Shoreline land release delays concern builders as work yet to start on sewerage plant

A southside housing estate has been labelled a ‘temporary white elephant’ after delays in land releases due to no sewerage.

The developer of one of the largest housing estates in southeast Queensland has lashed out over claims of financial difficulties and land release delays, after builders’ concerns.

Lendlease and its affiliates Fox and Bell and Fiteni Homes, have all said there were no financial issues or delays at the 3500-lot Shoreline housing project at Redland Bay.

However, two builders of display homes at the estate who want to sell houses at Shoreline, have claimed the estate was looming as a “white elephant” because the developer had put a temporary hold on releasing more land for future stages.

They were speaking out after a development application billboard was erected on land next to the existing building site on Serpentine Creek Road at Redland Bay advertising the project’s next stage.

A development application billboard on land next to the existing building site on Serpentine Creek Road at Redland Bay advertising the project’s next stage.

The nine-stage Shoreline development, on 101 hectares of land once used for farming at Redland Bay, was given the go ahead by both the state government and Redland City Council before the estate had an approved sewerage plant.

Under the conditions for the estate’s approval, only 200 houses can be built before a sewerage treatment plant is operating.

The next stage, which includes lots on Shoreline’s 11B land parcel, is for 22 lots and a new road.

Redland City Council has sealed the plans with settlement and registration with the Titles Office expected this month.

Lendlease said title registration for Stage 5’s 38 lots was expected in September and land releases and settlements were due in September or October.

The company had advertised stage 5B would be released on June 5.

Builders have concerns about delays in land releases but the developer of one of the largest housing estates in southeast Queensland has denied claims of financial difficulties.

So far, Lendlease has no sewerage treatment plant and Right to Information documents have shown that costs to build the facility have more than doubled from an initial estimate of $30 million, of which the state government has promised a $15 million loan.

A Lendlease spokesman said the company was paying to build the sewerage plant and was exempt from state and council infrastructure fees under the rules for masterplanned estates.

The spokesman denied it was collecting sewer infrastructure fees.

Builders working onsite at Shoreline’s first stage this week included Plantation Homes, Coral, Metricon, Antech, Chelbrooke Homes, Ownit Homes and Fiteni, to name a few, with many only constructing display homes in phase 1.

The developer of one of the largest housing estates in southeast Queensland has denied claims of halting land releases and financial difficulties, after builders expressed concerns. Lendlease and its affiliates Fox and Bell and Fiteni Homes, have all said there were no financial issues or delays at the 3500-lot Shoreline housing project at Redland Bay.

Two, who both asked not to be named, said it was concerning that the developer had halted land releases for future stages and limited the amount of house blocks until a sewerage treatment plant was built.

“Now we know why they are not releasing the next stages because of the sewerage issue and they haven’t got the infrastructure in place,” a builder with a display home at Shoreline said.

“This will definitely affect us, because we can sell a house and take a deposit but people only have a deposit on the land until the land is released so it could be on the ‘Never Never’.

“Because they are not releasing the next stages for sale, it will be difficult for us to sell houses to go in that estate … all we can do is take a deposit … We can’t sell our houses because there is no land available.

“Lendlease will want to sell land and they will take a deposit if you want to buy a block of land — but that land will not be released in the amount of time that will allow for the sewerage treatment plant to be built.

“There will have to be a massive infrastructure spend — it could be up to $100 million — and that’s not going to happen overnight — that could be years away.

“All the infrastructure should have been approved and built while the estate was being subdivided. This could be a white elephant for a while.”

The builder said many prospective home buyers looking at the estate were unaware of the caveats prohibiting more than 200 houses before a sewerage treatment plant was built.

“Our sales officer did not realise that the two big black tanks across the road from Shoreline were sewage storage tanks that will have to be emptied out all the time,” he said.

A sales officer for a builder said he did not realise these two big black tanks across the road from Shoreline were sewage storage tanks that will have to be emptied out all the time

A Lendlease statement this week said there was no issue with bank loans for the project and the treatment plant was expected to be operating by the end of 2023.

It said Shoreline had welcomed its first resident and houses built on the estate were connected to a temporary tank facility which was operational.

“We’re looking forward to welcoming more residents over the coming weeks and months as their homes are completed,” the statement said.

“There is no issue with a line of credit and Lendlease is funding the sewerage plant.

“Residents who are ready to move in can.

“Lendlease continues to work with Redland City Council on the construction of the sewerage treatment plant and … discussions between Lendlease and Council are ongoing.

“Construction of homes on site has not halted and is ongoing.”

Redland City Council said the developer was building and paying for the sewerage treatment plant and the project was progressing, with completed works, including the connection to the temporary pumping station.

A map showing Shoreline estate stages 8, 7, 6, 5, 9, 10, 12 and 11B and 11A.

Shoreline landowner Fox and Bell director Greg Bell said his company had done a deal with the state government to use infrastructure payments to build local roads and facilities including eleven intersections and the sewerage plant for Shoreline.

“We’re taking that infrastructure money and spending it on the (sewer) system rather than giving it to someone else to spend somewhere else,” he said.

“Each time a block is sold, instead of paying fees for the sewer, those fees go back to Lendlease.”

Mr Bell said many of the houses under construction at Shoreline were display homes and were not inhabited and were not part of the 200 dwelling sewerage figure.

He said he was not concerned that some of the overflow water from the treatment plant would drain across pristine wetlands where it would be “cleaned” before flowing into the Logan River.

“The water coming out of the system will be drinkable,” he said.

“What everyone has forgotten about here is that nature had this all worked out long before we got here.”

He said after the plant was built, the council would take ownership with maintenance to be paid for from sewerage fees in rates notices.