A Royalties for Regions project to develop residential land in South Hedland has not fully satisfied its initial contractual agreements. Some lots remain undeveloped due to market changes, and a request to vary the agreement regarding vesting lots in trusts is under discussion.

AnsweredQoN 3156Legislative Council
Asked
12 May 2015
Portfolio
Regional Development

QuestionView source ↗

I refer to the financial assistance agreement for a Royalties for Regions project to develop residential land of Lot 502, South Hedland with the Department of Regional Development and Lands, Kariyarra Mugarinya Development Pty Ltd and Kariyarra Mugarinya Property Joint Venture Pty Ltd, and I ask: (a) have the initial contractual agreements been satisfied; (b) if yes to (a), please provide a detailed explanation of how; and (c) if no to (a), please provide a detailed explanation of why not, and what measures the Minister will take to rectify this?

AnswerView source ↗

Answered
11 August 2015
Responded by
Minister for Housing representing the Minister for Regional Development
Response time
91 days
(a) No.
(b) Not Applicable.
(c) 10 of the individual residential lots owned by Kariyarra Mugarinya Property Joint Venture Pty Ltd (KMJV) do not yet contain completed dwellings.  KMJV  advised the Department of Regional Development (DRD) that the decision not  to build on the lots was made due to changes in the property market but that  its intention to construct the houses when the market is deemed more suitable  remains the same.  Given KMJV's intent to construct the houses on these lots  remains and that KMJV will be the financier and the beneficiary of the profits  of the houses, it is considered that measures to rectify this matter are not yet required.
Under the financial assistance agreement, KMJV is required to vest all 22 lots retained by it in the Kariyarra Mugarinya Property Trust.  This has not yet occurred.
DRD received a request from KMJV to vary the agreement, enabling the lots  to be vested in two separate trusts.  DRD, Pilbara Development Commission and KMJV are undertaking discussions about the justification and appropriateness of this request.
All other contractual agreements have been satisfied.

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