Denman Prospect Stage 3 will have nearly 3000 homes. Photo: SLA.
The re-released final stage of Denman Prospect will fit more homes into a smaller space than the aborted 2022 tender, allowing nearly 3000 homes.
The Suburban Land Agency (SLA) has released the tender for Stage 3 of the Molonglo Valley suburb, the first two stages of which the Snow family’s Capital Estate Developments (CED) developed.
This time the land parcel is 40 hectares, six less than before, with a yield of 2950 high- and medium-density homes, 1250 more than under the previous tender.
There is also a requirement to build 144 affordable and 207 community housing homes and 60 public housing homes. The community and public housing properties will have to be handed back to the ACT Government, along with a serviced public primary school site.
If the serviced school block is surrendered by 1 July, 2028, the successful tenderer may be eligible for a $2 million payment.
The zoning also allows mixed-use developments and commercial premises.
Instead of the previous two-stage tender, the new release uses a single-stage tender looking for the highest price. A 100 per cent evaluation weighting is given to the tenderer with the highest price, subject to the reserve.
Like the other stages of Denman Prospect, Stage 3 will be gas-free and power lines will need to be underground but a range of sustainability requirements listed in the previous tender is not in the new one although some may come under the planning regimen.
The previous tender included public infrastructure such as EV charging in public carparks, a site for a community-scale battery, and a community garden.
Molonglo Valley Community Forum convener Ryan Hemsley said it was deeply concerning that the tender process appeared to be based solely on price.
“A procurement strategy that neglects non-financial criteria sends an alarming message that the long-term livability and sustainability of our community are secondary to maximising revenue,” he said.
“Given the site’s critical location adjacent to areas of national environmental significance and the Molonglo Town Centre, a more balanced evaluation framework is essential. A single-minded focus on financial return risks delivering a poorly integrated and unsustainable community right in the heart of the Molonglo Valley.”
Mr Hemsley said the preferred tenderer must have proven experience in delivering this kind of development.
“The absolute last thing the community wants is a repeat of the Coombs Shops debacle.”
The forum urged the ACT Government to amend the sales process and incorporate clear, weighted criteria for community and sustainability outcomes, to ensure the final stage of Denman Prospect becomes a model for responsible urban development.
A government spokesperson said the Territory Plan was amended to embed a Concept Plan changing the zoning, layout, dwelling mix, and the public open space network, resulting in the higher yield.
Treasurer and Planning Minister Chris Steel, announcing on Monday an accelerated land release program in the ACT Budget, indicated that some land like Denman Prospect needed to be re-released to achieve both a better return to the Territory and more housing.
“We need to be realistic and work with the market, work with construction partners to be able to deliver more land more quickly, and we need to make sure that when we’re selling that land that the conditions are realistic and it actually delivers the outcomes of new homes as well as the other facilities that we want to achieve,” he said.
Asked if it was response to industry concerns that there there are too many conditions attached to land sales, Mr Steel said it was a response to the outcome of some of the tenders that had been released.
On the question of quality, Mr Steel said the Budget would boost the National Capital Design Review Panel’s resources to ensure good design was at the heart of new housing.
The government spokesperson said the various design guides and the outcomes-based planning system would also ensure quality development.
The land is being released as an englobo site, meaning the successful tenderer will be responsible for detailed planning, subdivision, marketing and future land sales.
When the 2022 tender was released, CED was keen to finish the job at Denman Prospect and remains committed to that.
Capital Property Group CEO Stephen Byron said the company believed the best outcome for the suburb and for future residents would be for it to complete this project and see it through to its full potential.
CED managing director Gabbie Foster said development of the first two stages extended well beyond land development, delivering some of Canberra’s best playgrounds and parklands, extensive sculptural and cultural trails, and vibrant local shops.
“We are proud of the vibrant, connected community we have helped shape over the past 10 years,” she said.
”This project has set a new benchmark for land development in the ACT, and we remain passionate about seeing it through to its final stage.”
CED director of project delivery Nick McDonald Crowley said the new tender was complex and the company was studying the many documents to do its due diligence.
The land is zoned RZ5 High Density Residential, CZ5 Mixed Use Commercial, CFZ Community Facilities and PRZ1 Urban Open Space.
The SLA said the site’s proximity to the Molonglo River provided an opportunity to complement the surrounding amenity.
“There are an abundance of existing facilities and amenities for a developer to leverage,” it said.
The site is directly opposite the future Molonglo Town Centre, which will include a main shopping and commercial precinct, a retail and service trades area, district library and community centre, and a high school and college.
The tender closes on 11 September.
