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The Department of Planning and Environment is working towards creating well-connected, well-serviced communities to accommodate Sydney’s growing population. The Special Infrastructure Contribution (SIC) framework is one of many initiatives in place to help ensure the demands of the growing population are met in a timely manner.

 

The proposed SIC for St Leonards and Crows Nest is designed to support delivery of the infrastructure identified in the draft 2036 plan.

A Special Infrastructure Contribution is paid by developers to share the cost of delivering the infrastructure required to support growing communities such as schools, State and regional roads, regional open space, emergency and health facilities, and some public transport infrastructure.
Contributions are collected for new developments within a defined boundary called the Special Contributions Area (SCA). SICs are currently being prepared and proposed for all Planned Precincts and Growth Areas across Sydney.
A SIC is based on strategic planning work for the precinct or growth area. The infrastructure schedule identifies the key pieces of infrastructure that can be delivered by SIC funding, and the rate is the per-dwelling or per-lot portion of the total infrastructure cost that must be paid by developers. 
The Department also considers development feasibility in setting a SIC charge so that the SIC will not impact housing supply. The SIC framework will be reviewed regularly with the rate subject to indexation.

Planning for growth in St Leonards and Crows Nest forms part of the Government’s broader strategic planning for Sydney. The Greater Sydney Commission has recognised St Leonards and Crows Nest as both a Strategic Centre for Sydney and a key Health and Education Precinct. There are also public transport improvements coming to the area with a new Metro station opening in Crows Nest. To complement these strategic plans we’ve been working on a draft:

  • Local Character Statement 
  • St Leonards and Crows Nest 2036 plan
  • Green Plan
  • Special Infrastructure Contribution (SIC)

The Local Character Statement and Green Plan set the vision for the precinct, guiding the draft plan to best meet the community's needs into the future while retaining the elements that make it a special place now. The role of the Special Infrastructure Contribution is to fund key projects identified in the plan, providing certainty about delivering infrastructure that will support new jobs, homes and services as the community grows.

 

Feedback on the draft planning package will be considered before the SIC is finalised.

The SIC paid by developers will contribute to the cost of delivering infrastructure to support new homes across the St Leonards and Crows Nest precinct, estimated to be $113.6 million, including:

  • Open space - $57.6 million
  • Regional pedestrian and cycling facilities - $27.6 million
  • Education - $22 million
  • Roads, intersections and bridges - $4.7 million
  • Planning and delivery - $1.7 million

The proposed SIC for St Leonards and Crows Nest will apply to the Special Contribution Area (view the map in this document).

 

A rate of $15,100 is proposed for each additional dwelling within the contribution area.

The proposed St Leonards and Crows Nest SIC will contribute $113.6 million of funding for the items detailed in the proposed Infrastructure Schedule, as shown in the table and map below. Other State infrastructure identified in the Draft 2036 Plan and not funded by the SIC will be the responsibility of the relevant agency to fund and deliver.
The Department will work with delivery agencies and Lane Cove, North Sydney and Willoughby Councils to coordinate delivery of priority infrastructure in time with demand.

 

Infrastructure item   SIC funding
 Roads  $4,736,000
 R1 - Signalised pedestrian crossing: Pacific Highway at Portview Road  $858,000
 R2 - Signalised pedestrian improvement: Pacific Highway at Reserve Road  $343,000
 R3 - Signalised pedestrian improvement: Pacific Highway at Herbert Street  $433,000
 R4 - Signalised pedestrian improvement: Pacific Highway at Christie Street  $1,557,000
 R5 - Signalised intersection improvement: Albany Street at Pacific Highway  $172,000
 R6 - Signalised intersection improvement: Pacific Highway at Oxley Street  $515,000
 R7 - Signalised pedestrian improvements: Pacific Highway, Falcon Street and Willoughby Road  $858,000
 Education  $21,984,000
 A funding allocation has been made based on the projected increase in the student population at local primary and high schools. The Department of Planning will work with the Department of Education and Training to determine how funds will be used to meet growing demand on schools.
 Open space  $57,659,000
 OS1 - North linear park: Herbert Street bridge to Chandos Street (land acquistion only)  $28,058,000
 OS2 - South linear park: Lithgow Street  $1,701,000
 OS3 - Hume Street park expansion  $25,900,000
 OS4 - Gore Hill regional playground  $2,000,000
 Regional pedestrian and cycling improvements  $27,570,000
 P1 - Pedestrian and cycle link: Herbert Street to Chandos Street  $12,514,000
 P2 - Cycle connection: Talus reserve to Naremburn Park  $1,952,000
 P3 - Pedestrian and cycle connection: Pacific Highway to River Road via south linear park  $1,308,000
 P4 - Pedestrian and cycle connection: Canberra Avenue  $3,182,000
 P5 - Pedestrian and cycle improvements: Willoughby Road  $668,000
 P6 - Pedestrian and cycle improvements: Sergeants Lane/Christie Street  $191,000
 P7 - Cycle improvements: Oxley Street  $1,185,000
 P8 - Cycle improvements: Shirley Road  $309,000
 P9 - Cycle improvements: River Road  $2,824,000
 P10 - Pedestrian and cycle improvements: Chandos Street  $3,437,000
 Planning and delivery costs  $1,679,000
  A portion of SIC funding is used to cover the planning and ongoing reviews of the SIC framework.
 Other- funded by Voluntary Planning Agreement
 C1 - Community Arts Centre Funded via Voluntary Planning Agreement

