Property Development Study Guide - Module 03

Development Controls and the Public Roles

INTRODUCTION
Module 03 deals especially with development control, both officially through government
and unofficially through direct public action, planning and development application, public
private partnerships in development, and sustainable development.

Government development control has been with us a long time as part of so-called
“planning” system. Technically, “planning” is the method by which zoning and land use
policies (that say what the developer may build where) come into being. Most jurisdictions
invite the public (including developers) to participate in the political process that leads to
particular desired built environments and the formulation of laws to control development.
Developers should participate responsibly in such debates, but these are not the subject of
Module 03.

Development control refers to the implementation and interpretation of the laws that are
the outcome of the planning debates; development control is of immediate concern to
someone contemplating a development and takes the developer into the bureaucratic, legal
and political environments. In recent decades there has been an increasing role for direct
public action on development – the development control laws may permit a development,
but that will not prevent people lying down in front of the bulldozers, and sometimes
winning. It is a very foolish developer indeed who does not take this possibility into account
in the market research phase that determines whether a development is even worth
considering.

Public private partnerships in property development, whatever one may think about their
current international proliferation, are a fact of life and the source of some very large
infrastructure developments. The text devotes a chapter to them. Sustainable
development has become much more than a concern of the “greenies”, to which the
development industry pays some lip service; it has become very respectable and
mainstream.

It should be noted that in this module we are talking about planning, development controls,
other public influences, and sustainable development. We are not really addressing
building regulations, except to the extent that they might have something to say about
sustainable development. Building regulations are very important, of course, because they
largely deal with life safety. When you read in the newspapers about disastrous loss of life
in building fires and earthquakes, there is almost inevitably reference to lack of modern
building regulations or lack of their enforcement. However, we do not deal with them here
because they are of more immediate concern to architects, engineers and construction
contractors. You should include on your development team only those professionals who
have a reputation for understanding and adhering to building regulations, because, in most
countries, you won’t be allowed to occupy your development unless it does comply.

Most of the study guide contains materials from the text book, Property Council of
Australia’s Sustainable Development Guide, summary from The Commercial

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Project Manager (Turner 1995) and Real Estate Development Manual (Alenick 1990).
Students are required to read the text book in order to have a better comprehension.
Relevant materials from other sources would also be included and be addressed
accordingly.

The textbook looks at the United State’s systems. However, the module is not about
memorising any one particular jurisdiction’s planning and development control laws,
regulations and customs. It is more about understanding the nature of planning and
development control and being exposed to some rules and practices that are fairly common.

The following areas are covered in this study guide:

• roles of public
• development controls
• planning and development application
• public private partnership
• sustainable development
• environmental issues in property
• environmental impact assessment

DISCUSSION
Although government statues and court decisions provide the legal framework for land
ownership and contractual understanding, inevitably in most countries the public sector has
always been a strong force in establishing the rules of the development game. Today’s
developers can expect heightened public scrutiny and stricter guidance of the development
approval process to avoid, or at least mitigate the impacts of development.

The only way to enhance the quality of the finished product is for the developer to view and
treat the public sector as an active participant on the development team, and to take into
account the attitudes of the community. Developers must anticipate public needs and
desires for private development, and seek to mesh the interests of private development
with public goals and requirements.

ROLES OF PUBLIC
The following section will discuss about the roles of government in affecting development
process and the development industry as:
• regulator of private development
• provider of needed facilities

The Public Sector as Regulator

The government’s duties are to protect the health, safety and general welfare of citizens.
Developers usually come in contact with local government regulations early in stage two of
the development process, even before acquiring a site. Along the way, developers have to
deal with public expectations for development that are framed in comprehensive plans and
zoning ordinance, and satisfy public standards and requirements that are expressed in
subdivision regulations and building codes (Miles et al 2007, p. 300). Besides that,

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developers may find that their projects are affected by other government policies that may
postpone and restrict development.

The main stays of local governments’ regulatory programs are comprehensive plans, zoning
ordinance, subdivision regulations and capital improvement programs. A comprehensive
plan explains ways and directions in which an area should develop over a 10- to 20-year
period. Normally a comprehensive plan consists of written development goals and policies,
supplemented by maps that provide guidelines for local officials as they make decisions
about the quality, location and amount of future development in the area.

Zoning ordinances are the most widely used form of land use regulation. They provide
requirements and standards for permitted uses of land and buildings, the height and size of
buildings, building setback, the sizes of lots and yards around buildings, the supply of car
parks, the size and types of fences, etc.

Subdivision regulations control over subdivisions of land into lots for sale and development
purpose. They spell out requirements and standards regarding the size and shape of lots,
the design and construction of streets, water and sewer lines and other public facilities,
provision of open space, and other concerns such as protecting environmental features. It is
therefore very important for you to enquire with the local council on the possibility and
their requirements of subdivision if you have a big piece of site.

