Boroondara Council sues Sonya Kilkenny and James Packer-backed consortium over project approval
Boroondara Council has sued Planning Minister Sonya Kilkenny and a James Packer-backed consortium over the government’s approval of the controversial $520 million Kew project on the former site of Leo’s Supermarket.
The council took action in the Supreme Court of Victoria, asking the minister to quickly approve the consortium’s plans to build an 18-storey residential and retail precinct at the Kew Junction site, which were either canceled or declared invalid.
In its submission to the court, the council argued Kilkenny’s decision to grant permission to developer Orchard Piper was “legally unreasonable or unreasonable” and was based on “errors of law”.
The legal action centers on a city-owned parcel adjacent to the project that Orchard Piper is proposing to spend up to $12 million to transform into new public open space under an approved permit. But the council responded to the proposal, saying the developer “does not own or control” the land.
“In making his decision to grant the permit … the Minister took into account a theoretical ‘offer’ from the government. [developer] The council’s claim states that it has the power to unilaterally carry out certain works on adjacent land.
“ [developer] “He does not own or control the adjoining land and it is not within his control to conduct these affairs.”
Dubbed “Kew Village”, the Orchard Piper development will comprise 194 homes across four buildings of varying heights, including one, two and three-bedroom apartments and townhouses, as well as ground floor retail and public space. Construction is scheduled to begin late next year.
Approval was granted by Kilkenny in May through the Development Facilitation Scheme, which allows the state government to override local regulations, including activity center boundaries, imposed by the state government to fast-track major housing projects that include affordable homes.
The site is in an area of the Kew activity center that allows buildings up to 16 storeys high, and a few hundred meters away Development Victoria is bulldozing the VicRoads site for housing.
Boroondara Mayor Wes Gault said the council had given extensive feedback to the planning minister on how the development could be improved and was “disappointed that a few changes have been made”.
Changes the council would like to see include a 16-storey height limit to reduce shading, as well as “better landscaping” and materials for the portion of the project located on city-owned land.
“We are not opposed to this development, in fact we agree that it is a great site for a new mixed-use development,” he said.
“However, we want to provide the best outcome for our community with a building that better fits the site, has affordable housing, and includes a public environment that serves us all.”
The council’s legal action was taken against Kilkenny and a company called Princess Kew Investments Pty Ltd, which is owned by Orchard Piper and a company controlled by billionaire James Packer’s property investment vehicle NPACT Pty Ltd.
A Boroondara spokesman also expressed wider concerns about the way the state government approves developments, saying they believe local councils should be the decision-makers for development applications submitted within their municipalities.
A Victorian government spokesman said “the status quo is not an option” for the Kew area.
“We need to offer more housing options close to trains, trams, schools and businesses, and the development on the former Leo’s Supermarket does just that,” they said.
“Well-connected suburbs like Kew can’t remain locked down forever. Jess Wilson’s Liberals and Boroondara Council are working overtime to stop young people buying a home close to where they grew up.”
Orchard Piper declined to comment.
Start your day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
Rachael Ward is a journalist on The Age’s City team. Contact her at rachael.ward@theage.com.auConnect via email.
