HEADNOTE
[This headnote is not to be read as part of the judgment]
The appellant, Moorebank Recyclers Pty Ltd, and the first respondent, Tanlane Pty Ltd, own neighbouring lots of land. The first respondent sought to develop its land for residential subdivision and for the construction of a marina.
The first respondent developed a planning proposal for its land which involved two proposed amendments to the Liverpool Local Environmental Plan 2008. One of the proposed amendments sought to enable residential development as an additional permitted use on the site of the proposed marina, zoned RE2 "Private Recreation".
It was common ground that the first respondent's land the subject of the planning proposal is contaminated. Accordingly, at some point the requirements of clause 6 of State Environmental Planning Policy No 55 - Remediation of Land ("SEPP 55") would need to be complied with prior to any actual amendment to the Liverpool Local Environmental Plan.
On 31 August 2016, the third respondent, Liverpool City Council ("the Council"), passed resolutions supporting the development and authorising an officer of the Council to forward the planning proposal in an amended form to the second respondent, the Greater Sydney Commission ("the Commission"), for the purposes of a "gateway determination" pursuant to Part 3 Division 4 of the Environmental Planning and Assessment Act 1979 (NSW) ("the Council resolutions"). On 9 March 2017 a delegate of the Commission made a gateway determination that the planning proposal should proceed subject to certain conditions ("the Gateway decision").
The appellant brought proceedings in the Land and Environment Court claiming that the Council resolutions and the Gateway decision were invalid by reason of a failure to comply with cl 6 of SEPP 55.
The primary judge dismissed the appellant's claim on the basis that the obligations imposed by cl 6 of SEPP 55 were not required to be complied with at the point in time of both the Council resolutions and the Gateway decision. The primary judge also observed that, in any event, the Council resolutions were not necessarily amenable to judicial review and that cl 6 of SEPP 55 would not apply to the part of the planning proposal which sought to enable residential development on part of the first respondent's land.
The issues on appeal were:
- Whether the Council resolutions were amenable to judicial review?
- Whether the Council and the Commission were required to comply with cl 6 of SEPP 55?
- Whether cl 6 of SEPP 55 applied to the part of the planning proposal seeking to enable residential development on part of the first respondent's land?
- Whether the Council complied with subcll 6(1) and 6(2) of SEPP 55?
- Whether any failure by the Council to comply with cl 6 of SEPP 55 invalidates either or both of the Council resolutions and the Gateway decision?
The Court (Basten JA, Payne JA, Emmett AJA) held, allowing the appeal:
In relation to issue 1,
Per Basten JA (Payne JA agreeing):
The decisions of the Council to approve the planning proposal and to forward it to the Commission were necessary steps in the process of creating legal entitlements in the owner of the land and were therefore reviewable: [33]-[41]
Hot Holdings Pty Ltd v Creasy (1996) 185 CLR 149; [1996] HCA 44 applied.
Per Payne JA (Basten JA and Emmett AJA agreeing):
The Council resolutions were amenable to judicial review. The Council resolutions were steps taken to prepare the planning proposal within the meaning of s 55 of the Environmental Planning and Assessment Act and the case was advanced as one where a mandatory statutory precondition to the exercise of a power had not been complied with, in respect of which it sought a declaration of invalidity of the two impugned decisions and injunctive relief. That relief was available: [75]-[85]
In relation to issue 2,
Per Basten JA (Payne JA agreeing):
The Council exercises the function of preparing a planning proposal in accordance with s 55 of the Environmental Planning and Assessment Act 1979 (NSW). It follows that the Council was required to comply with cl 6 of SEPP 55 in preparing the planning proposal: [19]-[20]
Per Payne JA (Basten JA and Emmett AJA agreeing):
Clause 6 of SEPP 55 must be complied with at the time that a planning proposal is prepared under s 55 of the Environmental Planning and Assessment Act and submitted to the Minister or Commission under s 56(1). The Council was plainly the public authority responsible for preparing the planning proposal within the meaning of ss 55 and 56, and thus a "planning authority" within the meaning of cl 6 of SEPP 55. It was therefore required to comply with cl 6 of SEPP 55 prior to forwarding the planning proposal: [86]-[107]
Huntlee Pty Ltd v Sweetwater Action Group Inc; Minister for Planning and Infrastructure v Sweetwater Action Group Inc [2011] NSWCA 378; (2011) 185 LGERA 429 considered.
In relation to issue 3,
Per Payne JA (Basten JA and Emmett AJA agreeing):
The effect of the proposed amendment, if made, would be to include in a particular zone contaminated land so as to permit a change of use of the land, being residential development, within the meaning of cl 6 of SEPP 55. For that reason the proposed amendment falls within subcl 6(1) of SEPP 55: [108]-[119]
Blue Mountains City Council v Lawrence Browning Pty Ltd (2006) 67 NSWLR 672; [2006] NSWCA 331; Agostino v Penrith City Council [2010] NSWCA 20; (2010) 172 LGERA 380 applied.
In relation to issue 4,
Per Payne JA (Basten JA and Emmett AJA agreeing):
There was, on the evidence, no attempt by the Council to grapple with the requirements of subcl 6(1): [131]-[135]
The obligations in subcl 6(2) of SEPP 55 were not complied with in circumstances where, at the time of the Council resolutions, the only report before the Council concerned a different development and did not address any of the matters in subcl 6(2): [120]-[129]
Parramatta City Council v Hale (1982) 47 LGRA 319; Centro Properties Ltd v Hurstville City Council [2004] NSWLEC 401; (2004) 135 LGERA 257; New South Wales Aboriginal Land Council v Minister Administering the Crown Lands Act (2014) 88 NSWLR 125; [2014] NSWCA 377 considered.
In relation to issue 5,
Per Payne JA (Basten JA and Emmett AJA agreeing):
The step required by s 56(2) of the Environmental Planning and Assessment Act cannot lawfully be undertaken unless the process of preparing the planning proposal has been carried out by the relevant planning authority under s 55(1) in a legally valid manner. In preparing a planning proposal, the language of cl 6 of SEPP 55 is mandatory. There is a clear legislative intention that a planning proposal that did not comply with SEPP 55 at the s 55(1) stage should not be permitted to proceed under s 56: [138]
As the preparation of the planning proposal under s 55 of the Environmental Planning and Assessment Act by the Council was flawed for failure to comply with cl 5 of SEPP 55, the step taken to forward the planning proposal to the Commission under s 56(1) was not a valid exercise of power: [141]
In circumstances where the Council resolutions are invalid, it follows that the Gateway decision is itself invalid: [142]