Capital improvement programs provide a construction schedule for planned infrastructure

improvements in a community. They also identify the expected sources of fund to pay for
the improvements. It is essential for a developer to be aware of such capital improvement
programs as they affect the area’s development potential.

Note that a request for changes or special procedures usually exposes a project to closer
scrutiny by public officials and the general public and often creates opportunities for public
officials to require additional contributions of amenities and infrastructure. Developers
increasingly find that they must spend almost as much time coming to terms with
neighbours or special interest groups as with the public officials charged with project
approvals. In many instances, developers must employ consultants and prepare special
studies to respond to questions and demands from such groups.

The Public Sector as Provider of Needed Facilities

Normally government plays an important role in planning, financing, and constructing the
capital facilities that provide essential services for the public. However, it is important to
note that the private sector is also increasingly heavily involved in providing capital facilities
in most countries. For example, sometimes, public facilities and services such as toll roads,
electricity and water supply and distributions are owned and/or operated by private
companies or semi-public authorities.

In addition, property developers are usually required to plan, finance, and build roads and
other infrastructure necessary to support proposed development within – and frequently
outside – project sites. The particular ways those responsibilities are shared have changed
over time and vary to some extent among specific types of facilities.

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SOME DEVELOPMENT CONTROL ISSUES
In South Australia, the Department of Planning and Local Government is the body
responsible for strategic land use planning for the State Government. In land use planning,
zoning determines the legally permitted land use of a piece of land. In other words, it
decides what can and cannot be built for a piece of land. For example, you can build a
residential building on a piece of land zoned for residential use but you cannot build a hotel
if the land is zoned for industrial usage.

In Adelaide, you can obtain zoning information from the development plan of your area by
visiting the website of the South Australia Planning,
[Link]
+and+development+applications/Development+plans+and+their+use.
If you do not live in Adelaide you should try to find your local equivalent, if any.

In addition to the land use of the subject site, it is also important for you to investigate the
allowable land use of the adjoining land as this might give you the opportunity for
amalgamation. That means you may choose to buy the adjoining land of similar land use to
make your site more sizable for a particular development.

Besides that, it is also essential to find out the adjoining land uses to see how they may
enhance or reduce the value of your potential development. For example, if you have a
school that is right next to the site, it may decrease the selling price of the proposed
residential development because of the noise and increased traffic.

Also, it is worth investigating whether there is any possibility of rezoning a site. This can be
done by checking with the planning officer of the local council on the likelihood of obtaining
variances.

There are some issues of development control that are fairly technical, but with which the
aspiring development consultant should be reasonably conversant:

Plot ratios
These are known as Floor Space Ratios in some places and probably have some other names
too, but the concept is quite common. They are the ratio of the gross building floor area to
the site area. If we had a site area of 1,000 square metres and a plot ratio of 1:1 we could,
all other restrictions aside, do the following:

• Cover the entire site with a single-level building with a “footprint” of 1,000 square
metres
• Cover half the site with a two-level building of 500 square metres per level
• Cover half the site with a three-level building consisting of a podium of 500 square
metres and two levels of 250 square metres each
• Cover a quarter of the site with a four-level building of 250 square metres per level
• Cover a tenth of the site with a 10-storey building of 100 square metres per level. In
practical terms, this is of course ridiculous.

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If the plot ratio were 2:1, we could build a two-level building of 1,000 square metres per
floor over the entire site, etc. Sometimes there are both maximum and minimum plot ratios
specified, providing a range in which the developer must work, and sometimes the ratio is a
given.

Most local governments that use plot ratios to control development density also specify a
height restriction. Sometimes this is done to ensure that there is uniformity of scale of
buildings, but there might also be a height restriction because of aviation safety regulations
or overlooking or overshadowing issues. The plot ratio must be read in conjunction with the
height restriction to determine the maximum development allowed.

However, note that in certain countries, the floor area allowable refers to net lettable area,
not gross floor area as stated earlier.

Bonus plot ratios

Sometimes development control regulations use plot ratios as an incentive to developers to
provide some desired amenity. In other words, that development must exceed the
development requirements set by the governing authority. For example, if the
development provides a public walkway through the site, there might be an additional 0.5:1
added to the plot ratio, allowing the developer to build a larger development on the site.

This of course assumes that a larger development is more profitable. That is sometimes not
the case; the higher the building the greater the cost per square metre to build, so if land
values are not very high, a high-rise building might not make much sense, especially if
potential occupants are nervous about occupying higher floors. The message is to conduct
the market research and feasibility study properly and not let planning incentives blind you
to economic reality.

