Reports GOV.46 Page 17 28 April 2015 PLANNING PROPOSAL - "BELLS LIVING" AND "BELLS GREEN" LOT 431 DP755234, HN 121-133 THE SCENIC ROAD & LOT 42 DP1165641, HN 79 MAITLAND BAY DRIVE KILLCARE HEIGHTS BARKER RYAN STEWART (IR 20543606) EXECUTIVE SUMMARY The Planning Proposal originally lodged requested the two lots adjoining the existing Bells tourist development at Killcare Heights be rezoned to R2 Low Density Residential. The two lots are located to the immediate east and north of the existing resort. The planning proposal request was to allow complementary and ancillary “lifestyle”-type development as an adjunct with the lots being used for permanent occupancy, but this could entail short term rental accommodation, use as weekenders etc, that would have an element of “tourism” use, similar to a number of other dwellings in the Killcare/Wagstaffe area. Bells Resort and surrounding lands on the Killcare Heights Plateau, are predominately zoned E4 Environmental Living. A statutory minimum lot size of 4 hectares applies. The scale of the development proposed for the site is essentially mid to large residential lots, and the applicant will be seeking to subdivide the land to lot sizes ranging from 600m2 to 2100m2. When averaged within the overall site will be approximately 1400m2 for Bells Green (which has smaller clustered lots and a greater amount of “community” space, with the exception of two larger lots within the bushland fronting The Scenic Road) and 950m2 for Bells Living, which is a more conventional “large lot” residential subdivision will less “community” space. Through discussion withe the applicant it is no longer proposed to rezone the parcel of land on which the existing Bells Resort is located to R2 Low Density Residential, but rather retain the existing E4 Environmental Living zone with site specific controls added to Schedule1 to enable development on this land parcel as requested by the planning proposal. This amended proposal has the advantage of retaining the E4 zoning which reflects the characteristics of the land. The other factor relevant in the consideration of the planning proposal is the form of subdivision of the use. The lodged Planning Proposal originally sought torrens titled subdivision, with a rezoning to R2 Low Density Residential zone, which would enable the erection of a dwelling house on each lot. However through the assessment process, the applicant has communicated a willingness to have the Planning Proposal amended to a community title subdivision to facilitate the development given this amendment still achieves the overall goal of the applicant to provide environmental living housing. Under the existing planning framework (LEP and DCP), the development of the land as a tourist and visitor accommodation development is permissible. Strata subdivision below the minimum lot size in the LEP (ie 4 ha) has only been made permissible under Amendment 13 to LEP 2014, effective from 27 March 2014, under Clause 4.1A Minimum subdivision lot sizes for strata plans in certain rural, residential, recreation and environmental protection zones, of LEP 2014. Therefore, a tourist and visitor development is permissible and development can include strata titling of the units that could be sold to individual owners. The manner in which the land is proposed to be developed, with communal areas of open space, informal roads, areas of vegetation warranting protection, requirements for retardation basins etc is appropriate as a community titled subdivision. Following the form of subdivision is the issue of the occupancy of the land. The application seeks the permanent occupancy of the dwellings, including other occupancy forms such as short term rental accommodation (limited to under 3 months), use as weekenders, or for permanent occupancy, but within a non-traditional low density residential development that aligns to Bells which maintains the Environmental Living Zone. Tourist and visitor accommodation is currently permissible under the LEP, and can be strata titled under existing controls. However, a future Planning Proposal would be required in any event to “convert” approved tourist and visitor accommodation units to permanent dwellings. The approach to managing this issue on its merits now, when the impacts of permanent occupancy can be contemplated, rather than in the future when essentially “the same” physical buildings and site works could be constructed (subject to DA approval) is preferred. Reports Page 18 28 April 2015 Addressing these issues at this stage is a more transparent and accountable approach and provides Council the opportunity to fully consider the applicant’s original request for an R2 zone, the issue of permanent occupancy, consider the best methods to further the proposal, etc rather than if the buildings were already approved/constructed as tourist and visitor accommodation units and then a future Planning Proposal lodged to provide for their permanent occupancy or subdivision method other than strata titling. Restrictions on permanent versus “temporary” tourist type/weekender occupancy, or tourist and visitor accommodation units could also be imposed, however would be difficult to manage and enforce given the unknown intentions of future owners. Being different forms of “development”, different assessment considerations would also apply, particularly as “tourist and visitor accommodation” is a Special Fire Protection development