Legal threat to Dapto hospital project

Planning authorities have launched legal action against the developer of a $315 million hospital precinct near Dapto after a dispute over a dirt stockpile.The Planning Department has begun proceedings in the Land and Environment Court against La Vie Developments, the company behind the Illawarra International Health Precinct, after attempts to negotiate with developer Brett Gooley failed.It will seek court orders for the removal of a dirt stockpile and retaining wall close to homes at Penrose.Neighbours claim the dirt stockpile is causing dust and run-off problems and has blocked their escarpment views.Excavation on the 15-year project began in February this year. At its centre are a helipad, a $38 million surgical centre and a 352-bed private hospital, the biggest of its kind in NSW.Dr Gooley has previously denied breaking any rules and claimed a delay would put the project at serious risk.In July, he told the Mercury: “if [a legal case] was protracted and we lost, obviously it would close the project down.”The department alleges Dr Gooley ignored numerous requests to stop stockpiling material, leaving it with “no option but to go to court.”It said the legal action would allow construction work to continue on the first stage of the project, a specialist surgical centre. Deputy Director-General Richard Pearson said the department recognised the potential economic and social value of the development to the Illawarra, but must ensure it is constructed in accordance with its approval conditions. “The stockpile has been causing significant dust and visual impacts for nearby residents as well as sediment run-off in the storm water,’’ he said.A spokesman for the precinct said La Vie Developments was “surprised” by the legal action.“The department appear[s] to have launched legal action prior to evaluating in detail our stockpile plans and discussing the implementation of those plans with us,” the spokesman said.“We have not been stockpiling on the site now for some time.”The Planning Department claims the work has also breached a string of other approval conditions and has not ruled out further legal action.Closely watching developments will be the proponents of two other Illawarra private hospital projects also vying to get off the ground.The University of Wollongong will apply for funds towards its $300 million medical precinct in the next round of the federal Health and Hospital Fund.Approval has also been granted for a $114 million, 156-bed facility in west Crown St, backed by surgeons Arthur Stanton and Andrew Malouf.Dr Gooley has previously said that three new hospitals would be an over-reaction to the region’s bed shortage, predicting it would “lead to the economic failure of all three”.