Transferable plot ratios

These are also known as Transferable Development Rights or TDRs. They started out as a
way of providing some compensation to building owners whose buildings were heritage
listed and who could not therefore develop the site to its maximum plot ratio. The idea
works like this:

• Assume that the plot ratio of the precinct in which the site is located (Precinct A) is
5:1.

• Assume that the subject site has a heritage listed building (which the owner has to
preserve by law); the heritage building represents a plot ratio of 2:1

• Further assume that there is a vacant site whose precinct’s (Precinct B) basic plot
ratio is 7:1 and whose owner wants to develop it to the maximum possible extent

• The local government authority includes in its development control regulations the
right for heritage building owners in Precinct A to sell their unused plot ratio (in this
case 3:1), and for land owners in Precinct B to buy a certain amount of bonus plot
ratio (e.g. 4:1, making the total plot ratio 11:1)

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 • It may be in the Precinct B land owner’s interest to buy the 3:1 surplus plot ratio
from the heritage building site owner (and perhaps an extra 1:1 from another site
owner). The Precinct B owner is willing to pay for the right to an increased size of
development, while the heritage site owner can consider the purchase price for the
unused plot ratio as some compensation for being “stuck” with a heritage site that
they can’t develop.

The system started out as a scheme for compensating owners of heritage-listed buildings,
but has been expanded in some instances to enable owners who just don’t want to further
develop their sites to sell their excess plot ratio. An example might be a strip shopping
centre whose value is all in ground floor shopping, and where it would not make sense to
build a higher building because no one would rent the upper floors. The site owner could
permanently relinquish development rights above a 1:1 plot ratio and get some money for
them. They would still be able to demolish the existing improvements in the future and
construct a modern replacement single-level shopping centre.

Note that there are some interesting features to what looks like a sensible scheme:

• It is a way for governments to compensate owners of heritage-listed buildings

without putting their hands into the public purse

• The system depends on having sites where buying additional plot ratio is permitted,
as well as sites where selling excess plot ratio is permitted

• It is possible for governments to “fiddle” plot ratios to its advantage. For example, a
government could give high plot ratios to its existing buildings that it had no
intention of developing, and lower the plot ratios on privately-owned sites, subject
to the right for the private owners to buy excess plot ratios from others. Guess who
would have just happen to have a lot of excess plot ratio for sale?

• Above all, the system depends on there being a market demand for the excess plot
ratio. If there is not much development happening, or if there are plenty of sites
that are suitable for development with their basic plot ratio, there won’t be any
buyers and there won’t be a market – this is pretty much the situation that has
existed in the Adelaide CBD since the Adelaide City Council introduced the scheme in
the 1980s.

Overlooking
This refers mainly to buildings of more than one level, and has become more important as
privacy issues have taken centre stage. Development control regulations will sometimes
prevent buildings having windows through which the occupants can see into, for example, a
neighbour’s backyard. They may forbid windows altogether on that side of the building, or
require that overlooking windows be translucent, but not transparent. This is sometimes
tested by planners using a cherry-picker on the development site to see what the upper
floor view would potentially be.

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Overshadowing
Planners, social commentators, residents and workers have begun to notice the ‘concrete
canyon’ effect of much city development, where sunlight never reaches street level because
of all the high-rise buildings. This is particularly noticeable in recreation areas such as parks
and school playgrounds. Overshadowing regulations simply require that developers
demonstrate by using sun-angle plots that their building will not cast a shadow over a
particular piece of land or building. Compliance with overshadowing regulations may
require a shorter building, or setbacks of upper floors.

Car parking issues

You have not been paying attention if you are unaware of the cars vs. public transport in
cities controversy. At one level, this is the classic individual rights vs. public good or private
vs. public provision argument that is fought at all levels of politics on virtually all issues. Yet
it does have some very practical implications for developers. The basic premise is that
building occupants and visitors like to be able to park their cars on or near the site. There is
endless market research to demonstrate that, and it is easy to observe. Therefore, it is in
the developer’s financial interest to provide as many car parking as possible in the
development, because that attracts tenants.

On the other hand, it is argued, if “open-slather” car parking is permitted, more cars will be
brought into the city (at the expense of public transport use), more and bigger roads will
need to be constructed (at great public cost), one of the biggest contributors to greenhouse
gases will be encouraged and the local city environment will be detrimentally effected by
enormous traffic jams. Therefore, it is often in the community’s perceived interest to
restrict the amount of on-site car-parking provided. There lies the basis of a very serious
argument.

More recently, local authorities have tended to accept the argument that keeping cars out
altogether is not good for the economic health of the city, and have tried to encourage
commuters (who drive in, park their cars all day without using them, then drive home) to
use public transport, while making parking more attractive for short-term visitors, such as
shoppers, and for city workers who use their cars during the day. This provides some clues
as to how developers may structure their car-parking proposals.

