Mantello Holdings seeks compensation from council and consultant over $3.5m land

A property development company that had to stop construction on land purchased from the Borough of Queenscliffe after discovering asbestos is pursuing millions of dollars in compensation.

In March, workers in protective equipment move contaminated soil with asbestos signs around the building site in Murray Rd, Queenscliff. Picture: Brad Fleet

A property development company that had to stop construction on land purchased from the Borough of Queenscliffe after discovering asbestos is pursuing millions of dollars in compensation from the council.

Mantello Holdings purchased land at Murray Rd, Queenscliff from the council for the purpose of residential development in 2023 for $3.5m.

As part of the purchase, the developer relied on a 2021 report by an environmental consultant company, called Environmental Assessment Services, that was responsible for assessing the contamination status of the subject land, court documents state.

In January 2024 Mantello Holdings began construction at the site, but had to halt this after discovering the area was contaminated.

The site at Murray Rd was previously used by the council as a tip in the 1990s.

Works on a block on Murray Rd Queenscliff where asbestos had to be cleared. Picture: Alison Wynd

According to a writ filed in the Supreme Court, Mantello Holdings said it was under the impression the land had been improved as a result of clean fill deposited on the site.

Mantello Holdings alleges that the deposit of waste resulted in it being unable to use the land.

Mantello Holdings is also claiming the council knew or should have known that rubbish on the land would impact the residential development and had taken no steps to remove the asbestos.

In March, workers in protective equipment move contaminated soil with asbestos signs around the building site in Murray Rd, Queenscliff. Picture: Brad Fleet

Mantello Holdings is also claiming Environmental Assessment Services breached its duty of care by failing to make any recommendations for further analysis of the risk of asbestos and failed to identify asbestos at the land.

According to the Supreme Court writ, Mantello Holdings is pursuing compensation for money spent on the site already, including dealing with suspected contamination issues, management costs, holding costs, loan fees, planning application and money used to acquire the subject land.

Works on a block on Murray St Queenscliff where asbestos had to be cleared. Picture: Alison Wynd

Mantello Holdings claims it would not have purchased or taken the steps to develop the subject land and would have used the money on other projects.

A Borough of Queenscliffe spokesman said council was confident that all necessary due diligence was exercised for the purpose of the sale.

“Our communication with the developer concerning these issues is ongoing,” the spokesman said.

“With respect to the dust emissions, council continues to monitor the developer’s activities to ensure they are meeting the requirements of their construction and environmental management plan.”

In March, workers in protective equipment move contaminated soil with asbestos signs around the building site in Murray Road, Queenscliff. Picture: Brad Fleet

In March, it was reported that asbestos fibres had been potentially drifting into the backyards and homes of a group of neighbours near the Murray Rd development.

Construction workers in gas masks and head-to-toe hazmat protection gear could be seen on site earlier this year.

The writ has not yet been served to the Borough of Queenscliffe or Environmental Assessment Services.

Originally published as Mantello Holdings seeks compensation from council and consultant over $3.5m land