Rodney Stevens

Not for profit seniors and aged care housing provider, Clarence Village is in negotiations with Clarence Valley Council about the amount of council’s legal costs it has to pay following a Land and Environment Court judgement.

Clarence Village Limited lodged an application with the Land and Environment Court LEC in 2023, questioning whether multiple charges council had levied in 2022 and 2023 on one parcel of land were valid under section 501 of the Local Government Act, not seeking an exemption from paying sewerage charges as previously reported.

LEC Chief Judge, Justice B J Preston who presided over the matter dismissed the proceedings and ordered Clarence Village Limited to pay council’s court costs of $146,054.40.

The CV Independent was contacted by the CEO of Clarence Village, Duncan McKimm, who advised they were in negotiations with council about the amount of council’s legal fees they will have to pay.

He said he made a deputation at the February 2023 Clarence Valley Council meeting requesting the matter be deferred so the parties could negotiate, before it got to court.  

Mr McKimm said Clarence Village Limited accepts the LEC judgement.

“The result of Clarence Village Limited’s CVL court challenge to the validity of sewer charges levied in 2022 and 2023 is clear and we accept the Court’s judgement,” he said.

Despite accepting the court’s judgement, Mr McKimm said council’s current charging system should be based on a user pays system, not the construction method of the premises.

“However, we will continue to work to address the effect of CVC’s current charging system, which makes bricks and mortar affordable housing unviable relative to manufactured homes,” he said.  

“Clarence Village believes all users should pay for what they use, and we are happy to pay for our sewer services.

“Our issue is that different users are currently charged different amounts.”

Mr McKimm said councils current charging system could impact future developments.

“This is important to Clarence Village as we have plans to construct 32 units for seniors affordable housing in South Grafton,” he said.

“Ideally, CVL would build its proposed development the same way our other assets have been built – to a high quality by local trades.

“However, under CVC’s existing charging system, if Clarence Village’s proposed 32 units were built by local builders on-site it would be charged $40,382 each year for sewer access.

“If we were to build these same units as manufactured homes instead, they would be classified by CVC as non-residential and charged $10,000 each year for the same sewer access.”

Mr McKimm said council should follow advised Department of Planning and Environment guidelines for sewerage charges.

“Users should be charged for sewer access based on the size of their water meter – as advised by the Department of Planning and Environment, not by the construction method used,” he said.

“If Clarence Valley Council did this, CVL could build more affordable housing units for seniors at our South Grafton site out of bricks and mortar.

“If not, these units will have to be constructed with manufactured homes, sending the economic benefit of the investment out of the Valley.”

A Clarence Valley Council spokesperson said Clarence Village Limited disagreed with Council’s ability to charge per water connection (irrespective of the number of connections contained in a parcel of land).

“The Land and Environment Case sought to settle this,” the spokesperson said.

“As per the judgement and orders available of the NSW Case Law website, the Court ordered that Clarence Village Limited is to pay Clarence Valley Council’s costs of the proceedings.

“Clarence Valley Council has advised Clarence Village Limited they will accept payment of 75% of Council’s legal costs (offering a 25% discount).”