Ordinary

Supplementary Agenda

 

An Ordinary Meeting of the Bega Valley Shire Council will be held at Council Chambers, Biamanga Room Bega Valley Commemorative Civic Centre Bega on
Wednesday, 20 October 2021 commencing at 2:00pm to consider and resolve
on the matters set out in the attached Agenda.

 

 

To:

Cr Russell Fitzpatrick , Mayor

Cr Liz Seckold

Cr Tony Allen

Cr Robyn Bain

Cr Jo Dodds

Cr Cathy Griff

Cr Mitchell Nadin

Copy:

Chief Executive Officer, Mr Anthony McMahon

Director, Assets and Operations, Mr Ian Macfarlane

Director,  Community, Environment and Planning, Dr Alice Howe

Director, Business and Governance, Mrs Iliada Bolton

Manager Communications and Events, Ms Emily Harrison

Project Lead, Recovery, Rebuilding and Resilience, Mr Chris Horsburgh

Minute Secretary, Mrs Jackie Grant

 

 

 


Council       20 October 2021

 

Supplementary Agenda

 

 8    Staff Reports – Planning and Environment (Sustainability)

8.1                Allied Natural Wood Enterprises Pty Ltd - Timber Optimisation Hub..................................... 4

12   Staff Reports – Governance and Strategy (Leading Organisation)

12.3              Twyford Hall, Merimbula............................................................................................................ 496              

 

 

 


Council

20 October 2021

 

 

Staff Reports –Planning And Environment

 

20 October 2021

  

8.1              Allied Natural Wood Enterprises Pty Ltd - Timber Optimisation Hub.................. 4


Council 20 October 2021

Item 8.1

 

8.1. 2020.81 Allied Natural Wood Enterprises Pty Ltd - Timber Optimisation Hub       

Director Community Environment and Planning   

Applicant

Allied Natural Wood Enterprises Pty Ltd (ANWE)

Owner

South East Fibre Exports Pty Ltd (SEFE)

Site

Lot 16 DP 1066187, Edrom Road, Edrom

Zone

IN1 General Industrial

Site area

47.9 hectares

Proposed development

Timber Optimisation Hub, being Mill Additions incorporating:

·    Installation and commissioning of machinery and equipment in the existing Sawmill Shed and existing Briquette Plant Shed

·    Construction of a Pallet Plant Shed

·    Installation, commissioning and use of machinery and equipment in a Pallet Plant Shed,

·    Use of existing Log Sorter, existing Sawmill, and briquette making in existing Briquette Plant Shed, and

·    Use of re-purposed water thickener tank to store stormwater

 

 

Officer’s Recommendation

1.    That Council determines that the proposed development does not constitute designated development having consideration to Part 2, Schedule 3 of the Environmental Planning & Assessment Regulation 2000 as the proposed alteration to the approved development will not significantly increase the environmental impacts of the total development.

2.    That Council approves Development Application 2020.81 for the installation and commissioning of machinery and equipment in an existing Sawmill Shed and existing Briquette Plant Shed, construction of a Pallet Plant Shed, installation, commissioning and use of machinery and equipment in a Pallet Plant Shed, and use of existing Log Sorter, existing Sawmill, and briquette making in existing Briquette Plant Shed, and use of re-purposed water thickener tank to store stormwater at Lot 16 DP 1066187, Edrom Road, Edrom, subject to the conditions provided in Attachment 14.

3.    That those parties who made a submission be notified of Council’s decision.

4.    That in the event that additional building approval services by Council officers are required to rectify the extent of works approved that are directly related to Development Application 2020.81, these services are provided pro bono.

 

Executive Summary

Development application (DA) 2020.81 is being reported to Council for determination. The development comprises the installation and commissioning of machinery and equipment in the existing Sawmill Shed and the existing Briquette Plant Shed, construction of a Pallet Plant Shed, installation, commissioning and use of machinery and equipment in a proposed Pallet Plant Shed and use of an existing Log Sorter and an existing Sawmill and briquette making in an existing Briquette Plant Shed, and use of re-purposed water thickener tank to store stormwater.

The proposed development is recommended for approval, subject to the conditions of consent provided in Attachment 14.

A detailed assessment of the proposal (Attachment 1) was undertaken by the Department of Planning, Industry and Environment (DPIE) on behalf of Bega Valley Shire Council (BVSC), as part of the collegial support provided to BVSC after the Black Summer Bushfires in 2020.

The assessment was based on the DA as originally submitted, which included construction of the total development.  Since the development was approved, it has been ruled invalid by the Land and Environment Court. Building work undertaken under the original consent has been regularised by way of a Building Information Certificate and does not form part of the current proposed development. This application seeks approval for use of these existing works and construction and use of the remainder of the development.

DPIE’s assessment of the development application has fully considered all relevant matters under Section 4.15 of the Environmental Planning and Assessment Act 1979 (EP&A Act), the objects of the EP&A Act and the principles of ecologically sustainable development.

A range of detailed conditions to address any residual impacts associated with the construction and operation of the development have been recommended (Attachment 14), should the development application be approved. These conditions were informed by the recommendations of the relevant public authorities and the issues raised during the public exhibition period.

On balance, it is considered that approval of the development would be in the public interest, subject to conditions.