When considering car parking, the developer should also look at existing parking to see
whether partnership arrangements are possible. However, there are situations, especially
in suburban shopping strips, where local government wants more car parking (to prevent
residential streets being parked out) and developers want to provide less, because it takes
up space that could be devoted to retail. The argument that visitors can use existing car
parking suffers from the obvious problem that if everyone wants to use “someone else’s”
parking, there won’t be any parking provided. These situations are arenas for gladiatorial
combat not only between developer and local authority, but also between developer and
developer.

Private provision of public facilities

Public Private Partnerships are covered comprehensively in Chapter 14 of your text.
However, there are also situations where, as a condition of approval of a development that

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does not quite conform to the planning rules, government requires the developer to provide
local public amenities at the developer’s expense. This might be a public open space, street
furniture, a pedestrian shortcut, a road or even something larger. This is a matter of
negotiation and seeing whether the trade-off is worthwhile from the developer’s viewpoint.

Sometimes the developer takes the initiative. There was a regional shopping centre in
Sydney, whose developer provided a vehicle bridge over a nearby river, to provide access to
the potential shoppers who lived on the other side of the river. It was definitely in the
developer’s economic interest to provide this piece of economic infrastructure. Another
example is a housing developer in Malaysia who built a two-tier flyer-over to join its project
to a highway to ensure that the traffic to the housing scheme is smooth and congestion
free.

Of course, it is very common these days for the developer of a residential or industrial
subdivision to be required to provide open space for public parks, to construct sealed roads,
kerbs, footpaths and drainage, and to install underground reticulation of power, water, gas,
sewerage etc. within the boundaries of the subdivision. There are even cases where the
developer is required to pay for the expansion of utility capacity rendered necessary by the
new subdivision. Such infrastructure provisions were previously made by governments
using borrowed funds; thus some of the cost burden fell on future generations who would
use the infrastructure. Now the infrastructure cost is all borne up-front by the initial users –
the buyers of the subdivision sites. It might be argued that some of the cost is recovered
when the property is resold, but that depends on accepting that value is dependent on cost!

Heritage conservation issues

Preservation of the built environment heritage has always been an issue for communities,
but the notion of requiring private owners to preserve old buildings and to prevent them
being developed is relatively recent. The main issue is one of private property rights versus
community interests (again). The private owner would argue that, if the community wants
the building preserved, then the community, through its governments, should acquire it at
fair market value and preserve it. The community, on the other hand, would argue that it,
through government, gives the right to develop and therefore has the right to take it away
in the community’s interests – and besides, it doesn’t have the money to buy all that
property.

The second issue is the question of what buildings are worth preserving. All levels of
government in Australia have tended to set up heritage departments, whose job it is to
assess worthwhile buildings for heritage listing. This tends to lead some fairly long bows
being drawn when it comes to heritage preservation judgements.

The third issue is the form that preservation of heritage items takes. Sometimes an entire
building must be preserved, right down to the heritage paint colours and the furniture,
because of its rarity, its condition or its historical associations. At other times, it might just
be the exterior appearance that is important, either for itself or because of its fit into the
context of surrounding buildings. The latter has led to the concept of facadism, in which the
heritage street frontage of the old building is maintained, while a brand new office tower
rises behind it, either set back or not. There are many examples, both good and bad, in

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Sydney, while there are some reasonable examples on the Southern side of Grenfell Street
in Adelaide.

Sometimes heritage buildings can have an indirect effect on a development’s design. This
occurs when approval is being sought for a development adjacent or fairly near to a heritage
item or items. Development approval may be contingent upon the new building being
“sympathetic” to the appearance of the heritage item.

Complying with heritage preservation orders in a way that enhances, or does not detract
too much from, the viability of the project, takes a good deal of imagination on the part of
the developer and the architect. Sometimes, the heritage item can become a feature. In
any event, it is best to approach the issue in a positive frame of mind, rather than to re-fight
battles that were long ago lost by others.

Land Management Agreement

Land management agreement is a binding agreement between a landowner and the
government regarding the use and management of his/her land. Therefore it is essential to
find out whether there is any land management agreement that spells out what you are
supposed to do and not to do with the land. For example, there might be an agreement that
you cannot change the building design and must have the front façade painted in white.
Normally this has to do with development approval and issues on conservation and
heritage. This agreement must be registered on the land title to be enforceable.

Public opinion versus marketability

Module 2 will have given you the distinct impression that the property should meet the
requirements of the potential user, to the exclusion of other considerations. But remember
Module 1 and the concept of collective users of land and its developments.

