All Topics / Help Needed! / Brisbane City Council want to resume my development site!
Hi,
Just found out that Brisbane City Council want to resume my property in Brisbane.
The site is zoned MP3 and they have just realized what it is worth to them hence the reason they want it. They own the site next door and joining the 2 sites together will make their site worth bucketloads.
I just bought it and they were too slow to purchase it – but typically like any government department they are willing to BULLY their way into taking my property which has SUBSTANTIAL value if combined with theirs!
I am not willing to sell as it is simply worth too much to me in the long term – and their initial offers are simply offensive.
How can I stick up for myself and prevent them from moving on me. They missed out and now they are acting like spoilt children and simply taking it.
I can't believe they are behaving like this. This is my property – I got in first and they were too slow so they should rack off…….
HELP!
I have already engaged a solicitor and valued but this is only going to result in a price.
I simply don't want council getting their hands on my future superannuation and potential large long term gain.
Boris, as far as I know, BCC does not have any power of resumption under the Local Govt Act or under the state or federal Acts relating to the resumption of land.
If they wish to purchase, then they will need to make an offer (which is too good to refuse). Remember though, don't be too greedy as what development potential is there should they decide to proceed without your block (assuming it is feasible for the remaining land owned by council to be developed).
If you get a decent offer now, it will be better than having to wait years for a capital gain to kick in.
Also, think about delaying exchange until you have owned for 12 months to reduce your cgt liability.
Thanks Scott,
Are you sure about their resumption powers as the solicitor and others seem to think it is legit and due process.
The issue for them is they are "backed into a corner" for development potential due to their site position so need our lot to make it work for them.
Thanks for your advice so far and I will certainly look into what powers they have – As this is a big one regarding the whole issue.
In a nutshell: Holding Redlich – State Powers
Other solicitors with specialisation in this field: GOVERNMENT COMPULSORY ACQUISITION OF LAND
Sorry to give you a bum steer but the Acqusition of Lands Act (Qld) DOES confer rights upon councils to acquire land (not necessarily the case in other states as Sydney/Melb etc have many LGAs not just one covering the whole of Sydney or Melbourne metro areas).
The Act does nominate the purposes which council can acquire land : Schedule – not sure what an MP3 zoning allows other than playing of music through headphones. If it isn't is the schedule then it may be more difficult to compulsorily acquire the land.
Yeah I thought that was the case.
Thanks anyway.
Think I will have to jump up and down in the media to sway opinion – really my only option and it will probably not do much god anyway.
Antibullying maybe?
Thanks again
The real concern is even if you successfully hold out, they could potentially block your development, as the assessors of your application.
Best to seek specialised legal advice on this.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
They can block it, but you can still take it to a higher power. In Victoria you can apply to VCAT who can overturn local council's decision in a court-hearing-style format. Not sure of the name of the equivalent body in QLD.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Have an auction.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Sounds like the previous owner knew this was coming, he probably already had offers, and just sold it to get his money rather than taking the councils pathetic hand outs. It sad that they can just "acquire it" at what they think it is worth, especially in a down market. SEQ markets have fall dismally over the last couple of years, and its funny at signs prices are going up in areas (especially areas that are improved by the airport link the new airport link) they want to take it now.
If they want it for infrastructure or reasons pertaining to better the local community, I don't think you stand a chance, you can flail your arms and jump up and down as much as you want, but at the end of the day the movie The Castle, was just that… a movie, when the government wants… it gets.
I don't know if you can claim the land is worth its rated value (the amount you have to pay rates on), but I have a suspicion that that amount would be greater than its current worth, that could go in your favor (depending on the legal side of things). Also I would investigate if you just bought it, about a refund for stamp duty and legal costs in acquiring your property, if you can prove they were already trying to acquire this property before you bought it, then I don't see why they should bare these costs that you have lost…you can only ask, if you don't ask you don't get, most of the time answers to our questions will be no, the harder you argue and make it difficult for them the more you might get.
One bit of advice, just don't act rude or spoilt toward them (telephone conversations, in correspondence etc) as the decision makers are human as well, whilst they follow policies etc, a lot of government policies are vague, open to interpretation and ultimately leave some leeway to the decision maker, if they don't like you or your attitude this leeway may going against you, instead of for you.
You can always try ACA / TT, and I would like to see you win, as it would be a win for every investor, but I really don't like your chances, as with investing, don't let emotions (including your pride) get involved, go on the facts, as your legal fees could end up costing you more than you would have lost if you took their offer.
Basic presumption: have you been served a notice by the BCC that they are seeking to compulsorily acquire your property? – if not, you can sell which ever way you like to whoever (ie auction as above). Running off to media outlets will make you out to look like a real dropkick. Use your consultant valuer to determine the value of the property. Analyse the development potential of your block as a stand alone site.
Very few compensation cases will go to court (esp when there is little at stake) they will often go to a mediator or determination.
What is your basis for objecting to the resumption? ("Oooooh – I found this site first!" does not stack up in an acquisition case) you do get compensation, it happens every day. A site that I manage was recently resumed for a rail line, do I get compensated for a lost management? I think not.
Remember, you too have bought in a depressed market and the process of compulsory acquisition provides certain grounds for compensation.
Hi Boris,
In your first post you said, "I simply don't want council getting their hands on my future superannuation and potential large long term gain."
I don't know enough about you (age, income, experience etc) but in the long run this property shouldn't make or break your super plans.
Step back from the emotion of your current situation and treat this 'offer' as a business decision and try and get the best out of the situation you find yourself in. You already seem to have two skilled people in your team so make sure you milk them and their expertise so you can milk what you can out of this block if you do end up selling.
Don't forget 'super' is your goal – not this property. This property is only helping you to achieve your goal – the property is not the goal. There will be others.
PS – I am not saying give in – I am saying negotiate as hard as you can so you get the possible outcome for yourself. .
For what reasons does the Brisbane city council want to resume your land for?
I have a consultant who has extensive experience in land resumption. They maybe able to help you protect your investment, drop me a line or a call and I can pass on their details.
I know 100% that BCC can resume land for infrastructure planning and a few other things too. They must pay you fair market value for the land based on its zoning, not what you think it is worth. They must also pay you a rate based on the highest possible use for the land (eg if an easement goes over it and n fact it was useless they must still assume you can develop all of the land to MP3 zone).
What I can tell you is that if you have a valuation that differs, or you believe "some circumstance" would of added significant value to your land "fight it". You will not be able to stop the valuation but you have the right to appeal it and Council is obliged to get a 3rd party legal review to see if your claim has merit. If it does Council "must" pay that amount! I have personally seen a few people do this and to be honest about 75% of the time they get what they are after. Also Council's first approach is to "acquire the land" not resume – this means agreeing to a value that sometimes maybe more than the market value as long as a valuer supports it (cant waste taxpayers money).
Thanks for all the comments and help.
We have established that they are trying to say they are resuming it for one reason, but clearly the reason is not their true intention.
They have fabricated some reasons for resumption which we have established through research and RTI are false and clearly they are redeveloping the site.
They are clearly deceiving and manipulating the situation for a land grab so they can redevelop the site to a multi storey development.
Since when does Council become the developer! Shouldn't they be concentrating on delivering services to the community not playing developer?
Our site combined with theirs is worth substantial money and they are just robbing us!
I believe the resumption act only allows for highest and best use of the site being resumed and does not consider the highest and best use of if the site is amalgamated – of course, geared to suit them not me.
Anyone had this experience before?
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