Background

DA 2020.81 was submitted to Council on 23 March 2020 seeking development consent for the construction and operation of a log sorter, sawmill, pallet plant, briquette plant and repurposing of the existing water treatment thickener tank.

The application was publicly advertised and notified to adjoining landowners.  External referral and approval agencies were also consulted.

General Terms of Approval (Attachment 15) were issued by the NSW Environment Protection Authority (EPA) on 3 July 2020 pursuant to Section 4.46 of the EP&A Act.

On 4 September 2020 determination of the application was made under staff delegation and a Notice of Determination was issued on 14 September 2020.

On 4 December 2020 a Class 4 Judicial Review appeal was lodged in the NSW Land and Environment Court of NSW by South East Forest Rescue Inc (LEC Case Number 20/346528) against Council’s determination of the application.

On 24 August 2021, Judge Robson of the Land and Environment Court of NSW ruled under Section 4.16 of the EP&A Act that the development consent dated 4 September 2020 for DA 2020.81 in relation to land at Lot 16 DP 1066187 at Edrom Road, Edrom was invalid, void and of no force and effect.

The effect of this ruling meant that DA 2020.81 had not been lawfully determined.

Council then considered the application at its meeting of 14 September 2021, whereby it resolved as follows:

RESOLVED on the motion of Crs Bain and Nadin

1.    That Council determines that the proposed development does not constitute designated development having consideration to Part 2, Schedule 3 of the Environmental Planning & Assessment Regulation 2000 as the proposed alteration to the approved development will not significantly increase the environmental impacts of the total development.

2.    That Council approve Development Application 2020.81 for construction and operation of a log sorter, sawmill, pallet plant, briquette plant and repurposing of the existing water treatment thickener tank at Lot 16 DP 1066187, Edrom Road, Edrom subject to the conditions provided in Attachment 14.

3.    That those parties who made a submission be notified of Council’s decision.

4.    That in the event that additional building approval services by Council officers are required to rectify the extent of works approved that are directly related to Development Application 2020.81, these services are provided pro bono.

5.    Point 2 of the Officer’s Recommendation in relation to Item 3.1 of today’s business paper to recognise that the consent, should Council resolve to approve the development, would be issued under the new name: and noting that Allied Natural Wood Exports has recently changed its name to Allied Natural Wood Enterprises.

In favour:     Crs Fitzpatrick, Bain, Nadin and Allen

Against:    Crs Griff, Seckold and Dodds

 

On 17 September 2021 a Class 4 Judicial Review appeal was lodged in the NSW Land and Environment Court by South East Forest Rescue Inc (LEC Case Number 21/268031) against Council’s determination of the application. 

On 15 October 2021, Judge Moore of the Land and Environment Court of NSW ruled under Section 4.16 of the EP&A Act that the development consent dated 14 September 2021 for DA 2020.81 in relation to land at Lot 16 DP 1066187 at Edrom Road, Edrom was invalid, void and of no force and effect.

The remainder of the application that was not constructed under the consent while it remained valid is now presented to Council for determination.

Description of proposed development

The application as originally submitted to Council proposed the construction of a new log sorter, sawmill, pallet plant and briquette plant, and the repurposing of the existing water treatment thickener tank to store stormwater.

The effect of various judicial reviews and works undertaken by the Applicant up until 15 October 2021 mean that the development that is now the subject of this application can be described as the:

·    Installation and commissioning of machinery and equipment in the existing Sawmill Shed and existing Briquette Plant Shed,

·    Construction of a Pallet Plant Shed,

·    Installation, commissioning and use of machinery and equipment in the Pallet Plant Shed,

·    Use of Log Sorter and Sawmill, and briquette making in the Briquette Plant Shed, and

·    Use of re-purposed water thickener tank to store stormwater

 

The application before Council seeks development consent for the use and operation of three existing sheds and ancillary works, which have recently been installed at the Chip Mill site for the following equipment (the Mill Additions):

a.    A log sorter

b.    A sawmill

c.     A pallet mill, and

d.    A briquette plant

The Mill Additions have been constructed, with the exception of the pallet plant, and installed in 2021 pursuant to consent to DA 2020.81 before the consent was declared invalid by the Land and Environment Court, and also benefit from a Building Information Certificate.

The Applicant has provided Supplementary Information regarding the development, which has been considered by staff and is provided to Council as Attachment 16 for its consideration and decision making.

The development does not seek to alter the timber processing capacity of the site, and timber harvesting does not form part of this development application.

The Applicant advises that the development, the subject of this application, is confined to the use of timber already harvested, some of which is to be repurposed to the two identified new uses, namely pallets and briquettes.

The development is not considered State significant development, as it does not have a capital investment value (CIV) greater than $30 million in accordance with Schedule 2, Clause 4 of State Environmental Planning Policy (State and Regional Development) 2011. Consequently, BVSC is the consent authority for the development application.

Development plans and supporting documentation submitted with the development application, including additional information provided throughout the assessment, is provided as Attachments 2-13 & 16 of this report.

Planning Assessment

The proposal has been assessed in accordance with the matters for consideration under Section 4.15 of the EP&A Act as detailed in the Assessment Report (Attachment 1) undertaken by DPIE on behalf of BVSC, as part of the collegial support provided to BVSC after the Black Summer Bushfires in 2020.

In evaluating the development proposal, the consent authority is required to turn its mind to the Matters for Consideration specified by Section 4.15 of the EP&A Act.

