Developer who failed to meet plans asks for money back
A DEVELOPER who failed to uphold its end of a contract will not be returned a $100,000 bank guarantee it provided to local council
Sunglide, the developer of Eagle Rise Estate at Lowood, was required to build a park, as part of a development application approval dating back to October 2005.
Despite communication from council in 2010 and 2017, the park was never built by the developer.
Instead, Somerset Regional Council constructed a $193,784 park during the 2018-2019 financial year, meeting the development requirements.
But the developer that failed to build the park, has this month requested Somerset Regional Council release the funds on “compassionate grounds”.
In a letter to council, the developer stated the company had adhered to all council agreements and requirements.
Mayor Graeme Lehmann said the developer failed to meet the requirements.
“It was council who ultimately constructed the park however at a cost of around $193,000, which is obviously more than $100,000 covered by the bank guarantee,” Cr Lehmann said.
“Council did not agree that the bank guarantee should be released to the developer for compassionate reasons, and we will now move to call up the $100,000.”
The DA required the developer to install a park with a suitably-sized shelter shed, park play furniture and other features.