2016-17 Budget Statements 247 Land Development Agency LAND DEVELOPMENT AGENCY – STATEMENT OF INTENT The Land Development Agency is a Territory Authority established under the Planning and Development Act 2007. This Statement of Intent for 2016-17 has been prepared in accordance with Section 61 of the Financial Management Act 1996. The responsible Minister, Andrew Barr MLA, was consulted during the preparation of the Statement of Intent. The Statement of Intent, which focuses on the 2016-17 Budget year, has been developed in the context of a four year forward planning horizon to be incorporated, as far as practicable, into the Land Development Agency’s strategic and business planning processes. The Land Development Agency 2016-17 Statement of Intent has been agreed between:
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2016-17 Budget Statements 247 Land Development Agency
LAND DEVELOPMENT AGENCY –
STATEMENT OF INTENT
The Land Development Agency is a Territory Authority established under the Planning and
Development Act 2007.
This Statement of Intent for 2016-17 has been prepared in accordance with Section 61 of
the Financial Management Act 1996.
The responsible Minister, Andrew Barr MLA, was consulted during the preparation of the
Statement of Intent.
The Statement of Intent, which focuses on the 2016-17 Budget year, has been developed in
the context of a four year forward planning horizon to be incorporated, as far as practicable,
into the Land Development Agency’s strategic and business planning processes.
The Land Development Agency 2016-17 Statement of Intent has been agreed between:
2016-17 Budget Statements 248 Land Development Agency
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2016-17 Budget Statements 249 Land Development Agency
LAND DEVELOPMENT AGENCY
As a result of the 2015 amendments to the Financial Management Act 1996, the budget
statement for Land Development Agency (LDA) is its Statement of Intent.
Purpose
The key outcomes for the LDA are:
• The LDA contributes positively to the economic and social development of the ACT by
building vibrant and sustainable communities through greenfield and urban renewal
projects for the development of residential, commercial, industrial, community and
non-urban land.
• The LDA acts in a commercially responsible, ethical and efficient manner when
developing and selling land on behalf of the ACT Government.
• The LDA balances potentially competing public sector and commercial priorities and
provides opportunities for private sector development to optimise the community
benefit from the ACT’s land assets.
Nature and Scope of Activities
General Activities
The LDA is responsible for the release and development of government owned land for
residential, commercial, industrial and community purposes.
The LDA’s key outputs for 2016-17 are:
• In contributing positively to the economic and social development of the ACT, the LDA
will:
− deliver the Government’s Indicative Land Release Program for residential,
commercial, industrial and community land uses;
− provide advice to Government on property market conditions to inform development
of targets in the Land Release Program and support direct sales of land;
− deliver high quality, sustainable developments, including public realm and community
development;
− deliver an adequate and diverse supply of land for construction and developments in
the Territory that meets market demand and anticipates demographic changes; and
2016-17 Budget Statements 250 Land Development Agency
− contribute to the strategic delivery of Government policies and priorities including
those related to land development, urban and public housing renewal, suburban
sustainability, strategic land acquisitions, the asbestos response, housing affordability
and urban intensification, particularly along the Capital Metro corridor.
• In acting in a commercially responsible, ethical and efficient manner, the LDA will:
− operate efficiently and provide agreed returns to the Territory;
− consider the long-term sustainability of the Territory in all key commercial decisions
on land in the ACT;
− ensure an adequate supply of Government-owned land is in the planning and
development pipeline for future release; and
− deliver meaningful and transparent community engagement about the land
development process and projects.
• In balancing potentially competing public sector and commercial priorities, the LDA will:
cultivate and maintain productive relationships with the private sector and across the
ACT Government.
Statement of Planning Intent
The 2016-17 LDA Statement of Intent has been prepared with due consideration of the
objectives of the Statement of Planning Intent for the Minister for Planning, Minister
Gentleman MLA, which sets out the main principles that are to govern planning and land
development in the ACT over the short term. The Statement of Planning Intent seeks to
achieve a more compact and sustainable city that is inclusive, vibrant, connected,
prosperous and environmentally responsible, while aiming to encourage quality design of
the public realm, innovation and flexibility in the planning system and maintaining an
appropriate level of certainty in planning and design outcomes on the ground.
The LDA will provide support in addressing the community’s desires for compact and
sustainable neighbourhoods, a collaborative approach between the public and private
sectors, housing choice and affordability, improved quality of urban design of the public
realm, showcasing of sustainability and quality design in new developments and precincts,
and improved transport options for the ACT.
Land Supply
The 2016-17 to 2019-20 Indicative Land Release Program includes residential, commercial,
industrial and community releases, which are an important part of the ACT Government’s
economic, social and environmental strategic planning framework.
The Indicative Land Release Program and targets are developed by the Chief Minister,
Treasury and Economic Development Directorate (CMTEDD) in consultation with the LDA
and other directorates. The Indicative Land Release Program is then considered and
approved by the Government.
2016-17 Budget Statements 251 Land Development Agency
The program aims to meet overall market demand and provide a range of land choices while
allowing for a variety of housing types, and different scales of commercial and industrial
development.
The publication of the program provides guidance on the Government’s land release
intentions to property developers, builders, homeowners, investors, community
organisations and the business and industry sectors.