Those matters are:

      (a)  the provisions of—

                (i)  any environmental planning instrument, and

                (ii)  any proposed instrument that is or has been the subject of public consultation                              under this Act and that has been notified to the consent authority (unless the Planning                  Secretary has notified the consent authority that the making of the proposed                                            instrument has been deferred indefinitely or has not been approved), and

                (iii)  any development control plan, and

                (iiia) any planning agreement that has been entered into under section 7.4, or any draft                   planning agreement that a developer has offered to enter into under section 7.4, and

                (iv)  the regulations (to the extent that they prescribe matters for the purposes of this                       paragraph),

                (v) (Repealed)

        that apply to the land to which the development application relates,

        (b)  the likely impacts of that development, including environmental impacts on both the         natural and built environments, and social and economic impacts in the locality,

        (c)  the suitability of the site for the development,

        (d)  any submissions made in accordance with this Act or the regulations,

        (e)  the public interest.

The Assessment Report (Attachment 1) assesses and details those matters for Council’s consideration.

Assessment Matters

In its assessment of the proposal, DPIE has considered the Statement of Environmental Effects (SEE), the issues raised in the submissions, the Applicant’s response to submissions and the additional information provided in its assessment of the development.

The key assessment issues relate to:

·    Air quality

·    Traffic impacts

Other issues are considered and detailed in Section 6.3 of the Assessment Report (Attachment 1) include:

·    Noise and vibration

·    Visual impacts

·    Vegetation clearing

·    Construction soil and water

·    Social and economic impacts

·    Greenhouse gas emissions

·    Construction waste

Council’s assessment planners have also considered Supplementary Information provided by the Applicant, which is provided as Attachment 16.

Consideration of impact on Eden forests

Concern has been raised in public submissions that the broader environmental impacts of the proposal, including the environmental impacts of harvesting native forests in the Eden region for the purpose of supplying timber to the development need to be addressed.

The proposed development, the subject of this development application, does not include harvesting timber from forests and the development does not seek to alter the timber processing capacity of the site, and timber harvesting does not form part of this development application.

In its consideration of the development application, Council needs to turn its mind to the Matters for Consideration specified by Section 4.15 of the EP&A Act, including;

“(b) the likely impacts of that development, including environmental impacts on both the natural and built environments, and social and economic impacts in the locality”

The Applicant has provided further information in relation to factors relevant in considering impacts from the proposed development on the native forest in the Eden region – see document from ANWE 11 October 2021 entitled “Likely Environmental Impacts: Development Application for Use of Recent Mill Additions”, at Attachment 16.

It is the conclusion of assessing officers that the use of the existing three sheds and ancillary works that form the basis of Development Application 2020.81 would have no real chance or possibility to impact on the Eden forests from which timber is to be supplied to the Chip Mill as:

a.    The application does not relate to the use of the entire Eden Chip Mill site, but only for the described Mill Additions

b.    The proposed use of the Mill Additions does not include harvesting timber from forests

c.     The proposed development would not increase the total volumes of timber processed at the Site

d.    The Mill Additions would result in a re-purposing of a percentage of timber supplied to the Applicant

e.    Any potential impacts as a result of the construction and operation of the development have been identified and suitable mitigation measures and environmental safeguards have been recommended through draft conditions of consent

f.     The development would not adversely impact on the locality.

 

Bega Valley Local Environmental Plan 2013

The development has been assessed in accordance with Bega Valley Local Environmental Plan 2013 (BVLEP 2013). The land is zoned IN1 General industrial (see Figure 1).

The land use is characterised as a Rural industry, which is permissible with consent in the IN1 General Industry zone.

rural industry means the handling, treating, production, processing, storage or packing of animal or plant agricultural products for commercial purposes, and includes any of the following—

        (a)  agricultural produce industries,

        (b)  livestock processing industries,

        (c)  composting facilities and works (including the production of mushroom substrate),

        (d)  sawmill or log processing works,

        (e)  stock and sale yards,

        (f)  the regular servicing or repairing of plant or equipment used for the purposes of a rural     enterprise.

Note—Rural industries are not a type of industry

sawmill or log processing works means a building or place used for handling, cutting, chipping, pulping or otherwise processing logs, baulks, branches or stumps, principally derived from surrounding districts, into timber or other products derived from wood.

General Industry is also permissible in the zone.

general Industry means a building or place (other than a heavy industry or light industry) that is used to carry out an industrial activity.

industrial activity means the manufacturing, production, assembling, altering, formulating, repairing, renovating, ornamenting, finishing, cleaning, washing, dismantling, transforming, processing, recycling, adapting or servicing of, or the research and development of, any goods, substances, food, products or articles for commercial purposes, and includes any storage or transportation associated with any such activity.

The development is not considered to be Heavy Industry (which would be prohibited in the IN1 zone) as the proposal would not have a significant adverse impact in the locality or on existing or likely future development on other land in the locality and would not pose a significant risk in the locality to human health, life or property or to the biophysical environment, particularly given the control measures identified as part of the EPL and the proposed conditions of consent.

heavy industry means a building or place used to carry out an industrial activity that requires separation from other development because of the nature of the processes involved, or the materials used, stored or produced, and includes—

        (a)  hazardous industry, or

        (b)  offensive industry.