The proposed approach for the St Leonards Cows Nest SIC is currently on exhibition as part of the draft planning package for St Leonards and Crows Nest. 
The package includes a:

  • Draft Local Character Statement
  • Draft Green Plan Vision
  • Draft St Leonards and Crows Nest 2036 plan
  • Draft Special Infrastructure Contribution
  • Draft Crows Nest Metro Site Rezoning Report

You are welcome to provide feedback until 3 December 2018. Feedback collected on the draft planning package will be considered and used to update the St Leonards and Crows Nest SIC. The proposed SIC may be adjusted in response to changes to the draft plan.

The rezoning of land, particularly to higher density residential, means a significant increase in the demand for new and upgraded infrastructure across St Leonards and Crows Nest. A coordinated approach is essential for funding the delivery of new and upgraded infrastructure in line with population growth.

The SIC will ensure infrastructure such as schools, open space, road upgrades and regional cycling and pedestrian links will be coordinated and delivered at the same pace as new homes and jobs, to support the growing community’s needs.

The SIC framework has many benefits for the community, landowners, councils and developers:

  • Provides certainty to the community that the infrastructure identified in the precinct plan will be funded and delivered;
  • Offers transparency about the collection and distribution of funds for required infrastructure;
  • Streamlines the planning process;
  • Ensures the timely delivery of infrastructure in line with community expectations and rate of growth;
  • Provides certainty for business, councils and community that infrastructure is funded and will be provided alongside or soon after new developments; and 
  • Enables developers to contribute funding towards infrastructure that provides a direct benefit to the community and adds value to the development.

Anyone who is developing and delivering new residential dwellings within the St Leonards and Crows Nest Special Contribution Area will pay a Special Infrastructure Contribution to the state government. Tenants and small businesses will not be affected by the SIC.

Exemptions are proposed for development of social housing, seniors housing or affordable housing carried out by or on behalf of a community housing provider. The contribution does not apply to employment or commercial land, except for development in mixed-use zones where residential accommodation is provided.

Special Infrastructure Contributions fund state and regional infrastructure which means a SIC may only be determined by the Minister for Planning.
Section 7.11 and 7.12 contributions plans are made by local government authorities to assist them with funding local infrastructure items within a local government area. This funding allows the delivery of local facilities and services such as local roads, local open space and community facilities such as libraries. These services are typically the responsibility of local government. 
Infrastructure contained in a local contributions plan will be different to that contained in a SIC infrastructure list.

The SIC is paid by developers to the state government during the development application (DA) process. Alternatively, developers may seek approval from the Minister for Planning to dedicate land for required infrastructure or build a piece of required infrastructure, instead of making a financial contribution. The delivery of infrastructure instead of a levy payment is known as a works-in-kind agreement.

 

Where a voluntary planning agreement (VPA) has been previously negotiated with a landowner or developer for the provision of state infrastructure, the Department will take this into account and developers will not be charged under both mechanisms (i.e. will not be double-charged).

Once a SIC has been determined it will replace the need for developers to negotiate VPAs for development within the Special Contribution Area. This offers transparency about what infrastructure projects are being funded and certainty about the contribution amount.

The Ministerial Determination is the legal document that allows a Special Infrastructure Contribution to be levied on development within a contribution area under The Environmental Planning and Assessment Act 1979. An individual Determination must be made for each area where a SIC is proposed, signed by the Minister for Planning and published in the Government Gazette before it can be applied. 
Once the Determination is made the Minister will issue a direction to local councils to impose the contribution as a condition of consent on all resident development applications.

Page last updated: 22/02/2019