The University of Wollongong could be forced to pay more towards the cost of the city’s infrastructure, as the council moves to axe development fee exemptions for tertiary education providers.
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Since 2006, the university has been exempt from paying more than $1.6 million in Section 94A fees. The fees are applied to developers across the city and used to offset the cost of public facilities, like roads and paths.
But now, Wollongong City Council staff have recommended a change in their development contributions policy, to remove the fee exemptions for all works except those “directly required by the main function of the educational facility”.
They suggest a partial exemption may be allowed for “support” infrastructure like accommodation, car parks, sports facilities and food courts, but say no exemptions should be made for shops, supermarkets, commercial centres and child care centres.
Lord Mayor Gordon Bradbery said he was in favour of the policy change, as it would be more “equitable”.
Earlier this year, the university fought back against paying a contribution on its planned IGA supermarket, engaging lawyers when the council tried to impose developer fees of $7,327.10.
“Up until this point the council has waivered these contributions for the university, but when the university is now entering into commercial operations this is competing with other people who do have to pay,” Cr Bradbery said. “So if someone else was building an IGA, they would be up for these costs so the idea is that we’re trying to be fair to all commercial interests.”
However, Cr Bradbery said the issue was complex, as the university made a significant contribution towards the city and local economy.
Likewise, a university spokesman a highlighted a number of investments the institution had made, despite not paying the developer fees.
“UOW continues to invest in infrastructure that benefits the local community including contributing more than $1.2 million for the recently completed $1.4 million Northfields Avenue bus terminus upgrade, making free shuttle bus services available for local residents and providing public access to university facilities such as the library, sports facilities, hall and Early Start Discovery Space,” he said.
He also said the university planned to partner with the council to relocate overhead power lines along Northfields Avenue underground, and install new kerbing, guttering and footpaths.
If supported by a majority of councillors next Monday, the policy changes will be placed on public exhibition for feedback before they are adopted.