While the community may be seen to impose its will through democratically elected
governments implementing development control regulations, it is not uncommon for the
regulations to lag behind community feeling, or to be out of step with the thinking of
sections of the community. That is where the pressure groups, both official and ad hoc,
come into being. They might be a general environmental group, such as the Australian
Conservation Foundation, a group of local residents who get together to oppose a
development, or an individual, and any variation of these. Motives are as varied as the
groups – from altruistic to anti-competitive. These people are voters and prepared to use
any political power they might have. Most systems also provide for them to have a say, and
even to take development matters to court. Importantly, the objectors to a development
may have a good point.

Module 02’s reading mentions the necessity to include the possibility of objections in the
market research, and to aim marketing at getting the local community onside from the
beginning. That is wise counsel. Of course, the developer will not win over the objectors
who are acting as a stalking horse for vested competing interests, some people actually are
completely unreasonable, and the merits of some things, such as the colour or design of a
building, are in the eye of the beholder, so it may well be wise to assess the legal avenues
and budget for the cost of using them. However, it is definitely better to treat possible

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community objectors as legitimate participants in the process, rather than as a lower form
of life with which you would not lower yourself to communicate. As the saying goes, “You
catch more flies with honey…”.

PLANNING AND DEVELOPMENT APPLICATION

In order to regulate planning, all councils have their own development plans (or structure
plan) to control land use and development within their jurisdictions. Normally a
development plan consists of state and local planning policies, zonings and other
provisions that can affect how development can take place. Any proposal to develop will
require development approval, this include demolish, construct, add or alter a building; land
rezoning; change the use of a property; any external alteration (and in some cases also
internal alterations) of a listed heritage item; and divide or alter the boundary of an
allotment.

Depending on the types of applications, a development approval includes:

i. Planning Approval (or known as Development Plan Consent);
ii. Building Approval
iii. Land Division Consent

Before you submit any application to the local council, it is advisable to make approach the
authority for informal advice, for instance whether a development approval is required for
your development. It is also recommended to talk to your neighbours first before you lodge
any application as this may save time if changes have to be made to the plans to address
their concerns. Also, it is wise to get professional advice from the outset as this will help you
to develop your concept to meet the council’s expectations.

Public notification
The Development Act 1993 requires that some development proposals are subject to public
notification. The Development Regulations 2008 also require the Council to refer some
applications to government agencies for advice.

The council will decide whether notice will be given to the owners or occupiers of the
adjoining properties or other affected person. This process allows people who are likely to
be affected to comment on the proposal before a decision is made. Advertising can be in a
newspaper, a notice on the proposed site, a notice in the government gazette (issued by the
state government), or through direct mail.

Third-party Objections
Objections are normally lodged during the advertising period and these will be taken into
consideration when the council makes its decision. In many instances, council encourages
the objectors and the developer to meet to address the concerns. The developer may need
to make changes to the plan after the negotiations.

Planning Assessment
The main objective of planning assessment is to assess the impact of development
according to the policies, principles, zonings in the council’s development plan, as well as

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the legislative framework of Development Act 1993. For instance, an assessment includes
(but not limited to):

• Adjoining buildings, properties and people (e.g. overshadowing, overlooking, and

visual dominance).
• The size, shape, orientation and layout of new allotments.
• Impacts to heritage buildings – this involves building work to a heritage building as
well as works adjacent to a heritage building.
• Impact to the character of existing buildings in an existing street or locality.
• Appropriateness of certain land uses, dependant on the relevant zoning.

During the assessment process, the council planning officer prepares a report describing the
proposal against the above criteria, comments from other relevant departments, and
objections from the public (if any). Then a recommendation will be made whether or not a
planning approval should be granted. Depending on the application, the planning officer
may need to refer the matter to the council for a decision.

You will receive a copy of the approval notice with the endorsed plan if council approves
your application. Normally the approval is subject to conditions that must be met. Most
approvals expire two years from the date of issue.
If your application is unsuccessful, the grounds for refusal will be listed on the notice. You
have the right to appeal within certain period if your allocation is refused.
For Adelaide City Council, for most planning applications (excluding land division) there is a
statutory time frame of 8 weeks, within which Council must make a decision.

Building Assessment
A building approval is normally required after obtaining a planning approval. This involves
an appraisal of the design of buildings to ensure they are compliant with a national set of
uniform technical provisions that enable the achievement of acceptable standards of
structural adequacy, safety, health and amenity and energy efficiency. This assessment is
undertaken against the relevant provisions of the Building Code of Australia and the
respective state’s Housing Code.

Rezoning Application
Rezoning allows land to be used in a different way and normally it will give higher value to
the land after rezoning. Rezoning a property is a long process; it can involve not only the
local council and the affected public, but higher government department and environmental
authorities.

The process of rezoning can be very political and at times very sensitive for the surrounding
community. Thus a developer must be prepared to deal with possible objections from the
adjacent landowners and local community; also, attitudes of the councillors or politicians
towards growth and change.

