 and as set out in this report.

Purpose of Report

To inform Council that E K Nominees Pty Ltd, the owner the St Ives Shopping Village has advised of its intention to redevelop and expand the shopping centre. The proposal is, in part, contingent on the acquisition of Council-owned local road at Denley Lane, Cowan Lane, and Durham Avenue St Ives, land at 176 Mona Vale Road St Ives, and a laneway to Denley Avenue St Ives.

Background

E K Nominees has written to Council to advise of its intention to expand the St Ives Shopping Village (SISV), to better serve the St Ives and the broader Ku-ring-gai community by improving amenity and lifestyle options. The expansion proposes a greater range of retail and commercial services, a ‘main street’-style shopping experience, improved interface with the Village Green, an integrated town square civic space, new and relocated parking facilities, new footpaths and pedestrian laneways, new road connections and traffic management improvements. The parcels of Council-owned land that are of interest to E K Nominees are set out in Attachment A1.

The proposed expansion is consistent with the Ku-ring-gai Development Control Plan (DCP) which facilitates the expansion of the SISV to provide a greater range of retail and commercial services, and with Council’s other strategic planning documents. The SISV site, along with the adjoining council land laneways are all zoned E1 Local centre under the KLEP 2015. All sites have an FSR of 1.6:1 and a maximum height of 14.5m. Shop top housing is permissible under the E1 local centre zone, however, EK Nominees have indicated that their focus is on the expansion of retail on the site and not the potential provision of housing.

The Department of Planning, Housing and Industry (DPHI) have identified St Ives as a ‘town centre precinct’ under their Low and Mid-rise Housing Policy. However, the DPHI Policy Refinement Paper provided to Council in April 2024 indicates that the increases in height and FSR in the proposed Low and mid-rise housing policy will not apply in the E1 Local Centre zone. This would mean that the SISV may not be able to take advantage of the proposed uplift to provide housing on the site depending on the final SEPP provisions.

E K Nominees’ intended expansion proposal relies on incorporating certain land presently owned by Council into the redevelopment as set out below in Figure 1 (shaded in pink):

·    176 Mona Vale Road (Lot 103 DP627012 and Lot 105 DP629388) and

·    Laneway at Pt Lot 2 DP418510.

The land of interest to E K Nominees at 176 Mona Vale Road and the laneway are classified Operational and are able to be divested with a resolution of Council. In addition, EK Nominees propose incorporating a number of other parcels of Council land (road reserve) as set out in Figure 2:

·    Part of Denley Lane (shaded blue and hatched);

·    Durham Avenue (shaded pink and hatched); and

·    Cowan Lane (shaded green and hatched).

All the above are public roads which would require closure and issuance of land title.

Figure 1 – Council land identified by E K Nominees

Figure 2 – Road Closures proposed by E K Nominees

Based on the current plans there would only be one property impacted by the proposed road closure and E K Nominees has indicated it would create a Right of Way in favour of the property owner to ensure ongoing access.

Comments

Denley Lane, Cowan Lane, and Durham Avenue are legally categorised as road reserve under Council ownership and are subject to the requirements of the Roads Act 1993.

As a consequence of legislative changes to the Roads Act 1993 on 1July 2018, councils have the power to close council public roads under Part 4 Division 3 of the Act.  A council can only close roads that are formally under council control and can only sell land that is vested in council upon closure. Previously, in order to close a council public road, a council was required to make an initial application to the Crown Lands Office within the now DPHI seeking approval to commence the process which had to be undertaken concurrently with the Department.

The new arrangements streamline former duplicated procedures and enables Council to manage the road closure process and to complete a series of actions which includes:

•  Carrying out a full status check of the road to confirm its dedication as a Council public road and its public use and construction to verify its status as vesting in Council on closing.
• Advertise the intention to close the council public road in a local paper circulating in the same area as the intended closure.
• Sending notification of the proposal to all affected parties and notifiable authorities (including DPHI) prescribed in legislation noting a 28-day submission period to provide comment.
• Council considering all submissions received and taking action to resolve any objections. Where a notifiable formally objects, the road is not able to be closed until the objection is withdrawn by that authority or is set aside by the Land and Environment Court (LEC) upon an application for such an Order being made by Council.
• After considering all the submissions received Council may, by notice published in the Government Gazette, formally close the road.
•  On publication of the notice closing the public road, the road will cease to have public road status but the land will remain vested in Council if the public road was previously vested in Council provided the road was constructed and maintained by Council.
• All owners of land adjoining the road, notifiable authorities and any other person prescribes in the Roads Regulations 2018 can appeal to the LEC against the closure of a public road by a Council.

Once the above pre-lodgement actions are completed, Council can lodge a road closing application and a status report of the proposed road closing along with supporting documentation to DPH.

It is important to note that the commencement of the road closure application does not in any way bind Council to the sale of the road reserve. It merely initiates a statutory process, and it is only once Council holds title over the land that any negotiations would be undertaken for any potential divestment (a road is not land under land titling legislation).

The other Council land of interest to E K Nominees at 176 Mona Vale Road and the laneway are classified Operational and have the potential to be divested. The final decision to sell public land requires a formal resolution of Council to proceed which can be considered in conjunction with a future report to Council on the outcome of the road closure application and subject to commercial terms being agreed.

Integrated planning and reporting

THEME 6 – Leadership.

