Dumped developers of Whistler St triangle site set to take on council in court
The approved developers of the Whistler St triangle site in Manly have lodged a claim against Northern Beaches Council in the NSW Supreme Court after the plan was scrapped.
Manly
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DUMPED developers of the Whistler St triangle site in Manly have lodged a claim against Northern Beaches Council in the NSW Supreme Court.
Built Development Group and Athas Holdings will stake their claim for compensation at a directions hearing on November 10.
It follows a decision by then-council administrator Dick Persson in August last year to scrap a plan to build a carpark under Manly Oval to be paid for by a 99-year lease on the Whistler St site.
In March the Manly Daily reported that Built-Athas was seeking $49 million in compensation. That threat led to negotiations between the two parties.
But a year after the contracts were broken the developer stopped negotiations.
Built-Athas would have paid then-Manly Council $37.5 million in cash and another $10 million in-kind to lease the Whistler St site.
The site includes the carpark and library, meant to be bulldozed to make way for a new top-floor library with 180-degree views of the Manly Cove. It would have also hosted residential units and shops underneath.
“Built and Athas are disappointed that council frustrated the process and erroneously abandoned the project,” a Built spokeswoman said.
“Over the last 12 months, Built and Athas made a genuine attempt to negotiate with Council for an outcome acceptable to both parties.
“Built and Athas consider that there are a number of available options to advance the project which are both commercially viable and of public benefit.
“The Council chose not to take up any of these options. This has left us no alternative but to issue court proceedings.”
Council chief executive officer Mark Ferguson stood by the decision.
“The deeds foreshadowed future negotiations and future agreements which depended on a number of contingencies,” he said.
“The developments were controversial and the subject of considerable and widely publicised concerns by ratepayers at the time.
“The termination decision was made following an extensive review by Northern Beaches Council, including the commissioning of expert reports and reviews of compliance with the planning controls for Manly CBD and the value which would be received by Council for the site.
“Council will be strongly defending any claim in respect of the Whistler Street car park development.