It may also involve the use of a hazardous storage establishment or offensive storage establishment.

The objectives of the IN1 General Industry zone are:

·    To provide a wide range of industrial and warehouse land uses.

·    To encourage employment opportunities.

·    To minimise any adverse effect of industry on other land uses.

·    To support and protect industrial land for industrial uses.

·    To allow a range of support services that do not have an adverse impact on the viability of business and commercial zones.

The proposed development is considered to be consistent with the objectives of the zone.

Map

Description automatically generated

Figure 1: Land use zoning as per Bega Valley Local Environmental Plan 2013

 

Alterations and additions to development not designated development

Schedule 3 of the Environmental Planning and Assessment Regulation 2000 (EP&A Regulation) specifies certain development types to be ‘designated development’.  Designated development refers to developments that are high-impact developments (e.g., likely to generate pollution) or are located in or near an environmentally sensitive area (e.g., a wetland).  If a development application is categorised as designated development, the application must be accompanied by an environmental impact statement (EIS).

Clause 33 of Part 1 in Schedule 3 of the EP&A Regulation specifies certain wood or timber milling or processing works to be designated development, as follows:

“33 Wood or timber milling or processing works

Wood or timber milling or processing works (being works, other than joineries, builders supply yards or home improvement centres) that saw, machine, mill, chip, pulp or compress timber or wood--

        (a) that have an intended processing capacity of more than 6,000 cubic metres of timber         per year and--

                (i) are located within 500 metres of a dwelling not associated with the milling works, or

                (ii) are located within 40 metres of a natural waterbody or wetland, or

                (iii) burn waste (other than as a source of fuel), or

        (b) that have an intended processing capacity of more than 50,000 cubic metres of timber      per year.”

Clause 35 of Part 2 of Schedule 3 of the EP&A Regulation specifies that development involving alterations or additions to development (whether existing or approved) is not designated development if, in the opinion of the consent authority, the alterations or additions do not significantly increase the environmental impacts of the total development (that is the development together with the additions or alterations) compared with the existing or approved development.

Clause 36 of Part 2, Schedule 3 of the EP&A Regulation provides the factors to be taken into consideration when a consent authority forms the opinion that the alterations and additions are not designated development. Those factors are listed below:

36   Factors to be taken into consideration

In forming its opinion as to whether or not development is designated development, a consent authority is to consider—

        (a)  the impact of the existing development having regard to factors including—

                (i) previous environmental management performance, including compliance with the                        conditions of any consents, licences, leases or authorisations by a public authority and                                compliance with any relevant codes of practice, and

                (ii)  rehabilitation or restoration of any disturbed land, and

                (iii) the number and nature of all past changes and their cumulative effects, and

        (b)  the likely impact of the proposed alterations or additions having regard to factors                              including—

                (i) the scale, character or nature of the proposal in relation to the development, and

                (ii) the existing vegetation, air, noise and water quality, scenic character and special                          features of the land on which the development is or is to be carried out and the                                          surrounding locality, and

                (iii) the degree to which the potential environmental impacts can be predicted with                            adequate certainty, and

                (iv) the capacity of the receiving environment to accommodate changes in                                     environmental impacts, and

        (c)   any proposals—

                (i) to mitigate the environmental impacts and manage any residual risk, and

                (ii) to facilitate compliance with relevant standards, codes of practice or guidelines                             published by the Department or other public authorities.

To determine whether the proposed development at the Eden Chip Mill site can be considered as non-designated development under Schedule 3, Part 2 of the EP&A Regulation, the following assessment has been conducted to assist Council in its decision making.

Background

In the late 1960s, Harris-Daishowa (Australia) Pty Ltd was issued a Special Licence (Licence No.L78005) by the then Forestry Commission of NSW for the establishment of a wood chip mill at Edrom Road, Eden in the Bega Valley Shire (see Figure 1). The site has been subject to a number of development consents over the past 50 years, which have largely related to the installation of new or upgraded equipment or the establishment of new stockpiles.  It is noted that the burner and the pellet plant have been decommissioned in more recent years.

Issue

Schedule 3, Part 1 Clause 33 of the EP&A Regulation, details that Wood or timber milling or processing works over a specified production threshold can be designated development.  The Timber Optimisation Hub would have a processing capacity of more than 50,000 m3 of timber each year, which requires an assessment of whether it meets the merit-based threshold for designated development (see Table 1).

The Applicant has requested that BVSC consider the proposed Timber Optimisation Hub (Mill Additions) as non‑designated development under Part 2, Schedule 3 of the EP&A Regulation.

Part 2, Schedule 3 Consideration

Under Part 2, Schedule 3 of the EP&A Regulation, a development involving alterations or additions (whether existing or approved) can be considered as non-designated development, if in the opinion of the consent authority, the alterations or additions do not significantly increase the environmental impacts of the total development, compared with the existing or approved development.

The proposal by the Applicant is considered to be ‘additions’ to an approved development as the proposal involves the installation of new processing equipment and structures (including use of existing structures) and as such can be considered under Part 2, Schedule 3 of the EP&A Regulation.

Lot 16 (the subject site for this development) is 47.9 hectares (ha); however, the owner also owns the adjoining land bringing the total land holding of industrial zoned land close to 100ha, located at Jews Head, Edrom Road, Edrom in the Bega Valley Shire. The site is legally described as Lot 16 in DP 1066187, and is located approximately 3.4 kilometres (km) to the south-east of Eden (Figure 2). The site is owned by South East Fibre Exports Pty Ltd and is operated by the Applicant.