If a developer intends to purchase a piece of land for rezoning, it is necessary to first contact
the local town planning department to verify its current zoning and future planning policies.
The developer should also talk to the local community, environmentalists and political

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groups. This is important to let them have a good understanding of the proposal and allows
the developer to address their concerns in working out its proposal.

In some cases, rezoning can only be initiated by the local council. Thus, the developer
should first engage a town-planning consultant to prepare a professional submission to give
the application its best chance.

Importantly, a detailed submission should include: strategic basis and valid reason to change
the zoning, and effect of the proposed change on the adjoining land use and the
community. In addition, the application should also include environmental impact studies,
impact on the traffic, how the proposed development will blend into the surrounding
neighbourhood.

PUBLIC PRIVATE PARTNERSHIP

Public private partnership dramatically redefines the traditional roles of the public and
private sectors in the development process. In such partnership arrangement, joint
participation by the public and private sectors is a prerequisite to developing a project in
which each partner share risks and benefits.

Students are advised to read Chapter 14 of the text to have a better understanding on
public private partnership.

SUSTAINABLE DEVELOPMENT
The notion of sustainable development is now an imperative for the property industry, and
it fits well into a discussion of private and public sector roles. Sustainable development is
defined as development that meets the needs of the present without compromising the
ability of future generations to meet their own needs (World Commission on Environment
and Development 1987). It calls for a triple bottom line approach to business, balancing
environmental, social and economic accountability.

Increasing pressure to limit greenhouse gas emissions, conserve natural resources and
minimise waste and pollution impacts has provoked action at all levels of government
throughout Australia. We can also anticipate that regulatory bodies and community
pressure will raise the bar, requiring more commitment, reporting and compliance with
regard to the principles of sustainable development.

The evidence that attention to the environment can enhance the business case is
increasingly compelling. Many businesses and developments have demonstrated the
commercial benefits of embracing this opportunity. Broader industry considerations of
sustainability are also affecting the type of buildings tenants are leasing. The following is
adapted from the Property Council of Australia’s Sustainable Development Guide, which is
obtainable from the PCA, and copies of which are in the UniSA library.

"Fully integrated architecture and engineering solutions are the key to doing
environmentally responsible buildings. This is what we must do as professionals to provide
leadership for the construction industry. Working apart as we have done for decades has
yielded energy consuming, inefficient, inhospitable and unhealthy buildings. Working

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together to fully integrate our ideas must be our mandate for the future.” Robert Fox,
Senior Principal, Fox and Fowle Architects, New York

Design guidelines set sustainable development goals and parameters for the project team,
incorporating issues concerned with:
• siting (eg. improved open space and public access),
• building design (eg. exploit passive design),
• product and material selection (eg. using local materials),
• systems integration and operation (eg. integrating smoke exhaust requirements with
mechanical ventilation systems),
• commissioning,
• maintenance during occupation (to ensure nominated environmental targets are
achieved),
• energy and water resources (eg. halve usage),
• waste, and
• design for longevity, flexibility and reuse.

Material selection and construction techniques can impact on areas of the project, including:
• cost of waste management during construction as well as end of life and demolition,
• opportunities to conserve, reuse, recycle or store for later use,
• construction, fabrication and fixing methods that facilitate ease of construction and
ease of deconstruction,
• indoor air quality from toxic off-gassing, selection of mechanical ventilation systems
and use of natural ventilation,
• the cost of construction and demolition, and
• the efficiency of the heating and cooling systems.
Sustainable development considerations need to be incorporated into initial design
decisions. Some strategies and decisions that could be considered are discussed below:

Pre-design and briefing

• Assemble a team capable of delivering the sustainable development aims and
objectives of the project.
• Develop a vision and goals that are achievable within the scope of the project.
• Set priorities such as water conservation or energy efficiency.
• Establish a budget to meet the goals.
• Develop partnerships with energy organisations and utility providers.
• Develop a project schedule that allows for the aims and objectives to evolve without
time penalties.
• Keep abreast of current laws, regulations, standards, benchmarks and best practice
market expectations.
• Consider refurbishment or reuse of existing building stock.
• Liaise with local communities and other major stakeholders about the development.
This creates a relationship bank that the project may need to draw from later.

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Site selection
Potential development sites need to be chosen carefully. While a careful design process can
resolve sensitive site issues (such as proximity to park lands, wetlands, habitat that contains
threatened species and virgin land), there can be extensive hidden costs and time delays
with these sites. These often arise from community concerns. Decisions need to consider
the following criteria (especially for greenfield sites):

• position of surrounding structures,

• potential development on surrounding sites and their impact on your site,
• good access to public transport (ideally less than a five minute walk),
• working with natural landscape formations (avoid cut and fill) and minimising impact
on water cycle and ecological systems (including salinity and acid sulphate soils),
• proximity to ecologically and culturally significant areas,
• proximity to other amenities,
• previous land use, risk of contamination and cost of remediation, and
• vulnerability to climate change, wind and flood potential (which impact on insurance
risk).