for the purposes of the Rural Fires Act, 1997. There may also be different construction requirements between dwelling houses and tourist and visitor accommodation, in relation to the provision of car parking, private landscaping, Building Code of Australia requirements, etc. There needs to be sufficient scope for flexibility of use of structures as permanent dwelling houses, short term rental accommodation (as a use of a dwelling), renting out as a tourist unit associated with Bells, or use as a weekender. There is also a need to limit the number of dwellings on the land, whatever their intended use. The best means to establish this statutory framework would be to list the lots in Schedule 1 “Additional Permitted Uses” of Gosford Local Environmental Plan, to allow community title subdivision, and specify the quantum number of dwellings that can be erected on each lot. This would provide the appropriate statutory framework to enable the development to proceed, to allow flexibility of use of the dwellings for weekenders, permanent occupancy, etc together with retaining the integrity of the overall E4 zoning in this location. This would ensure an appropriate scale of development, ensuring environmental protection, and overall integration of the development through a community title subdivision, whilst allowing flexibility of use of dwellings. This would also recognise the uniqueness of the situation, remove complications in relation to future subdivision, resolve management imposts/expectations for Council for services, infrastructure and maintenance of “public” infrastructure internal to the development, protect the overall integrity of the E4 zone as it relates to the Plateau, retain suitable environmental protection and provide an outcome that meets both Council’s and the applicant’s development expectations. The proposed development is unique and can be substantiated from a landuse planning perspective. It is not considered that the dwelling houses would be conventional dwellings in the sense of a new urban release area type of development for “family” type accommodation, due to lower density of development, high architectural specifications, high “buy in” costs, relative uniqueness of community titles subdivision where landscaping features, community gardens etc are owned by the residents, location of the land and integration with Bells resort. A detailed assessment of issues associated with the planning proposal is contained within Attachment B. A comprehensive suite of DCP provisions would be prepared to supplement the statutory amendment. If undertaken in the manner recommended, the Planning Proposal would allow a development that leverages off the positive benefits of Bells, in terms of land management, advocacy of sustainable development, alternative residential accommodation within a sensitive community, additional tourism opportunities, alternate source of weekender accommodation, economic generation, local employment and value-adding to the unique qualities of the Killcare peninsula. The management of occupancy for the tourist component/use of dwellings could be managed by Bells. It is acknowledged however that it would be appropriate to consider the operation of this and the community title scheme in the coming stage of the development process. Specifying the quantum number of dwelling houses that could be erected, and its subdivision by way of a community title system, would further differentiate the development from conventional residential development and ensure the environmental integrity of the land is maintained. The recommendation of this report is to approve the planning proposal to proceed to Gateway. BACKGROUND The wider Killcare peninsula area is characterised by its isolated nature, proximity to extensive National Parks and beaches and estuaries, scenic qualities of state and regional significance and low key, relatively informal residential areas and limited local facilities. The plateau is bounded by Maitland Bay Drive, Wards Hill Road and The Scenic Road, at the top of the Killcare/Bouddi Peninsula. It is characterised by gently sloping land, significant tracts of remnant vegetation providing connectivity to national parks and COSS lands, native and introduced landscape/vegetative screening, with dwelling houses generally being used for larger rural residential type living in large cleared areas. Reports 28 April 2015 There has been pressure on a number of E4 lands to allow further subdivision, mostly for smaller rural residential lots due to their favourable proximity to the coast, high amenity, demand for rural residential living and large development returns for relatively low development costs if subdivided into smaller rural residential “7(c2)” type lots. A recent determination in the Land and Environment Court in relation to a two lot subdivision of 179, The Scenic Road, zoned 7(c3)/now E4 land and located some 350 to 550 metres from the land was refused by the Land and Environment Court (Coastplan Consulting vs Gosford City Council File reference 10194 of 2013, 23 May 2013). In the determination of this case, the importance of the Plateau area for tourist developments, retaining large lots of sufficient area to accommodate this form of development, the area’s sensitive environmental values and its desired future character, were ratified by the Court and the case dismissed. Rezoning to a residential zone could be precedential