The site has been developed to support the operation of the wood chip mill and comprises wood chip stockpiles, processing and administration buildings, water treatment facilities and log storage areas. The wood chip mill currently processes up to 650,000 tonnes of timber per annum and is regulated by the EPA under an Environment Protection Licence (EPL).

Current on-site activities include:

·    Processing of hardwood and softwood roundwood logs into wood chips

·    Log and chip storage

·    Log and wood chip delivery to the adjacent wharf for water transport

·    Sandblasting, painting and other maintenance requirements

·    Water storage and stormwater treatment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Figure 2 – Location of the site with respect to Eden township

There are a number of specific matters that are prescribed under the EP&A Regulation to be considered by a consent authority when determining if a development can be considered non‑designated development under Part 2, Schedule 3 of the EP&A Regulation.

The Applicant has provided a SEE (Attachment 3) containing their assessment of the development against Part 2, Schedule 3 of the EP&A Regulation and an assessment of the potential impacts.  The consideration of the proposal against these matters is provided in Table 1.

Table 1 - Matters to be considered in determining whether a development is designated

Factors to be taken into consideration

Evaluation

Conclusion

(a)  the impact of the existing development having regard to factors including:

(i)  previous environmental management performance, including compliance with the conditions of any consents, licences, leases or authorisations by a public authority and compliance with any relevant codes of practice, and

There have been three recorded non‑compliances with EPL 1482:

2001 – Three Dryer Outlet tests were missed due to faulty testing equipment

2004 – Exceedance of the site’s water discharge limit

2005 – Accidental discharge of high pH water from the site.

No non-compliances have been recorded in relation to the exceedance of emissions limits, and no non-compliances have been recorded since 2005.

Two audits have been undertaken for the site. In the 2012 audit, the EPA found that monitoring data could not be found on the licensee’s website. By 11 February 2013, this had been rectified and the audit was accepted by the EPA.

A second audit to assess the level of compliance with the Pollution Incident Response Management Plan was undertaken between January and March 2013 and the site was found to be in compliance.

Staff are satisfied with the overall environmental performance of the existing development and notes the subject development application would include additional monitoring and emission control measures.

(ii)  rehabilitation or restoration of any disturbed land, and

The development would only involve minor earthworks to provide a level area for the installation of new equipment and sheds and would be located in a previously disturbed section of the site.

Staff are satisfied the development would not adversely impact upon the rehabilitation or restoration of disturbed land.

(iii)  the number and nature of all past changes and their cumulative effects, and

The site has been subject to a number of development consents over the past 50 years, which have largely related to the installation of new or upgraded equipment or the establishment of new stockpiles.

The total volume of timber processed at the site peaked in 2008 at 1.2 million tonnes of logs per annum.

When the development is fully operational, the total volume of timber processed at the site is expected to remain at current levels (650,000 tonnes per annum).

Staff are satisfied the cumulative effects of changes to the existing wood chip mill are minor.

(b)  the likely impact of the proposed alterations or additions having regard to factors including:

(i)  the scale, character or nature of the proposal in relation to the development, and

The development’s footprint is minor (approximately 3.5 hectares (ha)) in the context of the existing wood chip mill (40 ha) and the overall site (100 ha).

In addition, the development does not seek to alter the timber processing capacity of the site, and timber harvesting does not form part of this development application.

The development would improve the operational efficiency of the existing wood chip mill and allow for the creation of new, higher-value wood products from sawlogs and existing on-site waste streams (sawdust).

Staff are satisfied that the scale, character and nature of the proposal will not significantly change the existing wood chip mill.

(ii)  the existing vegetation, air, noise and water quality, scenic character and special features of the land on which the development is or is to be carried out and the surrounding locality, and

The Applicant has provided an assessment of the potential environmental impacts associated with the development, including air, traffic and noise impacts.

The assessment notes particulate emissions from the proposed briquette plant would be managed through the installation of a plenum pulse filter system and ongoing monitoring under the development’s EPL.

Construction traffic would peak at 29.9 light vehicles and 1.3 heavy vehicles per day during the busiest construction periods and would be managed through the implementation of a Construction Traffic Management Plan. Total truck movements associated with the operation of the development would remain unchanged when compared to existing operations at the wood chip mill.

The assessment notes the development would comply with the relevant construction and operational noise trigger levels.

In addition, the development would be centrally located within the existing wood chip mill, and would be separated from surrounding coastal areas, Twofold Bay and the historic Edrom Lodge.

Staff are satisfied that the environmental impacts of the proposal will not be significant.

The development application has been accompanied by detailed air, noise and traffic assessments which demonstrate all impacts can be suitably mitigated.

(iii)  the degree to which the potential environmental impacts can be predicted with adequate certainty, and

An assessment of the proposal has been provided which considers potential air quality, traffic and noise impacts associated with the operation of the new plant equipment. Council notes the level of impacts resulting from the proposal would be relatively minor and that any residual impacts would be appropriately managed through the existing EPL and any recommended conditions of consent.

Therefore, the air quality, traffic and noise impacts resulting from the proposal are considered to be predicted with adequate certainty.