Site design
Passive solar design utilises climatic conditions and weather systems to naturally light,
ventilate, heat and cool a building. Maximising the principles of passive solar design will
reduce energy costs and improve occupant comfort. Some key initiatives include:

• orientation of the development (ideally north-south not east-west),

• maximising solar gain and minimising solar shadows,
• designing the facade to limit heating and cooling loads and thus energy use,
• maximising opportunities for natural ventilation and minimising constraints of air
movements,
• minimising hard-surfaced utility corridors for noise, heat loading and ground water
recharge,
• retaining existing land forms and vegetation,
• water sensitive design (reusing grey water, ground water recharge and pollution
control), and
• considering community needs.

Schematic design
• Adopt passive design initiatives such as natural light and ventilation, access to views
and stairs for internal circulation.
• Research technologies, products and materials that assist in improving the
environmental performance of a building.
• Use computer analysis programs to test design options.
• Benchmark objectives with environmental rating tools.
• Engage and involve the community and stakeholders.

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Design development
• Develop, test and select options to meet the sustainable development objectives.
• Confirm partnerships with government agencies and suppliers.
• Continue community and stakeholder liaison.

Construction documents
• Document materials and systems reinforcing environmental aims and objectives in
specifications and drawings.
• Check cost in relation to budget.
• Avoid waste generation and cost of disposal through careful specification (eg.
custom versus standard sizes).

The Building Code of Australia features new energy-efficiency requirements, including

passive measures such as orientation as well as active measures. Other areas the Code deals
with include air movement, building fabric, solar treatment, building sealing techniques,
lighting and heating, ventilation and air conditioning systems as well as water conservation,
hot water, lifts and elevators.

ENVIRONMENTAL ISSUES IN PROPERTY DEVELOPMENT

Sustainable development is defined as “development that meets the needs of the present
without compromising the ability of future generations to meet their own needs” (World
Commission on Environment and Development). In other words, sustainability has to
integrate social and economic dimensions which we have to take into consideration the
quality of living environment for the present and future generations such as living in a safe
and peaceful environment. Sustainable development should not be merely meeting basic
needs, but it should also improve the quality of the living environment.

In property development there are two types of environmental issues that must be
addressed:

• environmental conditions that can affect the value of the property which cause
unexpected financial liability to the property owners, or restrict the development
potential of the property.

This includes any potential toxic contamination of the site, presence of wetland etc.
All these should be carefully evaluated before acquiring a potential development
site. Developers and consultants need to be aware of the current regulations and
requirements on environmental approvals in their development planning.

The presence of hazardous materials in soil or ground water can create serious
financial liability to a property developer. Other examples, such as the presence of
newly-mapped wetlands or designated coastal zone management area, can result in
environmental constraint on the type and extent of development.

• environmental approvals or permits that are required in order to proceed with

planned development

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In addition to the above concerns, developers also have to pay attention to the
environmental effects of the property construction and operation, which include energy,
construction waste, pollution, transport, noise, land use and disposal, and internal building
environment (Wilkinson & Reed 2008). Developers also need to consider life cycle analysis
of projects. These are the production of materials and components used in construction
projects, and the disposal of materials at the end of the project life when demolition takes
place, such as recycling and reuse of construction materials.

ENVIRONMENTAL IMPACT ASSESSMENT

As the environmental problems brought about by property development continue to grow,
legislation and public pressure require property developers to analyse and control the
impact of their projects may have on the environment. To do this, it is necessary to
understand the various aspects of the environment which can be affected, and to consider
systematically how project activities will affect each of them. This process is called
environmental impact assessment. The objective is we should try to reduce the adverse
effect of property development on the environment.

There are quite a number of definitions of environment. For the environmentalists, it means
the natural environment made up of air, earth, water and the myriad of creatures and
organisms that occupy the natural world. For the planning authority, it means the social
environment, the community with all its interdependent human groups. For the economists,
it may mean the economic environment upon which the nation GNP is dependent.

In recent years, global warming and ozone layer depletion have prompted international
accords aimed at controlling pollution of the global environment. Currently, ‘environment’
tends to mean the air, water, and land that humans view as important element of their
quality of life.

It is increasingly the case that without proper care and regard for the environment,
development project will not be granted approval by the authority. The environmental
impact assessment procedure therefore becomes an essential tool to assist in obtaining the
necessary planning permission for a project. Note that not all projects require
environmental impact assessment report, such guidelines differ from one place to another.

Environmental impact assessment (EIA) is a technique by which information about the

environmental effects of a project is collected by the developer so that it can be taken into
consideration by the planning authority in forming a judgement on whether the
development should go ahead. Early environmental analysis will indicate ways in which the
project can be modified to eliminate or reduce adverse effects perhaps through better
environment options or an alternative process.