for other areas zoned for tourist developments to allow either greater rural residential or low density residential subdivisions. It could also be precedential for rezoning of rural small holdings areas (existing 7(c2)/proposed E3) to allow urban development. This is currently outside of any current strategic context, however Council will be progressing a review of fringe areas as part of its overall strategic works program within Sustainable City and Corporate Planning. The proposal The concept as proposed is not “conventional” residential development, but a “lifestyle” type for residential accommodation, that may incorporate some short term holiday letting, weekender use, options of owners to rent out dwellings for tourist use associated with Bells etc, together with permanent occupancy. The design provides for a total of approximately 50 lots. The lots are to be developed in a non-conventional manner to integrate with the amenity and appeal of the resort. It would provide additional compatible “alternate” residential accommodation, provide greater opportunities to retain environmental values, scenic quality and amenity, with urban design, landscape and architectural merit. The success of the proposal is contingent upon maintaining the high environmental values and character of the land, and implementing sustainable practices in relation to development, water cycle management and living options. The main impetus for the proposal is to allow smaller subdivision and permanent residential/lifestyle opportunities (which would have opportunities for tourist uses of the buildings). Smaller lot subdivision is only permissible for permitted developments (ie tourist and visitor accommodation) through a strata titling scheme. Strata titling was only recently permitted under Amendment 13 to LEP 2014. The applicant is not amenable to strata titling, and not amendable to a restriction on occupancy between dwelling houses vs tourist and visitor accommodation units. Dwelling houses and tourist and visitor accommodation units are differently defined uses. The introduction of a “split” between dwelling houses and tourist and visitor accommodation would be difficult to manage and regulate from a practical perspective, and it is not known what proportion would be reasonable to apply, particularly as this would depend on individual owners intentions, need for flexibility (eg rent out for tourists if it is not the primary place of residence as short term rental accommodation), etc. The overall development is considered meritorious, however, as it seeks to develop a high quality development that respects the integrity of the E4 zone in relation to protecting the environment and providing opportunities for lifestyle living and tourist uses, albeit if not strictly “tourist and visitor accommodation”. Council needs to be satisfied that it does not provide a precedent for further smaller lot subdivision for residential use alone, nor create servicing and maintenance imposts for Council. Conventional torrens title subdivision associated with traditional R2 zoned development would be complicated and with a number easements, rights of carriageway etc, also create considerable on-going issues for Council maintenance, residents’ expectation as to servicing, access to services and facilities etc. Through negotiations with the applicant, they are amenable to a community title subdivision, however this is currently not permitted by the LEP as lots would be created below the 4 ha minimum lot size. Hence a Planning Proposal is required. Conventional urban development reflective of the R2 zone is not supported from a landuse planning perspective due to environmental and scenic value of the land. If the land were to be rezoned to R2, an “englobo” lot production of approximately 72 lots could be feasible, with a conventional “urban release area” type subdivision. This would have a significant precedential effect for the rezoning of other E4 plateau lands. The primary concern if the land were rezoned to R2 is that the lots could be sold separately either as “development” lot, or individual lots within an “urban release” type subdivision and developed for conventional urban release area residential development, and the precedential effect for other E4 land on the Killcare plateau. Conventional residential development is not suitable in this location due to its isolation, state and regional significance from a visual and scenic perspective, high environmental values (including wildlife corridor values), proximity to and relationship with extensive areas of National Park, poor road access and distance to conventional urban centres. Reports 28 April 2015 The E4 area also has several key areas of ecological connectivity between National Parks/reserves, located generally along the central drainage line and along The Scenic Road frontage, with cleared areas interspersed within these ecological areas. It is important to be able to retain these high environmental values, and respect the regional setting of the land. After meetings with the applicant, manager and owner, to further clarify the type of development proposed and its permissibility within existing zonings, and on-going discussions with the applicant, it has been agreed to amend the proposal. The proposal is not for tourist and visitor accommodation, but dwelling houses, to be separately titled, however to be integrated and designed to be complementary