Heritage Plaza owner Genamson wins council flood basin wrangle
A well-known shopping plaza developer which sued a local council for compensation after it tried to take part of the centre’s land for a flood retention basin, has scored a partial win.
A well-known northside shopping plaza developer, which sued a local council for compensation after it tried to take part of the centre’s land for a flood retention basin, has scored a partial win — but will not receive any of its legal costs.
Developer Genamson Holdings sued Moreton Bay Regional Council in March last year after the council issued it with two notices to resume land at its popular Heritage Plaza at Caboolture before later withdrawing from the plan.
The commercial hub is affected by flooding from catchment flows and stormwater, and the council had proposed building a regional detention basin on part of the site to temporarily hold excess water during heavy rain and reduce flood risk in the surrounding area.
Genamson claimed it suffered financial losses, including increased development costs, lost tenancy income, and holding costs, and sought compensation under the Acquisition of Land Act.
In the original Land Court decision in September 2024, Genamson was limited to claiming only legal and professional fees, with broader claims for “disturbance payments” rejected.
This week, the Land Appeal Court of Queensland overturned that ruling, finding that Genamson might be entitled to more than just legal costs, though it will not receive the full disturbance payments it had sought.
Despite technically winning the appeal, the court ruled that each side must bear its own legal costs, reflecting the mixed success of both parties.
The ruling comes a day after a shocking new climate report revealed Australian cities could become nearly uninhabitable by the end of the century, with Brisbane projected to face 314 flood days annually.
The Australian Climate Service modelled future risks based on three global warming scenarios — +1.5C, +2C, and +3C — against the backdrop of the world already warming 1.2C, underscoring the urgent need for proactive investment in flood resilience and adaptation strategies.
The legal battle is the latest chapter in a long-running stoush between the council and Genamson.
The council first rejected a 2016 bid to expand Heritage Plaza, later voting in 2018 to resume more than half of the site for a detention basin.
At the time, director Geoff Lowe warned the plan would damage tenants, put nearly $15 million of economic activity at risk, and flagged further legal action, with Genamson’s legal costs already exceeding $750,000.
However, Mr Lowe has since written to the council notifying it that he intended to build a retention basin under his centre, which he said would be similar to a basin built under a mosque in Istanbul.
Moreton Bay City Council and Genamson were contacted for comment about any ongoing tension between public flood mitigation projects and private property rights and challenges developers faced when seeking compensation for land affected by public works.
