A DEVELOPER who paid a reported $26 million for a Wollert farm says smaller neighbouring properties are not all “goldmines”.
Nick Deed, a director of Greencor, said most of the hobby farms being hit with massive rate rises after their land was revalued as part of a future urban growth area were not ripe for development.
He said some Wollert properties were not ready for development because they were too small or the owners were asking unrealistic prices and land had yet to be rezoned to the plum residential 1 zone. He said it would cost developers tens of millions of dollars and several years to bring infrastructure to the entire area.
“It’s zoned (for) urban growth but they are asking prices as if it was zoned residential 1,” he said.
Wollert residents are protesting over rate rises of between 40 and 260 per cent, including one property for which rates rose 125 per cent – from $3551 to $8012.
Greencor bought a 57-hectare farm at Bodycoats Road with the potential to be subdivided into 900 lots, for $26 million with a catch — it is to be paid over eight years.
Mr Deed said many properties were too small, not on a main road or had adjoining neighbours who had no intention of selling.
He questioned council’s decision to impose massive rate hikes when the land had been earmarked as a future growth area but had not rezoned to residential 1.
Planning Minister Matthew Guy said the former Labor Government included Wollert in the urban growth boundary in 2010. He signalled the brakes had been put on development in Wollert.
“Any precinct structure plans approved in the northern growth corridor by the current government have occurred with an intention for those areas to have development commence soon. Wollert is not one of these areas,” he said.
“Council rates are a matter for local councils, not the state government. Councils should be mindful of their rate decisions upon local residents.
Council spokesman Gino Mitrione said the 2010 amendment to the Whittlesea planning scheme made Wollert an urban growth zone and council “legally bound” to value properties under the new zone.
