Lakeside Gardens developer to sell land as he became old waiting for council approval

A CENTRAL Coast property developer whose building proposal took an eye watering 17 years to get through council says he is now too old at 77 to start the project. It’s the saga from hell.

Property developer Morris Wheeler had to wait so long for his plan to get through council the he is now too old to start the project. Picture: AAP/ Mark Scott

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A CENTRAL Coast property developer whose building proposal took 17 years to get through council says he is now too old to finish the project.

Rustrum Pty Ltd director, Morris Wheeler was 60 when he began the process to build a major development on land beside Budgewoi Lake at Toukley.

When he finally got the go ahead to build $40 million Lakeside Gardens after a legal battle in the NSW Land and Environment Court last year, he was 77 and “decided to be a realist”.

“Now is not the time to start a major three year project,” Mr Wheeler said.

The 5300 sqm site on Main Road at Toukley next to the Beachcomber Hotel is now on the market and its future uncertain.

Computer generated image of the proposed Lakeside Gardens development.

Mr Wheeler decided to speak out after reading a recent Central Coast Express Advocate article about the failure of the former Wyong Council’s Key Sites scheme which was supposed to promote quality development by offering incentives to developers.

Despite the incentives offered over five years, not one building went ahead, and some that were planned were put on the market shortly after the granting of development approval.

These are the views that would have been enjoyed by residents and visitors if the Lakeside Gardens development if it had gone ahead.

The scheme is now up for review by the amalgamated Central Coast Council and could be extended or abandoned.

The Rustrum site was one of those key sites, but Mr Wheeler said the former Wyong Council “must bear a major responsibility for the project not proceeding immediately”.

“The Key Site initiative promised, among other things, that the DA would be fast tracked — in our case nothing could be further from the truth,” Mr Wheeler said.

Computer generated image of the proposed Lakeside Gardens showing surrounding parkland.

THE SAGA BEGINS

THE saga of the site began in 2002 when Mr Wheeler said he and his partners were encouraged to amalgamate the site for a unit development.

He said that over the next six years, and despite numerous meetings with council, every proposal put forward for the site was rejected by council staff.

Rustrum then went to the NSW Government in 2010 and got approval for 49 units in a “seniors living” complex.

Mr Wheeler on the site at Main Road, Toukley five years ago.

“It is worth noting that council lodged 52 objections to that DA, including one that said “think of another reason to object and fill in here,” he said.

Mr Wheeler said council approached him shortly afterwards saying the land had been included in their new Key Sites scheme and said they would be given a greater height limit on the building if Rustrum lodged a new DA.

The Lakeside Gardens development would have included shops and cafes on the ground level.

The litany of confusion continued when council then rezoned the land for Tourism (SP3) and despite concerns from Rustrum that this would block their development, the new zoning became official.

At Wyong Council’s suggestion, Rustrum ran in architectural design competition in 2013 for the site which cost $25,000 with council choosing the winning design.

REZONING BLUNDER

THE ink was hardly dry on the design competition when council realised in 2014 that it had, in fact, incorrectly rezoned the land which did not permit the Rustrum development, and the whole rezoning process would have to start again.

“This involved Rustrum not only in the costs of funding the rezoning but in a partial redesign of the development,” Mr Wheeler said.

“The estimated cost of this fiasco was around $1.4 million,” he said.

Lakeside Gardens Toukley site. Source: Real Commercial

After many more meetings with council to ensure the detailed designs were in accordance with council requirements, a new development application for the revised Lakeside Gardens development was lodged with council in May 2016.

It was to contain 71 residential units, 38 tourist accommodation units, commercial premises and underground parking and was touted as the development to revitalise Toukley, creating up to 355 jobs during the construction phase.

Mr Wheeler said this was followed by “seven months of silence from council” and the decision was made to take the matter to the Land and Environment Court.

“It would be funny if it wasn’t so serious,” he said.

Proposed site plan of Lakeside Gardens.

WORST COUNCIL BY FAR

MR WHEELER has been in property development for 55 years with many major developments including around Newcastle, Sydney CBD, Castle Hill, North Ryde and Botany.

He said he had never dealt with a more difficult council than the former Wyong Council.

“Botany Council and Sydney Council are reputed to be the worst but we’ve had a DA for a similar sized building go through Botany in three years and a development in the Sydney CBD that we got approved, built and sold within five years,” Mr Wheeler said.

“I’ve never struck anything as bad as Wyong and Central Coast,” he said.

Mr Wheeler said he was not confident that the new amalgamated council would be any better than the previous individual councils.

The former Wyong Council building.

“I hoped it wouldn’t but it’s got all the hallmarks of just being the same people with a different title,” he said.

“They are not getting the efficiencies they hoped for.

“Council’s attitude to development needs to change. They need senior people that are capable of assessing a development quickly. They need to develop a team of competent people who can make a decision and get on with job.”

Mr Wheeler on the Toukley site. Picture: AAP / Mark Scott.

PROJECT ABANDONED

MR WHEELER said his experiences with council had also caused him to pull out of a plan to develop 16.5 hectares of industrial land near Warnervale airport.

“I was in a joint venture there but I pulled out because I could see it ending up as another Toukley,” Mr Wheeler said.

“This is a $100m development and 500-600 jobs we’re talking about.”