Northern Beaches Council to pay out $6.75m to Built Athas over Whistler St carpark dispute
A long-running dispute between Northern Beaches Council and a developer over thwarted plans to redevelop Manly’s Whistler St carpark has ended, with both parties reaching a final settlement.
Manly
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Ratepayers will have to pay $6.75 million to a developer following a dispute over plans to redevelop Whistler Street carpark.
Following mediation before Keith Mason QC, the dispute between Built-Athas and Northern Beaches Council relating to the development of Manly Council’s Whistler St carpark has been resolved, without admission of liability by any party.
It was agreed that the council will pay Built Athas $6.75m in a final settlement.
The terms of the settlement are otherwise confidential.
The dispute related to a controversial plan by the old Manly Council to build a carpark under the oval to allow for the redevelopment of the Whistler St triangle as a cultural hub.
It was reviewed by the newly amalgamated Northern Beaches Council under administration.
Administrator Dick Persson cancelled plans to build a carpark under Manly Oval after a series of public protests.
At the time, Cr Candy Bingham, said the U-turn by the council was “real community power at its best”.
In August 2016 Mr Persson scrapped the plan to build a carpark under Manly Oval to be paid for by a 99-year lease on the Whistler St site.
The council then moved to cancel the Whistler St redevelopment.
However, the tender for the Whistler St development had already been awarded to Built Athas
The dumped developers of the Whistler St triangle site lodged a claim against Northern Beaches Council in the NSW Supreme Court in October 2017.
In March, 2017 the Manly Daily reported that Built Athas was seeking $49 million in compensation. That figure later ballooned to $74 million.
That claim by Built-Athas 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.
At the time Built-Athas said it was “disappointed that council frustrated the process and erroneously abandoned the project”.
“Over the last 12 months, Built Athas made a genuine attempt to negotiate with Council for an outcome acceptable to both parties,” a spokesman said at the time.
“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.”
Mayor Michael Regan said in a statement following the settlement.
“Council is pleased to have settled the case as part of the continuing completion of matters arising from the amalgamation and wishes to thank councillors, employees and external advisers who have contributed to the conduct of the case and the settlement,” he said.
HOW THE DRAMA UNFOLDED:
May 2009: Plans were hatched to activate Manly’s laneways into Melbourne-style cosmopolitan hubs.
March 2009: Council announced winners of a design competition for the ‘triangle site’ in Whistler St.
November 2010: Council gives its first indication of plans, calling it Manly 2015. It includes a carpark under Manly Oval funded by Whistler St redevelopments.
September 2012: Council holds elections. Rumblings on Manly 2015 begin soon after.
April 2013: Concerns over the future of Manly’s Whistler St carpark site prompted some councillors to try and stop it being demolished. Initially Hugh Burns, Candy Bingham and Cathy Griffin voted against it.
June 2013: Candy Bingham hosts the first public meetings of concerned residents over the Manly Oval carpark.
February 2015: After five years of debate Manly Council decided the best way forward in a closed-door meeting.
April 2016: Residents were shut-out of yet another closed meeting where tenders were awarded.
The public were locked out of a council meeting on manly Oval Carpark in April. Picture: Candy Bingham.
The public were locked out of a council meeting on manly Oval Carpark in April. Picture: Candy Bingham.
May 2016: DA was completed and sent to the JRPP the day before council amalgamations.
May 19: Administrator Dick Persson ordered a review at the first Northern Beaches Council meeting in May.
July 7: Council releases information suggesting former Manly Council had breached the Local Government Act putting carpark plans in jeopardy
August 23, 2016: Manly Oval carpark and Whistler St redevelopment cancelled after review.
More to come.