Secret report says Parramatta Rd could raise $2 billion from developers for the State Government
A CONFIDENTIAL report has been unearthed that reveals the State Government could collect billions of dollars in revenue from the redevelopment of down-at-heel Parramatta Rd.
Inner West
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A CONFIDENTIAL report has been unearthed that reveals the State Government could collect billions of dollars in revenue from the redevelopment of down-at-heel Parramatta Rd.
The document prepared in 2015 by consultants for the government’s property agency UrbanGrowth, predicts more than $2 billion could be gathered from Stamp Duty and taxes levied on private developers.
State Labor MP for Strathfield Jodi McKay, who battled bureaucrats for six months to have the secret “value capture assessment” report into the Parramatta Road Transformation Project released, said it was evidence the government favours developers over the community.
The report prepared by consultants HillPDA focuses on the amount of money the government could earn from developers along the dilapidated corridor.
Ms McKay had to resort to an appeal to the NSW Civil and Administrative Tribunal to get hold of the report after a freedom of information request was refused.
The report said that the government could collect at least $1.4 billion in Stamp Duty over a 20 year period from property sales to developers.
It could also earn $644 million in value capture — (Value Capture is when governments impose a tax on the increase in land values that occurs when the government builds infrastructure such as train line and schools nearby).
It also suggested that up to $521 million could also be collected from developers under Section 94 of the Environmental Planning and Assessment Act to pay for local infrastructure such as libraries, parks and community centres.
The consultant’s report also suggests that a review of current planning controls could result in 19,600 more or “bonus” dwellings being built on top of the 40,000 homes predicted.
The state government has been marketing the redevelopment as a “revitalisation of the Parramatta Road Corridor and its local communities”.
But Ms McKay said the document shows that all the government was interested in was dragging revenue from developers and not improving the lives of residents.
“What we have always suspected is that revenue for government was always the driver for this project.
“The community still doesn’t know if the Parramatta Light Rail project is going through to Strathfield, the light rail line along Parramatta Rd has been scrapped. These projects that are supposed to provide a better place for people to live are not going ahead.”
Ms McKay said the report suggests the government could make more money if it changes planning rules
“The government has been deceitful and the community has had a gutful of them backing down on their promises and not being clear on their intentions.”
In November last year the government released its new 30-year “Parramatta Road Corridor Urban Transformation Strategy”. It scaled down the government’s previously published residential development targets to 27,000 dwellings, in favour of more commercial development.
An UrbanGrowth NSW spokesman said the Government’s foremost objective was to revitalise one of the city’s most congested roads.
“New population growth along the corridor will mean an increased need for important community facilities such as schools, hospitals, child care facilities, transport and open space,” he said.
“Funding sources are needed to deliver adequate infrastructure to support these services.
“The Infrastructure Schedule that supports the final Parramatta Road Strategy was considered and endorsed by government and supersedes the draft value capture report.”
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