Value of compulsory acquisition by VicRoads

The Supreme Court of Victoria case of McCann v Roads Corporation considered the valuation of land compulsory acquired by the Roads Corporation to build a bypass road near Geelong.

The question was whether the land should be valued as agricultural land or as a potential residential development.

The Court accepted expert evidence that the power line easement formed a “defensible boundary to prevent uncontrolled urban sprawl”.

The answer to the preliminary questions is as follows:

For the purposes of assessing market value of the land in the ‘before’ situation under the Land Acquisition and Compensation Act 1986 (Vic), what would have been the zoning of the land or any part of it at the acquisition date?

Answer: the whole of the land would have been zoned Rural without any public purposes overlay for the purpose of the Bypass.

If the answer to question (1) is that the land, or any part of it, would not have been zoned for residential use at the acquisition date:

What were the prospects of the land, or such part of it, being re-zoned for such use at any time after the acquisition date?

If there was any such prospect of the land being re-zoned for residential use, when would such re-zoning be anticipated to occur?

Answer: the land east of the power line easements was ripe for residential rezoning within two years subject to a residual risk of 20 per cent that this would not occur for a period of five years and subject to the provision of a riverside buffer zoned Public Reserve and Conservation Zone.

http://www.austlii.edu.au/au/cases/vic/VSC/2011/96.html

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