The economics of retention
32 The table at Paragraph 17 indicates that the four options that the parties investigated all result in a loss of about $0.25 million. In our opinion, however, only Option B has any relevance. This is because Options C and D involve the demolition of Glenowen, so they have no advantage from a heritage conservation viewpoint; and they also involve restricting new development to the footprint of the existing, which makes no sense at all. Options C and D would result in a financial loss to the applicant without any public benefit being achieved. Option A, which involves the retention and renovation of the original Glenowen without any new addition, would be desirable from a heritage viewpoint, however a house of 80m2 on a "quarter-acre" block in Castle Hill (a suburb in which houses of 500m2 are considered small) is likely to be unsaleable. We have therefore concentrated on Option B, which involves the demolition of the unsympathetic additions, the refurbishment of the original Glenowen and the sympathetic addition of a new two-storey wing. This option is more likely to have market appeal and therefore lead to the overall conservation of Glenowen. It is therefore acceptable on heritage grounds.
33 The Table in paragraph 17 indicates that, on the assumption that the land parcel is worth $470,000, the development of the site according to Option B would lead to the loss of $248,000. However, the Table also shows that it would cost $678,000 to construct and renovate according to Option B, and that the resulting development (ie a refurbished Glenowen with a sympathetic addition of a new two-storey wing) could be sold for $900,000. We reason from this that the value of the land parcel on which demolition of Glenowen is not permitted, is the difference between $900,000 and $678,000, ie $222,000. This means that the obligation to retain Glenowen reduces the value of the land parcel from $470,000 to $222,000.
34 We are sufficiently aware of the realities of development to know that the above does not guarantee Glenowen's survival. There is no legislation to compel an owner to look after an item of local significance. The council missed its chance in 2005 to ensure Glenowen's survival by failing to impose a condition of consent that would require renovation to be completed before the subdivided allotments can be registered. Mr Rappoport may well be correct in his suggestion that the refusal of this application will lead to continued neglect until Glenowen eventually collapses and its retention becomes impractical. However, the evidence in the Table in paragraph 17 justifies us in the conclusion that, as long as retention is required, there is more money in renovating Glenowen than in neglecting it.
35 We are strengthened in our conclusion by the fact that, in seeking approval for the subdivision, the applicant stated that it "wishes to subdivide the property, not only to obtain a financial return from the investment, but also to help defray the cost of restoring the heritage values of the property and managing them in the future" (see paragraph 3).
36 We accept that part of the reason for the diminution of Glenowen's heritage significance is due to the council's action in widening David Road and the subsequent removal of vegetation. While we agree with the applicant that this is regrettable, it is not sufficient reason to justify demolition. The primary motivation for our decision is the finding that Glenowen retains sufficient heritage significance to justify retention; however, we are also mindful of the fact that much of the physical deterioration of the building has occurred since 2005. If we accepted that recent deterioration is a justification for demolition, it would signify that, in order to be allowed to demolish a heritage item, an owner needs only to neglect it.
37 For the above reasons, the appeal is dismissed.