Company sues Territory Government for $130 million after residential development scrapped
Territory taxpayers could be forced to foot a $130 million bill over an NT Government decision based on environmental concerns.
TERRITORY taxpayers could be forced to foot a $130 million bill over the NT Government’s decision to scrap a major housing development.
Dover Investments – a subsidiary of developer Austcorp Property Group – was meant to begin work on The Boulevarde in Bayview in 2016, but Labor scrapped the $800 million development after winning the 2016 election, citing environmental concerns.
The NT News understands Dover is seeking at least $130 million in compensation for lost earnings, and has hired top Sydney silk Bret Walker SC in its fight with the Government.
It is understood the Government has made a counter claim, seeking $1.5 million in compensation for a road it built leading in to the planned development from Tiger Brennan Drive.
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The Boulevarde was the third and final stage of development in Bayview.
It had been planned since 1998 and was set to include 1175 dwellings, a waterfront park, mangrove walk, cycle paths, playgrounds and a public jetty with restaurant.
It is understood Dover had tried to convince the Government to reverse its decision but is now seeking compensation after those negotiations failed.
Sources told the NT News the company would seek at least $130 million in compensation after hiring an independent valuer to assess its lost earnings.
Mediation between the parties last month failed to reach a settlement and the matter is now headed for a potentially costly legal battle.
The matter is listed for a Supreme Court hearing today before Justice Terrance Coulehan.
Planning Minister Eva Lawler and Dover Investments both declined to comment.
Before the NT election, Labor’s then planning spokeswoman Natasha Fyles said the party had opposed the development due to environmental concerns.
“We are aware of the considerable environmental risks outlined in the terms of reference for the EIS issued by the EPA and the longstanding concerns by residents and others regarding the ongoing development of this area,” Ms Fyles said.
“We have listened to the views of the Bayview community who are concerned about the destruction of mangroves, the impact on the environment, the effect on property prices and current traffic levels,” she said.
Originally published as Company sues Territory Government for $130 million after residential development scrapped