A dispute between developers and Logan City Council has put a federal-government funded “urgent health facility” on hold.
The $33 million project, opposite Logan Hospital in Meadowbrook, was developed to help slow ramping and provide care to patients of one of the country’s busiest emergency departments.
About half of the building, adjacent to the Meadowbrook Shopping Centre, is slated to be used by the state government’s Metro South Health for emergency care.
The other half is expected to be made available to health providers.
It was due to be opened this month, but a court battle must now play out before that can happen.
The developers of the project, OPD Developers Pty Ltd and Meadowbrook Health Pty Ltd argue they shouldn’t have to pay about $700,000 in infrastructure charges.
Logan City Council has long touted the Meadowbrook area as a potential jewel in the city’s crown, a precinct friendly to health providers which in turn would bring quality services and employment to the region.
To date, there have been multiple hiccups.
Australian Unity, a superannuation fund manager, was planning to build Meadowbrook Private Hospital and announced the city’s first private hospital in 2022.
However, it cited high engineering costs associated with building on a flood plain as a primary reason it would not go ahead with construction.
Council sources say Australian Unity had already agreed to pay costs to connect two adjacent roads, to accommodate increased traffic to the area.
Regardless, the project was axed.
The latest development has now been built under the auspices of a state government planning classification known as a “Ministerial Infrastructure Development”.
It is the same classification granted to schools and other state government projects deemed to be in the community’s interest.
MIDs, as they are known, do not require a development application to council. Plans do however, require sign off from council’s planners – despite already being given the go-ahead to open by the state government a number of weeks ago.
It is believed council’s planners argue developers owe Logan City Council about $700,000 in local infrastructure charges for “street access”, in addition to money already paid for connection to water and sewerage.
“Council takes a grim view of for-profit developers seeking to avoid the normal process and bypass paying their fair share towards infrastructure,” mayor Jon Raven said of council’s approach to MIDs being managed by private developers.
“Our community expects developers to contribute to the cost of infrastructure, otherwise it will increase their rates. Why should rates go up to subsidise developer profits?”
It is understood council charges all private developers for headworks, regardless of whether they’re classified as a MID or not – as if they are going through the normal development application process.
And therein lies the dispute.
Meadowbrook Health’s James Head has been overseeing the construction of the development, in regular discussion with Metro South Health.
“Our legal advice tells us that because this project was classified in the public interest as a MID, there was no development application required and that there would therefore be no headworks charges,” Mr Head said.
“It is unfortunate that this valuable project is being held up by council. The project has been completed for some weeks, and it is now being stalled because council refuses to seal the sub-division.”
Mr Head said developers of the Meadowbrook Urgent Care Facility had offered to put disputed funds into a trust, pending the result of the current court case. If council wins, it would be paid the money owed, and if the developer wins, money would be returned.
Council has refused the offer, meaning the court case must settle before the health facility can be opened.
The case has been set for hearing on April 23.
Lawyers in the current case have cited a precedent from 2023, in which it was ruled Logan City Council could charge infrastructure charges for a privately-developed MID.
However, the matter was settled out of court before an appeal could be heard.