Staff are satisfied that all relevant issues have been predicted and, where necessary, addressed.

(iv)  the capacity of the receiving environment to accommodate changes in environmental impacts, and

The proposal would be located within the centre of the existing wood chip mill and would require minimal clearing of remnant vegetation for the establishment of Asset Protection Zones (APZs). The receiving environment is considered to have the capacity to accommodate the changes in environmental impacts generated by the new processing equipment.

Staff are satisfied that the potential environmental impacts to the surrounding environment are minimal.

(c)  any proposals:

(i)  to mitigate the environmental impacts and manage any residual risk, and

There would be a variety of plans managing construction impacts (including traffic, noise and water). The management of any operational impacts would be guided by the monitoring outlined in any development consent granted for the proposal.

Staff are satisfied that the environmental impacts of the development will be adequately mitigated.

(ii)  to facilitate compliance with relevant standards, codes of practice or guidelines published by the Department or other public authorities.

The Applicant is required to continue compliance with the existing EPL and to collaborate with the EPA.

Furthermore, the SEE indicates the proposal would maintain compliance with a variety of standards including, but not limited to:

- Managing Urban Stormwater; Soils and Construction Vol 1 (‘the blue book’) (Landcom, 2004)

- Guidelines for Developments Adjoining Land Managed by the Office of Environment and Heritage (OEH, 2013)

- the Interim Construction Noise Guidelines.

Staff are satisfied that the Applicant will continue to ensure compliance with the site’s existing EPL (as modified), relevant standards and any existing and proposed conditions of consent.

 

The analysis concludes that the construction and operation of the Timber Optimisation Hub will not significantly increase the risk and environmental impacts of the total development, including the environment compared to the existing development.

Furthermore, the assessment provided by the Applicant demonstrates any potential impacts will be below the relevant environmental criteria and adequately managed through a series of new management plans and the development’s EPL.

As the proposal would be centrally located within the existing wood chip mill and does not seek to increase the volume of timber processed at the site each year, the environmental impacts of the Timber Optimisation Hub are not expected to be significant.

For the reasons outlined above, the proposed development falls within Part 2, Schedule 3 of the EP&A Regulation and does not constitute designated development.

It is recommended that Council form the opinion that the proposed alteration to the approved development will not significantly increase the environmental impacts of the total development and therefore is not designated development.

Options

Council has the option to:

1.    Approve the application as per the staff recommendation and in accordance with the conditions of consent identified in Attachment 14.

2.    Defer determination of the application and request a separate report from staff to the next practicable meeting providing Council with an amended set of conditions. Councillors would need to identify the conditions to be modified and the grounds for amending the conditions.

3.    Defer determination of the application and request a separate report from staff to the next practicable meeting advising Council of matters under Section 4.15 of the EP&A Act, if any, that would enable consideration to be given by Council to the refusal of the proposal under DA 2020.81, including reasons for refusal in the event that Council ultimately determines to refuse the Application.

Community and Stakeholder Engagement

Engagement undertaken

After accepting the development application and the SEE, BVSC:

·    Made the documentation publicly available from 9 April 2020 until 13 May 2020 (35 days) on Council’s website

·    Notified landowners/occupiers in the vicinity of the site about the exhibition period by letter

·    Notified and invited comment from relevant public authorities and electricity providers

·    Advertised the exhibition period in the Eden Magnet newspaper

A total of 165 submissions were received on the development during the exhibition period, including:

·    Two from public authorities

·    One from the relevant electricity provider

·    Six from special interest groups

·    One from a member of the Legislative Council

·    155 from the public

Of the 165 submissions received, 160 objected to the development, one was in support and four provided comments or requests for clarification. 

The Applicant’s response to submissions is provided as Attachment 12. A summary of the issues raised in submissions is considered in the Assessment Report (Attachment 1). A full copy of submissions received during the public exhibition period has been provided to all Councillors through the Councillor portal for review and consideration in the determination of this matter.

Since commencement of Court proceedings on 4 December 2020, South East Forest Rescue submitted to BVSC an addendum to their original submission, received via email 24 August 2021. A full copy of that submission has been provided to Councillors, via the Councillor portal, for consideration in the determination of this matter.  It is considered that there are no new relevant matters raised in that submission.

The Applicant provided Supplementary Information to Council on 11 October 2021, which is included at Attachment 16.  This information seeks to clarify elements of the proposed development.

Submitters were advised about Council’s consideration of the development prior to Council’s determinations.

Engagement planned

Post determination, submitters and the Applicant will be advised of Council’s decision.

Financial and Resource Considerations

Assessing proposals for development is part of the regular business of BVSC and resourcing to undertake that function is included in BVSC’s adopted 2021-22 Budget.

Legal /Policy

Should Council resolve to refuse the application, the Applicant has the normal appeal rights to the Land and Environment Court under the provisions of the EP&A Act.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The development, subject to compliance with the conditions identified in the proposed consent, is considered to be consistent with the following goals of the Bega Valley Shire Community Strategic Plan 2040:

Goal 3: Our economy is prosperous, diverse and supported by innovative and creative businesses.

Goal 5: Our air and water is pristine and our natural environment and rural landscapes are protected.

Goal 6: We are leaders in sustainable living and support innovative approaches to resource recovery and the production of renewable energy and food.