to the resort. The applicant/ owners are amenable to retaining the E4 zone, however allow a smaller minimum lot size though a community title scheme. This removes management imposts for Council that would be associated with conventional residential zoning and torrens titling subdivision. The proposal entails two components: Bells Green, on Lot 431 DP755234, 121-133 The Scenic Road, with a more clustered area for building envelopes and significant proportions of the land being used for landscaping/ community gardens etc, and Bells Living, on Lot 42 DP 1165641Maitland Bay Drive, which is more representative of detached larger lot semi-rural residential subdivision. Integration is proposed with a commonality of landscaping (featuring both exotic and native species), integrated access arrangements, use of resort facilities by owners/occupiers of the Bells Green and Living components, adoption of sustainable development principles and integrated water cycle management including flood retardation. Individual dwellings would however be separately owned, but could be rented out for holiday rentals and managed by the resort. It is acknowledged however that it would be appropriate to consider the operation of this and the community title scheme in the coming stage of the development process. One solution to allow the development to proceed and alleviate on-going management concerns/ responsibilities of Council and expectations of future owners of individual lots in relation to servicing, etc would be to allow a community title subdivision and specifying the number of dwelling houses that could be developed for each “parent” lot. This solution is reflected in the recommendation of this report. Purpose of report This report discusses merits for Council's consideration and decision of whether or not to prepare a Planning Proposal (PP), which, if supported by Department of Environment and Planning would result in an amendment to Gosford LEP 2014, pursuant to Section 55 EP&AA. Aim of proposal - to facilitate the development of land to the immediate north and east of Bells Resort at Killcare Heights for non-conventional “residential lifestyle” development complementary to the amenity, architectural/urban design character of the exiting Bells resort and complementary to the wider environmental setting of the Killcare peninsula. It is also proposed to maximise synergies with the existing resort, however allow smaller lot subdivision, though community title subdivision. The applicant is seeking 100% permanent occupancy of the dwellings/tourist units. Although it would be desirable to recommend a “split” between permanent and tourist uses, there are difficulties in differentiating between use of dwelling houses for permanent occupancy, weekender use, short term rental accommodation, or renting out as conventional “tourist units” associated with Bells. There is also a need for flexibility of use depending on the desires of individual owners. It also creates assessment complications (ie two different forms of landuse) and on-going management and landuse regulation if a split between uses is nominated. The specific aim of this Planning Proposal, as amended and recommended to Council, is: To list Lot 431 DP755234, HN 121-133 The Scenic Road (Bells Green) and Lot 42 DP1165641, HN 79 Maitland Bay Drive, (Bells Living) Killcare Heights in Schedule 1 of Gosford LEP 2014 to enable a community title subdivision, with a quantum number of dwellings/tourist and visitor accommodation units to be erected of 20 and 30 respectively on each lot; to list “horticulture” in Schedule 1 of LEP 2014. This is to allow locally grown, seasonal produce to be used in Manfredi@Bells restaurant as a permissible “stand alone” use on Lot 431 DP755234, HN 121-133 The applicant to provide ffuurther details to Council in relation to the exppected use of dwelling houses for permaanent occupancy, weekender use, short term hhooliday letting, and tourist unit rental asssocociated with Bells, prior to the submission off the Planning Proposal to the Departmentent of Planning and Environment, to ensure thaatt the integrity of the E4 zone as it relatess to low impact tourist developments is maintainneed. Reports 28 April 2015 Locality Map Subject Lots Bells Resort Application Received / amamended – 21 November 2014. Agreed amamendment to proposal on 21 January 2015 to retain E4 zone with reduced minimumm lot size and allow a torrens title subdivision. Environmental Planning InInstrument & Zone E4 Environmental Living ununder Gosford Local Environmental Plan 2014 (GGLEP 2014) Area – Lot 431 DP755234, 234, 121-133 The Scenic Road - 3.222 hecctares, Lot 42 DP1165641, 79 Maitland Bay Drive 2.834 hectares – total 6.056 hectarees Site – the land is located at Killcare Heights and forms part of plateau area surrounded by National Parks, waterways and the low density, relatively informal residential areas on the Killcare/Wagstaffe Peninsula. ASSESSMENT OF ISSUES Pre-Planning Proposal meeting – no formal pre-planning meeting was held with the applicant and Council staff. However, since lodgement meetings, site inspections, and on-going discussions have been undertaken with the applicant and owner to determine whether the proposal could be accommodated within the existing planning framework, as a permissible use (tourist and visitor accommodation) in the current E4 zone. The development sought is smaller, more residentially scaled