Refund results from 'impecuniosity'

The developer of the North Pearl estate in Umina Beach has escaped a requirement to construct a pedestrian bridge, due to council's "impecuniosity".

Gosford Council will now refund $75,000 to Bruce Kerr Pty Ltd, as well as accumulated interest.

When originally approving the subdivision, the council had required a road to be constructed, across Ettymalong Creek, joining Lace Ave in North Pearl estate with Myola Rd.

This was deferred until the final stage of the subdivision, at which time the developer asked that the condition be waived.

Council decided at that time that the road bridge could be replaced with a pedestrian bridge.

The issue went to the Land and Environment Court in January 2006, where the developer was ordered to contribute $75,000 to the cost of a cyclist and pedestrian bridge to be built within three years.

The council was required to fund the balance of the cost of construction and to refund the contribution should the bridge not be built within the three-year period.

Gosford Council was told last week that council staff had been unable to obtain funding to cover the cost of a pedestrian bridge.

Representatives of the developer told council that they were unwilling to extend the timeframe beyond the end of January next year.

"We note that council's decision not to proceed with the construction of a pedestrian and cyclist bridge has been based on its impecunious circumstances," the letter to council stated.

The developer did not wish to pay additional funds "to assist council's impecuniosity" or meet with council representatives.

"Council has enjoyed our client's $75,000 since 24 January, 2006, and its return with its accumulated interest would be appreciated at council's earliest convenience."

In a report to council, council's director of city services Mr Stephen Glen stated that the cost of placing the matter before the Land and Environment Court prior to January 29 next year would be around $10,000.

"However, there is no guarantee of receiving a hearing date and without the support of the developer, there is little chance of either a greater payment being received, or an extension of time given to undertake the work," the report stated.

Even so, Crs Peter Freewater and Terri Latella moved that legal action be taken to extend the time, requiring an environmental assessment of the area and seeking community support to request Bruce Kerr Pty Ltd reconsider his decision.

The motion was lost.

Council then resolved to follow Mr Glen's recommendation to abandon the construction of the bridge and refund the developer $75,000 plus interest.

Council agenda CIT.46, 2 Dec 2008