Environment and Climate Change

An assessment of environmental impact is detailed in the Assessment Report provided as Attachment 1, including consideration of the principles of ecologically sustainable development, greenhouse gas emissions and climate change.

The potential environmental impacts of the development have been assessed and, where potential impacts have been identified, mitigation measures and environmental safeguards have been recommended.

Concern has been raised in public submissions that the broader environmental impacts of the proposal, including the environmental impacts of harvesting native forests in the Eden region for the purpose of supplying timber to the development need to be addressed.

The proposed development, the subject of this development application, does not include harvesting timber from forests and the development does not seek to alter the timber processing capacity of the site, and timber harvesting does not form part of this development application.

In addition, it is noted that logging activities are regulated separately under the Forestry Act 2012 and its associated regulations.

Under Part 5B of the Forestry Act 2012, forestry operations in State forests or other Crown-timber lands must obtain an integrated forestry operations approval granted by both the Minister for the Environment and the Minister for Lands and Forestry.

As part of this process, operators must demonstrate that forestry operations will be carried out in accordance with the principles of ecologically sustainable forest management, including the application of the precautionary principle to prevent environmental harm.

The likely impacts associated with the Timber Optimisation Hub are detailed in the Assessment Report (Attachment 1). It is concluded that all environmental impacts can be appropriately managed and mitigated through the commitments made by the Applicant and the recommended conditions of consent.

The Section 4.15 Assessment detailed in the Assessment Report (Attachment 1) considers the relevant matters for consideration, including the likely impacts of the proposed development, including environmental impacts on both the natural and built environments, and social and economic impacts in the locality.

The development has assessed the likely impacts on the locality.

Economic

The economic impacts are addressed in the Assessment Report (see Attachment 1).

Risk

Assessment of this development application does not introduce new risks to BVSC.  Development impacts, and the risks associated with the use in terms of environmental impact, have been considered as detailed in this report and its attachments.

Social / Cultural

There are no identified impacts to cultural heritage associated with the proposed development as detailed in the attached Assessment Report and as described in the Applicant’s Aboriginal Due Diligence Assessment (Attachment 5).

A range of social impacts have been considered in the assessment of this application, including concerns raised in submissions, which have been considered and detailed in the Assessment Report (Attachment 1).

Attachments

1.         Assessment Report prepared by DPIE

2.         Development Plans

3.         Statement of Environmental Effects (SEE)

4.         Biodiversity Assessment Attachment (Appendices F & G of SEE)

5.         Aboriginal Due Diligence Assessment

6.         Noise Assessment Report

7.         Supplementary Noise Assessment Report

8.         Air Assessment Report

9.         Supplementary Air Assessment Report

10.       Water Cycle Assessment and Management Report

11.       Applicant's Response to Request for Information dated 29 May 2020

12.       Applicant's response to public submissions received during exhibition period

13.       Pre-construction Air Assessment

14.       Proposed Conditions of Consent

15.       General Terms of Approval from NSW EPA

16.       Supplementary Information from the Applicant

 


Council

20 October 2021

Item 8.1 - Attachment 1

Assessment Report prepared by DPIE

 

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Council

20 October 2021

Item 8.1 - Attachment 2

Development Plans

 

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Council

20 October 2021

Item 8.1 - Attachment 3

Statement of Environmental Effects (SEE)

 

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Council

20 October 2021

Item 8.1 - Attachment 4

Biodiversity Assessment Attachment (Appendices F & G of SEE)

 

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Council

20 October 2021

Item 8.1 - Attachment 5

Aboriginal Due Diligence Assessment

 

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Council

20 October 2021

Item 8.1 - Attachment 6

Noise Assessment Report

 

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Council

20 October 2021

Item 8.1 - Attachment 7

Supplementary Noise Assessment Report

 

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Council

20 October 2021

Item 8.1 - Attachment 8

Air Assessment Report

 

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Council

20 October 2021

Item 8.1 - Attachment 9

Supplementary Air Assessment Report

 

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Council

20 October 2021

Item 8.1 - Attachment 10

Water Cycle Assessment and Management Report

 

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Council

20 October 2021

Item 8.1 - Attachment 11

Applicant's Response to Request for Information dated 29 May 2020

 

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Council

20 October 2021

Item 8.1 - Attachment 12

Applicant's response to public submissions received during exhibition period

 

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Council

20 October 2021

Item 8.1 - Attachment 13

Pre-construction Air Assessment

 

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Council

20 October 2021

Item 8.1 - Attachment 14

Proposed Conditions of Consent

 

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Council

20 October 2021

Item 8.1 - Attachment 15

General Terms of Approval from NSW EPA

 

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Council

20 October 2021

Item 8.1 - Attachment 16

Supplementary Information from the Applicant

 

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Council

20 October 2021

 

Staff Reports –  Governance And Strategy

 

20 October 2021

  

12.3            Twyford Hall, Merimbula.................................................................................. 496


Council 20 October 2021

Item 12.3

 

12.3. Twyford Hall, Merimbula     

Council has received a request for support from Twyford Hall Incorporated (THI) in relation to the Twyford Hall complex currently undergoing upgrades.