The LDA is responsible for the delivery of the Indicative Land Release Program and manages
the release of land for residential, commercial, industrial and community purposes by:
• releasing serviced sites from its own greenfield estates, urban renewal and infill
locations;
• partnering with others in joint venture developments;
• releasing large parcels of raw land directly to the private sector (englobo releases); and
• facilitating the preparedness of land for consideration by Cabinet as Direct Sales.
Risks
There are a number of risks that may impact the LDA’s ability to achieve its objectives and
key deliverables.
Regulatory Risks
• The availability of an adequate supply of appropriately zoned residential, commercial,
industrial and community land, together with concept plans and timely approvals to
enable development activity to take place within planned timeframes.
• Unforseen delays in approvals and clearances from relevant directorates and
Commonwealth agencies that would result in slippage in the achievement of the
Indicative Land Release Program and associated revenue, including Asset Recycling
Initiative (ARI) releases, which are also subject to a range of dependencies such as
advance delivery of replacement housing stock.
• Changes in Commonwealth or other regulatory requirements may add uncertainty or
increase costs for LDA activities impacting on delivery timeframes.
• Current legislation relating to stratum subdivision/community title may limit some
complex mixed use high quality urban renewal precincts.
• Delays in statutory planning approvals by the Commonwealth relating to projects within
designated land.
2016-17 Budget Statements 252 Land Development Agency
Industry Capacity and Performance Risks
• Inability of the LDA to attract, recruit and retain a sufficient number of skilled staff.
• Delays in the planning and timely delivery by other directorates and utilities providers of
the necessary budget funded capital works infrastructure in order to support the land
release program.
• Increases in costs due to contract performance or extension of time (e.g. from sustained
wet weather) impacting on development schedules and the financial performance of
projects, resulting in lower or delayed forecast returns to the Government.
• Failure to meet the requirements of the Work Health and Safety Act 2011.
• The adequacy or otherwise of industry capacity and skills availability to provide
necessary services to deliver land servicing and broader capital works activities.
Market Risks
• Volatility in market demand for land as a result of the economic environment.
• Whether the Government’s Indicative Land Release Program can be absorbed by the
market at the forecasted revenue.
• Possible increases in land servicing and construction costs.
Stakeholder Risks
• Whether the sales revenue and land release targets can be achieved.
• Addressing diverse and/or conflicting community views on development.
2016-17 Strategies
The key strategies for 2016-17 that the LDA will employ to achieve its outcomes and
effectively manage risks include:
• collaborating with government agencies to establish an inventory of environmentally
cleared, planned, release ready and serviced land;
• undertaking strategic acquisition of land to assist in establishing an inventory of land for
future development purposes;
• providing detailed technical advice to CMTEDD to assist in resolving land development
issues with the Commonwealth;
• working with government agencies and the community to implement strategies for key
government development priorities in the city centre, town centres, major transport
corridors and urban infill areas;
2016-17 Budget Statements 253 Land Development Agency
• effectively engaging with local communities, industry associations, special interest
groups and the broader ACT community to ensure relevant interests are identified and
considered in land release activities;
• pursuing initiatives to deliver affordable housing, consistent with the Affordable Housing
Action Plan;
• pursuing initiatives that make active travel (walking and cycling) part of Canberrans'
daily lives, consistent with the Active Travel Framework;
• encouraging viable and liveable communities by providing a variety of block types and
public spaces to suit the needs of residents and surrounding communities;
• delivering community development programs to encourage involvement and support for
community building; and
• contributing to the redevelopment of the Capital Metro Corridor and the
implementation of the City to the Lake project.
2016-17 Budget Statements 254 Land Development Agency
Estimated Employment Level and Employment Profile
Table 1: Estimated Employment Level
2014-15
Actual Outcome
2015-16
Budget
2015-16
Estimated
Outcome
2016-17
Budget
Staffing (FTE) 87.7 95 97.41 127.0
1
Note(s):
1. The increase of staffing numbers from the 2015-16 Budget to the 2016-17 Budget reflects a combination of factors
including the realignment of the agency’s organisational structure largely due to a number of Administrative
Arrangement changes since 1 July 2014, resulting in an increase in functional responsibilities including urban renewal
projects.
Table 2: 2016-17 Employment Profile
Classification
Male Female Vacant Total1
Executive 7 3 0 10
IM/S 32 1 0 0 1
IO5/42 13 8 9 30
IO32 9 2 0 11
IO22 0 3 1 4
IO12 1 0 0 1
ASO2/3/4 3 5 2 10
ASO52 1 5 5 11
ASO62 3 7 3 13
SOG C2 3 6 5 14
SOG A/B2 5 9 8 22
Total 46 48 333
127
Note(s):
1. The total includes staff that have been seconded to the Asbestos Response Taskforce, Public Housing Renewal
Taskforce and other ACT Government Directorates, and Executives with dual reporting roles, that is, the Deputy Chief
Executive Officer, the Executive Director, Urban Renewal, and the Executive Director, Sales, Marketing and Property
Management.
2. The Classifications listed represent changed classification structure titles. Staffing numbers are for both
Administrative classifications and their equivalent Infrastructure Officer classifications.
3. The realignment of the agency’s organisational structure is expected to be finalised by 30 June 2016. The vacancies
reflect the establishment of an in-house corporate HR and governance function, and new positions resulting from the
realignment of the LDA undertaken due to increased responsibilities.
2016-17 Budget Statements 255 Land Development Agency
Key Performance Indicators for 2016-17 to 2019-20
The following table outlines LDA’s performance measures for profitability, liquidity and