The proposed contribution of $800,000, or $20,000 per year over 20 years, represents just 0.57 percent of the project’s capital investment value.
Federation Council is seeking an alternate contribution of $1,402,986 as part of a renegotiated planning agreement given the expected impact on local infrastructure and environment during construction.
Unlike local development applications, State Significant Developments do not automatically attract local infrastructure contributions; as a result, a planning agreement is the principal mechanism for Council to secure funding towards infrastructure.
Flowpower’s proposed BESS on Whitehead St, a State Significant Development, is estimated to cost $140.3M and brings with it severe impacts as detailed in the Environmental Impact Statement (EIS), particularly during the construction and decommissioning phases.
General manager Adrian Butler said negotiating the agreement was the first step to say Council would not accept Flowpower’s lower rate.
“We want to make sure the impacts of this project really hit,” Mr Butler said.
“What we're looking for here is one percent of the total investment value as the infrastructure contribution.
“There are plenty of stories around where development doesn't always meet and cover the impacts.
“If we don't recommend an agreement in a Memorandum of Understanding, the State Government has the power then to impose conditions they feel covers those aspects.”
According to the EIS, the BESS development is expected to impact transport and road infrastructure during its approximately 18-month construction period, as well as disturbing the local environment and requiring extensive civil works for preparation.
While there is no prescribed statutory contribution rate for SSDs, Council considers one percent of the capital investment value a reasonable starting point to mitigate such impacts.
The motion to renegotiate the planning agreement was carried unanimously.