Chief Executive Officer  

Officer’s Recommendation

That Council:

1.    Do not support Tywford Hall Incorporated financially with respect to the Twyford Hall Complex upgrades

2.    Provide support to Twyford Hall to secure funds through other means such as grants

 

Executive Summary

Twyford Hall Incorporated (THI) have been undertaking significant upgrades at Twyford Hall funded by a NSW Government grant they received. As the project has progressed THI have encountered significant complications which has placed them in a compromised financial position.

Background

THI received a $7.4m NSW Government grant to undertake significant upgrades and improvements to Twyford Hall. Council has previously considered several reports related to Twyford Hall. These reports have considered financial and management arrangements.

THI have been delivering upgrades to the facilities on the Twyford Hall site under the funded grant however the project is now at a standstill due to several factors as outlined in the attachment to this report received from THI. THI have approached Council seeking some form of support to progress with the project with further details outlined in this report.

Below is part of the request from THI:

Just formally writing to you to advise that the Twyford board resolved last night to formally request the financial assistance of BVSC.

We acknowledge the terms below. To further define the terms, we would propose that Council provides cash funding of $370,000 representing the 5% committed milestone from Regional NSW. We would use those funds to pay out existing liabilities only. We would agree to repay those funds over 10 years from the proceeds of the retail shop rental funds. However, if Twyford is successful in obtaining funds to complete the theatre, allowing for the draw down of the final committed 5% milestone, we would make immediate and full repayment of the liability owed to Council from those funds.

Options

There are several options available to Council, each with their own risk profiles with risks to be discussed further under the risks section of this report.

The principal options to Council are to either provide some form of financial support or surety to THI or to provide no support.

If Council does resolve to provide support, it could either be in the form of direct financial contribution or by providing surety over loans if THI were to take up borrowings or a combination of both.

There are also options available as to the level of support Council may elect to provide, noting that THI have a short term or immediate financial liability to resolve as well as a funding gap to ensure the facility can become operational as intended.

Community and Stakeholder Engagement

There has been limited broader community engagement on Council’s part associated with the Twyford Hall upgrades.

Engagement undertaken

Council has been engaging with THI on the progress of the project. Although Council has undertaken limited broader engagement with the community on the project the project has a profile within the community through the engagement and promotion undertaken by THI.

Council has also made representations to the NSW Government and funding body to support THI in their attempts to access and secure funding.

Engagement planned

At this stage there is no broader public engagement planned on Council’s part. Council will continue to liaise with THI on the project irrespective of the resolution of Council. Based on the recommendation of this report Council would also engage with potential funding bodies in support of THI.

Financial and Resource Considerations

THI currently has $740k unclaimed from the total of $7.4m of grant funding which represents the final 10% milestone which was linked to a final occupation certificate for the facility. THI have recently reached an agreement with the funding body to release $370k (50%) of the final unclaimed amount (or 5% of the total amount). The final remaining $370k will be available for THI to claim once they are able to occupy the facility.

The cost associated with undertaking the remaining works to enable occupancy of the facility were not able to be confirmed at the time of writing of this report with THI awaiting a quantity surveyors report to provide a higher confidence estimate. In the interim it is anticipated the cost of outstanding works is likely to be in the range of $500k to $1m.

Essentially, THI have two independent and linked financial issues, the first being that they cannot access all of the NSW Government grant until they receive an occupation certificate, however they are unable to fund the works to get an occupation certificate without significant additional financial inputs.

Legal /Policy

Section 356 of the Local Government Act regulates Council’s ability to provide financial assistance. Given Twyford Hall is legally a Council asset and the financial support discussed in this report is not for personal gain and for the purpose of funding Twyford Hall it is unlikely there would be any contravention of section 365 of the Local Government Act.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Goal 1 of the Community Strategic Plan states: We are co-operative, caring and enjoy a culturally rich community life.

Goal 12 of the Community Strategic Plan states: Our Council is financially sustainable and services and facilities meet community need.

Environment and Climate Change

There are no environment and climate change impacts associated with this report.

Economic

There is likely to be significant tourism and broader economic benefits associated with the completion of Twyford Hall upgrades.

Risk

There are risks associated with both providing support and not providing support to THI. The key risks associated with the two different pathways are as follows:

Supporting THI

Council itself is in a relatively constrained financial position with limited reserves and operating deficits. Providing direct cash support to THI would be at the expense of other services to the community or other priority projects within adopted Council plans.

If Council were to provide surety of loans taken out by THI there is obviously direct financial risk should THI default on loans repayments. At the time of preparing this report THI have not provided financial projections or modelling substantiating the scale of loan they would have the capacity to service based on known financial inputs. They have provided retrospective financial statements. Should Council consider providing loan surety it would be essential to understand the risks associated with different loan terms.

Not supporting THI

There are also risks associated with not providing any support to THI. As Council is the legal Trustee for Twyford Hall, should THI cease to exist the responsibility for the site would revert to Council. This would mean Council would need to make decisions around the site, noting that for it to be used there would need to be work done or alternatively the site would effectively become ‘mothballed’.

If Council does not provide financial support or surety to THI there is a risk that they may not be able to secure the funding needed to allow occupation or significant delays. There is then a linked reputational risk to THI within the arts sector and with program funding bodies.

Social / Cultural

There are significant social and cultural benefits likely to flow from the upgraded Twyford Hall.

Attachments

1.         Attachment - Twyford Hall, Merimbula

 


Council

20 October 2021

Item 12.3 - Attachment 1

Attachment - Twyford Hall Merimbula

 

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