Meadowbrook hospital developers win $704k fee battle with Logan council

Two developers have defeated Logan City Council in court, avoiding a $704,000 infrastructure fee after a judge ruled the private hospital project was already under state approvals.

Works have started at the Nestor Dr site at Meadowbrook. Pictures: MeadowbrookHealth.com.au

Two developers have scored a major legal victory after a court dismissed a $704,000 infrastructure fee for building a private hospital south of Brisbane, claiming the local council charge was invalid.

The Planning and Environment Court ruled that OPD Developers Pty Ltd and Meadowbrook Health Pty Ltd were not liable to pay the infrastructure charges levied by Logan City Council for a proposed hospital development in Meadowbrook.

The court found the fee unenforceable because the project had already been approved under a state-level designation known as a Ministerial Infrastructure Designation, which removed the need for further development approval.”

The dispute centred on a charge notice dated July 17, 2023, issued by Logan City Council in relation to a building works approval granted the previous month on June 20, 2023.

An artist’s impression of what the building on Nestor Dr will look like when completed. Picture: MeadowbrookHealth.com.au

However, that approval followed a far earlier decision the year before by the state government on July 1, 2022, when the state’s Planning Minister formally designated the land at 6-8 and 10-12 Nestor Dr, Meadowbrook for the development of hospitals and healthcare services.

The ministerial designation took immediate effect with the hospital designated an “accepted development”, a category that does not require a development approval under Queensland’s Planning Act 2016.

Despite the hospital being designated as accepted development under the MID, Logan City Council issued the $704,000 infrastructure charge notice a year later following the private certifier’s approval of the building works.”

The developers challenged the notice, arguing that the council lacked the legal basis to impose infrastructure fees given the existence of the ministerial designation.

Judge William Everson agreed with the developers in his ruling on April 30, 2025, finding that the charge was invalid because it did not comply with the requirements under the Planning Act.

The Nestor Dr site at Meadowbrook adjoins the Woolworths shopping centre and is across the road from the Logan Hospital. Picture: Project Urban

The court emphasised that infrastructure charges can only be levied where a development approval exists, a requirement Judge Everson found was not satisfied in this case.

Judge Everson also found that the building approval was necessary for construction but did not generate any additional demand on trunk infrastructure beyond what was already authorised under the ministerial designation.

As a result, the charge failed the legal test under section 120 of the Planning Act, which states that infrastructure fees must only be levied for new demand not already lawfully permitted.

In his judgment, Judge Everson noted: “There is no extra demand placed on trunk infrastructure that the building approval will generate over and above the MID. In both cases the hospital is what will generate the demand.”

The judge also pointed to the explanatory notes of the Planning Bill 2015, which became the current Act, reinforcing that existing lawful use rights, including those under an MID, must be credited when determining infrastructure demands.

Construction at the site. Picture: MeadowbrookHealth.com.au

The court formally ordered the notice be set aside and declared it “invalid and of no effect”.

A 2019 town planning report for the development before approval, Project Urban indicated the proposed health care service, classified as an essential service, was likely to attract an infrastructure charge of $146.70 per square metre for 5576 sqm of gross floor area, resulting in a total charge of $818,000.

This month’s ruling could have implications for local councils attempting to impose infrastructure fees on developments already covered by a ministerial designation.

Legal representatives for the developers welcomed the ruling, while Logan City Council has said it was considering its position on whether to appeal the decision in the Supreme Court of Queensland’s Court of Appeal.

The council would need to file a notice of appeal within 20 business days of receiving the decision, which would be May 28, 2025, unless they also seek an extension from the Court of Appeal.

Originally published as Meadowbrook hospital developers win $704k fee battle with Logan council