lots, which are now proposed to be community titled, and to offer a range of “lifestyle” options that include permanent occupancy, use as weekenders, possible rental for short term holiday letting, etc. Following assessment it is now clear that the proposed development could be achieved by retaining the E4 zoning however listing the land in Schedule 1 “Additional Permitted Uses” of LEP 2014, to allow community title subdivision with a quantum number of dwellings. Although it may be desirable to consider a “split” between permanent residential occupancy and tourist use of dwellings to, the reality is, however, that because of the “lifestyle” nature of the development, and its setting in an area where a high percentage of existing conventional dwelling houses are used for short term rental accommodation, weekenders etc, and synergies with Bells, that full “conventional urban release style” residential occupancy would be unlikely to occur. It is acknowledged however that it would be appropriate to consider the appropriate means by which the community title scheme achieves the objectives of Environmental Living Zone in the next stage of the planning process. It is recommended that Council achieve this during the Gateway phase. Reports 28 April 2015 Applicant's Submission Bells Green is to be located on the eastern immediately adjoining the existing Bells resort lot fronting The Scenic Road and comprises the following: • • Two larger lots at the front of the site to retain the majority of the vegetative buffer at the front of the site (note there may be environmental/ecological issues associated with this component which would require further investigation) 18 residential-scaled lots ranging from approximately 620m and 800m2 located within cleared areas, and clustered around existing significant exotic landscaping features, having access to communal green space (open space, community gardens, landscaped areas and walkways, etc); • Access road from The Scenic Road which will then link into existing Bells internal access ways and also provide emergency alternative access through the Bells Living component to the west Bells Living is to be located to the immediate north of the Bells resort and is located on 79 Maitland Bay Drive. It comprises the following features: Approximately 30 lots of between 600m2 and 2100m2 with access to be via way of an extension of • internal access road across the drainage line/upper Mudflat Creek, with lots orientated off one central access road. Lots will be large enough to provide for urban “farming” opportunities on the individual lots themselves rather than in a centralised community garden as proposed in Bells Green; • Access of Maitland Bay Drive is proposed only for emergency purposes; Both the components will be subject to detailed design and are not intended to accommodate conventional urban “greenfields” lot subdivision. Urban release area type subdivisions are characterised by unregulated residential dwelling houses/potential project home building designs, inconsistent building materials and colours, mix of landscaping, conventional public roads, kerb, guttering and servicing systems. The applicant now seeks, and Council supports, to facilitate the development by way of Community title subdivision, which is not currently permissible due to lot size limitations of Clause 4.1AA and the Community Land Development Act, 1989, which requires that no lot, other than a “community association lot” (or “parent”) lot be smaller than the minimum lot size specified under the LEP (ie 4 ha). The applicant notes that tourist and visitor accommodation is currently a permissible use on the land, and this could be at a higher density development yield than that sought under the Planning Proposal. Restrictions on floor space for tourist units of 0.15:1 that applied to the former 7(c3) zone was not brought into LEP 2014. The applicant has proposed, and Council would require, Development Control Plan provisions to ensure that development: • is designed so that new dwellings are compatible with the coastal environment and high architectural specification of the existing resort, including appropriate building height, materials and bulk, streetscape and setbacks and private open space; • public domain strategy that will address general amenity, design, sustainability, common horticultural plots/community gardens and character/amenity of public areas; • • Landscape design, recommended plantings and other proposed landscape elements, Promotion of housing types and design appropriate to the lot size, orientation, slope and shape, • Is adequately serviced and considers a range of matters to further support the development in the manner proposed. There are other requirements that Council would consider necessary in relation to Development Control Plan provisions specific to this site. These may be also be refined through consultation with government agencies and the Gateway Determination. This should ensure that at the time of subdivision and development applications for individual dwellings, there are no insurmountable impediments or unforeseen circumstances that have not been canvassed as part of the planning proposal process. One component of this could be demonstrable evidence from the applicant that there is opportunity for tourist/weekender use of the dwellings to support the integrity of the E4 zone.
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