The University of Wollongong has engaged its lawyers and a planning consultancy firm to get out of paying a council development fee as it builds a new on-campus IGA supermarket.
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The university has lodged an application with Wollongong City Council to have a one per cent developer fee imposed on the supermarket removed, as it says the IGA does not carry the commercial status that had been given to it by the council.
Known as Section 94A contributions, the fees in contention are applied to developers across the city. They are used by the council to offset the cost of public facilities, like roads and paths.
The university has previously been exempt from paying the levy, as it is developing public infrastructure which has educational benefits. The fee exemption has applied for other commercial university developments – including student accommodation towers under construction along Northfields Avenue which will be run by private investors. However when approving the university’s plans to include an IGA in its UniCentre building, the council said it did not comply with the definition of “community infrastructure” and was “of a commercial nature… the use of which is not directly related or necessary to the education activities of the institution”.
“A partial development contribution is recommended to be levied on the development, which will only [be] one per cent of the development cost of the IGA supermarket”,” the council said.
Documents lodged with council say the university accepted the condition due to “time constraints” but now wishes to have the levy removed.
In a letter to the council, UOW’s facilities management director Bruce Flint said the IGA development would “provide enhanced social and support services for UOW staff and students critical to the ongoing operation”. He also highlighted the “substantial contributions” of the university.
“On a local community level UOW has built a range of ancillary-use facilities on the Wollongong Campus, including food and drink establishments, sporting and recreational facilities, libraries, student accommodation and the like,” he said.
“These facilities are essential for the student experience and are often operated at subsidised costs. The facilities are available for use by the local community… As such, they reduce the need for council to provide equivalent infrastructure for the local community.”