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Shopping centres and developer charges

Last Post 5/12/2024 1:18:50 PM by lorenzo.sposito@midcoast.nsw.gov.au. 7 replies.
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Shopping centres and developer charges

04-12-2024 11:04 AM
 
tracey.hamer@midcoast.nsw.gov.au
by tracey.hamer@midcoast.nsw.gov.au
Joined 22-08-2019 01:40 PM
Posts 4
Hi all,
How does everyone deal with a change in use within a shopping centre in terms of higher water use and developer charges? Eg, cafe to laundromat. Who should pay the developer charges - the shopping centre owner or the lessee?
Do other LWUs seek developer charges for change in use within shopping centres?
Thanks in advance,
Tracey

Re: Shopping centres and developer charges

05-12-2024 10:34 AM
 
blogan@vtown.com.au
by blogan@vtown.com.au
Joined 05-03-2021 04:24 PM
Posts 2
Hi Tracey,
Some years ago at Tamworth we had a similar situation where a laundromat wanted to set up at a shopping centre by taking over a location that had a different previous business . On that occasion we did calculate developer charges for the increased demand on water and sewer Those charges were levied on the developer of the laundromat and not the owner of the shopping centre. As I recall we had several arguments with the developer and the owners of the shopping centre about this, but they eventually agreed to pay.

Good luck,

Bruce Logan

Re: Shopping centres and developer charges

05-12-2024 12:02 PM
 
Riverina Water County Council
by Riverina Water County Council
Joined 01-01-0001 12:00 AM
Posts 33
Hi Tracey,
Just a real high-level view, I would assess the shopping centre based of the retail space known (number of shops) to determine the Development servicing charges as a base rate.
From there each shop/ retail space would then need to be registered through a DA application for where the individual assessment could be done with the previous retail space issued as credit going forward.
E.g. 20 x shops @ 100m2 @ retail spaces = 0.007 (retail) x $4874.00 (Standard E.T) + amenities etc say $69k (developer pays)
Each shop has a circa $3,500.00 credit
Shop 1 is a takeaway / fast food no amenities
Calcs = 100m2 x 0.014 (fast food) x $4874.00 (Standard E.T) = $6,823.00
Shop 1 = $6,823.00 - CREDIT $3,500.00 = $3,323.00 to the individual shop owner / developer...
hope that makes sense.
Reagrds
Natalie

Re: Shopping centres and developer charges

05-12-2024 12:27 PM
 
Shoalhaven City Council
by Shoalhaven City Council
Joined 01-01-0001 12:00 AM
Posts 28
Tracey,
We have specific ET Classifications for “Commercial Multi Premise Development” and “Shopping Complex/Retail Superstore” which have an allowance for wet trades within the gross floor area. These are assessed at 1ET/210m2. In comparison
a stand alone “Supermarket” is assessed at 1ET/100m2 for food prep areas, 1ET/250m2 for office and 1ET/1000m2 for the supermarket (customer area).
We have had a few laundromats of late within multi premises developments
and we have charged them S64 due to their very high water usage. Most of the change of uses do not attract charges due to the wet trade allowance as above.
We always charge the applicant (which tends to be the lessee).
Matt Kidd
Shoalhaven Water

Re: Shopping centres and developer charges

05-12-2024 01:11 PM
 
lorenzo.sposito@midcoast.nsw.gov.au
by lorenzo.sposito@midcoast.nsw.gov.au
Joined 25-11-2024 02:57 PM
Posts 3
Hey Matt,
It seems that historically we have also charged the lessee. However, the long-term benefit seems to lay with the shopping complex owner, i.e. if the laundromat moves on in 12 months, they have paid the contributions but the shopping centre can lease to another laundromat which will have no applicable developer charges, the original laundromat would then pay developer charges at the next location they lease (potentially).
I would really like to hear your thoughts on this.
Lorenzo Sposito
Mid-Coast Council

Re: Shopping centres and developer charges

05-12-2024 01:17 PM
 
lorenzo.sposito@midcoast.nsw.gov.au
by lorenzo.sposito@midcoast.nsw.gov.au
Joined 25-11-2024 02:57 PM
Posts 3
Hey Natalie,
In this example the laundromat is leasing a space in a large shopping complex, would you charge the contributions to the laundromat or to the shopping complex?
cheers,
Lorenzo Sposito
Mid-Coast Council

Re: Shopping centres and developer charges

05-12-2024 01:18 PM
 
lorenzo.sposito@midcoast.nsw.gov.au
by lorenzo.sposito@midcoast.nsw.gov.au
Joined 25-11-2024 02:57 PM
Posts 3
G'day Bruce,
In this scenario, would the laundromat (leasee) be able to take their developer credits to a new location if they chose to lease elsewhere?
Cheers,
Lorenzo Sposito
MidCoast Council

Re: Shopping centres and developer charges

05-12-2024 01:37 PM
 
Shoalhaven City Council
by Shoalhaven City Council
Joined 01-01-0001 12:00 AM
Posts 28
Lorenzo,
That senario is the same with any developement. If a retail shop in a high street moves out and a cafe moves in they pay the additional charges so it is not specific to shopping complex. Some LWU do allow for a high water use charge to cover the cost of developer contributions. That senario allows the applicant to pay off the contribution and also can be transferred to some extent. If you try to transfer using some other method you may find it becomes difficult to manage and what happens if they change catchments. Going back to the basic concept of what developer contributiions are for means transferring can be problematic.
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