Community Strategic Plan Long Term Objective	Delivery Program Term Achievement	Operational Plan Task
L2.1: Ku-ring-gai is well led, managed and supported by ethical, organisations which deliver projects and services to the community by listening, advocating and responding to their needs.	L2.1.2: Manage Council’s property assets to achieve Ku-ring-gai’s long term objectives and priority projects contained within Ku-ring-gai’s Community Strategic Plan and Delivery Program	L2.1.2.1: Progress Council approved property acquisitions and divestmentsL2.1.2.2: Optimise financial returns from Council’s existing property portfolio given the prevailing market conditions

Governance Matters

Council has the power to close a public road vested in its control under Part 4 Division 3 of the Roads Act 1993.

Following a resolution of Council to commence a road closure, Council staff will carry out all pre-lodgement requirements prescribed by the Roads Act 1993.

Additionally, the road closure application process requires that Council nominate whether the road reserve, once title is created, is to be classified as Operational or Community as defined under the Local Government Act, 1993. In order for Council to consider the potential divestment of the road parcels it is recommended that Council resolve for the subject road to be classified as Operational land upon issuance of title.  On publication of the notice closing the public road, a public road that was previously vested in a council (other than a road where no construction or improvements by a council have ever taken place) remains vested in that council.

The other land of interest to E K Nominees at 176 Mona Vale Road and the laneway are already classified Operational and have the potential to be divested.

The final decision to divest public land requires a formal resolution of Council which will be the subject of a separate report.

Risk Management

The potential risks are objections to the closure of the roads and failure to satisfactorily resolve the objections. Based on the current plans there is only one property impacted by the proposed road closure and E K Nominees would be required to create a Right of Way in favour of the property owner to ensure ongoing access.

If Council ultimately resolves to proceed with the road closure and proposed divestment of Council land, all property conveyances will be handled by Council’s solicitors to ensure Council’s interests are protected.

Financial Considerations

Any divestment of Council land is to be at market value in accordance with Council’s adopted Acquisition and Divestment of Land Policy.  

Under the Roads Act, 1993, any income obtained by Council from the divestment of closed roads must be used for related public road purposes. Proceeds of the sale of land not created by way of the closure of former roads is not so restricted.

There are intersecting benefits to EK Nominees, the community and Council from the redevelopment and expansion of the shopping centre at St Ives. Council is, however, the owner of significant parcels of land and prospective closed roads are of significant value when considered on a highest and best use basis. It is incumbent upon Council to extract maximum public benefit and value from its land holdings in this precinct.

Social Considerations

E K Nominees’ proposed expansion of the St Ives Shopping Village has the potential to better serve the St Ives and the broader Ku-ring-gai community by improving amenity and lifestyle options. The expansion will provide a greater range of retail and commercial services, a ‘main street’-style shopping experience, improved interface with the Village Green, an integrated town square civic space, new and relocated parking facilities, new footpaths and pedestrian laneways, new road connections and traffic management improvements.

The divestment of any road reserve will assist in the delivery of Council’s Community Strategic Plan 2030 in providing new funding towards community road projects. Proceeds from the sale of land not created through the road closure process are not so restricted.

Environmental Considerations

The road closure proposal is a statutory process and does alter the current use of the site.

Any environmental issues would be assessed through the development application assessment process in the event the land is divested to E K Nominees for future redevelopment of the shopping centre.

Community Consultation

The Roads Act, 1993 requires public notification to all affected/adjoining property owners, statutory prescribed authorities as well a number of other utility providers. All submissions received are required to be objectively assessed by Council.

Any development application for the shopping centre would also be the subject of public notice and formal notification.

Internal Consultation

Staff from within the Strategy and Environment Department and Operations have been consulted in the preparation of this report. This matter has been reported to Council’s GMD and been the subject of a number of briefings between Council staff and E K Nominees and their representatives.

Summary

E K Nominees has approached Council concerning its plans to expand the St Ives Shopping Village, to better serve the St Ives and the broader Ku-ring-gai community. The proposed expansion is consistent with the Ku-ring-gai Development Control Plan which encourages the expansion of the shopping centre to provide a greater range of retail and commercial services.

E K Nominees’ intended expansion proposal relies on incorporating certain land and road reserve presently owned by Council into the redevelopment. To this end, a road closure application has been lodged seeking to close Denley Lane, Cowan Lane and Durham Avenue in St Ives along with a proposal to acquire two other parcels of Council’s land for integration into the future redevelopment of the St Ives Shopping Village. Based on the current plans there would only be one property impacted by the proposed road closure and E K Nominees has advised it will create a Right of Way in favour of the property owner to ensure ongoing access.

Council has the power to close a public road vested in its control under Part 4 Division 3 of the Roads Act 1993 but only after adherence to a lengthy and detailed statutory process which includes public notification and consideration of public submissions on the proposal. The commencement of the road closure application does not in any way bind Council to the divestment of the subject parcels of road. Once the formal road application process has been completed and title established over the land, negotiations for any potential divestment can be considered.

The other land of interest to E K Nominees at 176 Mona Vale Road and the laneway are already classified Operational and have the potential to be divested subject to a resolution of Council. This matter will be the subject of a separate Council report on conclusion of the road closure process.

Recommendation:

A.   That Council note the contents of this report and resolves that Council staff commence the statutory road closure process in accordance with the relevant provisions of the Roads Act 1993.

B.   That subject to all objections to the road closure application being satisfied, Council endorses the closure of the roads and upon issuance of Certificate of Title the land be classified as Operational Land.

C.   That Council note that a final decision to divest public land requires a formal and separate resolution of Council which will be the subject of a subsequent report.

Vince Rago Property Program Coordinator	Craige Wyse Team Leader Urban Planning
Antony Fabbro Manager Urban & Heritage Planning	Andrew Watson Director Strategy & Environment

Attachments:

A1⇩

St Ives Shopping Centre road closure brochure

2024/219495

St Ives Shopping Centre Road closure brochure (yellow highlights by FOKE)