It also provides a disciplined format in which to describe the project’s environmental effects,
a format which identifies problems and enables consultation and modifications to take place
in the atmosphere of objective and comprehensive evaluation. It sets the scene for better
decision making for the developer, the local pressure group and the planning authority.

Page 16 of 19
The Environment Protection Authority (EPA) is South Australia’s leading environmental
regulator, responsible for the protection of air and water quality, and the control of
pollution, waste, noise and radiation.

When to prepare EIA

In general, EIA is required for any project that will make a significant impact on the
environment by virtue of the project nature, size or location. The local authority may have
its own guidelines on this requirement.

What format
There is no specific form of EIA report. Its preparation should be a collaborative exercise
involving the project manager, the planning authority, statutory consultative bodies and
other interested parties. The aim is to provide as systematic and objective an account as is
possible of the significant environmental effects of the project.

EIA should start at site selection process so that the environmental effects or merits of
alternative sites and processes can be evaluated before any commitment is made. Involving
local authorities and interest groups early will gain access to local knowledge, local
conditions and local feelings about the project. The scope of EIA should be agreed with the
planning authority before beginning its preparation.

Contents
An EIA statement must contain the following:
• A description of the development including information about the site, the design,
size, scale, etc.
• Data needed to identify and assess the main effects on the environment
• A description of the likely significant effects on the environment explained by
reference to its impact on human being, flora, fauna, soil, water, air, climate, the
landscape, the interaction between the foregoing, material assets, the cultural
heritage, etc.
• Where significant effects are identified, a description of measures to avoid, reduce
or remedy them.
• A summary in non-technical terms of the above information for the layman.

OTHER DEVELOPMENT-RELATED ENVIRONMENTAL ASSESSMENT TOOLS

In addition to EIA, there are many other assessment tools available and developers need to
identify which one suits them best. Some tools focus on single issue only, such as energy
efficiency, and some cover a broader range of issues (e.g. GREEN STAR, BREEAM). These
tools provide a rating that benchmark the project’s sustainability, environmental impact or
energy efficiency, depending on the types of tools used. The ratings can then be used to
promote and market the project to potential buyers and tenants. Examples of some of the
assessment tools used are BREEAM, NABERS, Green Star, Office Scorer, and Envest 2.

Page 17 of 19
READING FOR MODULE 03

Text book (5th Edition):

Chapter 7 (The Role of the Regulatory Sector),and

Chapter 8 (Decision Makers and Stakeholders)

SA Planning Portal (Planning Reforms - [Link]

The following journal articles are available in the Course eReader.

Curley, J (Ed) 2003, ‘Sustainability & Green Design’, ISFE Executive Updates, June Issue

Ide, L & Maitland, J 2003, ‘Aldinga Arts Eco-Village – showcasing the possibilities for
residential development’, in FM planning and Infrastructure, vol.11, no.6, pp.42-43.

Larsen, C. 2003, ‘Chaos Theory’, Property Australia, vol.17, no. 7, pp. 32-33.

Larsen, C 2003, ‘The Development Diplomat’, Property Australia, vol. 17, no. 11, pp. 20-21

Ryder, T. 2003, ‘Keeping it Simple’, Property Australia, vol.18, no.1, pp. 16-18

Sayce, S, Ellison, L & Smith, J 2004, ‘Incorporating sustainability in commercial property

appraisal: Evidence from the UK’, Australian Property Journal, Vol.38, No.3, pp.226-233

Smith, MR 1996, ‘Ecologically Accountable Building’, Urban Land, June Issue, pp. 50-52, 65

Link to SA Planning Legislation –

[Link]
+and+development+applications/Development+plans+and+their+use

REFERENCE

Miles, ME, Berens, G, Eppli MJ & Weiss, MA 2007, Real estate development: principles and
process, 4th edn, The Urban Land Institute, Washington DC.

Property Council of Australia 2001, Sustainable development guide: a roadmap for the
commercial property industry, Property Council of Australia, Sydney, NSW.

Wilkinson, S & Reed, R 2008, Property Development, 5th edn, Routledge, London.
Forlee, R 2005, Australian residential property development: a step-by-step guide for
investor, Wrightbooks, Minton, Qld.

Page 18 of 19
World Commission on Environment and Development 1987, The Brundtland Report, United
Nation.

BIBLIOGRAPHY

Adelaide City Council.

[Link]
+and+development+applications/Development+plans+and+their+use

Alenick, JB (ed) 1990, Real Estate Development Manual, Warren, Gorham & Lamont, New York.

Environment Protection Agency. [Link]

Turner, JR 1995, The commercial project manager, McGraw Hill, London.

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