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Legislative Assembly for the ACT: 2003 Week 9 Hansard (28 August) . . Page.. 3375 ..

MR WOOD (continuing):

Members would be aware that in 2001 the previous government demolished Burnie Court with a view to securing a buyer who would redevelop the site and return a significant number of properties to public housing. In the course of a two-stage tender process it became clear that the presence of a large quantity of public housing would impact adversely on both the price of the land and the attractiveness of any development.

This government has subsequently been concerned to ensure that a component of affordable housing be included in the redevelopment and, for that matter, any other major development. Accordingly, a new process was undertaken to subdivide the site into five blocks.

In April of this year, I announced that ACT Housing would build 24 older persons units on a parcel of land at the southern end of the site for public housing tenants. The 24 new units will provide modern, secure, high-quality homes for older Canberrans in a wonderful location close to shops, medical facilities and services. Several of those units will be adaptable, with a flexible floor plan and fixtures to allow modification for tenants with special needs.

In regard to the remaining four blocks, we have taken the initial decision to sell block 1-the most northern block. It is anticipated that this will be a relatively straightforward sale that will establish a price benchmark for the remainder of the site. Following the sale, the government will decide whether to sell the remaining blocks or enter into a joint venture development with either the Land Development Authority or the private sector.

Irrespective of whether blocks 2, 3 and 4 are sold or redeveloped in a joint venture, there will be a requirement in all blocks for the provision of affordable housing. The government is currently considering a number of options through which this may be achieved. However, in relation to the sale of the first block, my department has focused on the public and community housing sector.

There will be a modest requirement on the developer to offer 5 per cent of the units developed on this block to a community housing provider at 80 per cent of their value. In all the very considerable range of options that have been considered over a long period, this seems the one best to take on at this stage. In the event that this offer is not taken up, they will be purchased by ACT Housing.

The government sees it as a priority to subsidise in one way or another a component of affordable housing on each of the blocks included in the sale or redevelopment of the former Burnie Court site. It is imperative that block 1 is sold as soon as possible to commence that process. The site has been vacant for nearly two years and will alleviate to a small extent the shortfall of development sites currently available in the urban areas. The government expects to be in a position to announce its preferred development options for the balance of the site by early December 2003.

I present the following paper:

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