Out of sequence development fails: Court rejects staged subdivision in growth corridor despite residential zoning
By Nadia Czachor, Krystal Cunningham-Foran and Innes McDiarmid
Residential zoning and inclusion in an identified growth corridor insufficient to overcome material noncompliance with sequencing, infrastructure and ecological assessment benchmarks.
In brief
The case of Mount Peter Road No 2 Pty Ltd & Mount Peter Road Pty Ltd v Cairns Regional Council [2026] QPEC 9 concerned an appeal to the Planning and Environment Court of Queensland (Court) against a refusal by the Cairns Regional Council (Council) of a development application for a preliminary approval for reconfiguring two adjoining lots into 539 residential lots over 41 stages over approximately 20 years (called Edenbrook) at Mount Peter, Queensland.
Under version 3.1 of the CairnsPlan 2016 (CairnsPlan), the land is relevantly in the Low-Medium Density Residential Zone, subject to a number of overlays, within the Mount Peter Local Plan Area and approximately 450 metres outside of the priority infrastructure area under the Local Government Infrastructure Plan (LGIP) (at [44]). Mount Peter is recognised as a priority urban growth corridor for Cairns (at [43]).
Although the CairnsPlan envisages residential development on the land, the Court observed material noncompliance with assessment benchmarks relating to sequencing, infrastructure delivery, traffic, subdivision design and terrestrial ecology, which could not be adequately cured by conditions, and dismissed the appeal (see [117], [154], [192], [224] and [225]).
Preliminary approval does not reduce the need to assess real impacts
The Court accepted that a preliminary approval does not authorise assessable development to be carried out and that later development permits are required before the proposed reconfiguration can occur (at [25]). However, the proposal is not merely conceptual because it includes a specific layout of proposed lots, roads, revegetation areas, detention and bioretention basins, parks, linear parks and staging. The Court described the proposal as a "…significant residential development with a specific and precisely defined reconfiguration" which must be assessed for its impacts and compliance with the assessment benchmarks (at [27]).
This finding is important because the Appellant could not defer fundamental questions of traffic impact, infrastructure delivery and ecological impact to later development applications.
Compliance with a code is achieved in one of two ways
The parties disagreed about how compliance with a code is achieved under section 5.4(3)(a)(iii) of CairnsPlan. The Council submitted three alternative pathways, being compliance with the purpose and overall outcomes, compliance with the performance outcomes or compliance with the acceptable outcomes, whereas the Appellant submitted two pathways, being compliance with the purpose and overall outcomes, and either the performance outcomes or the acceptable outcomes (see [49] and [51]).
The Court preferred the Appellant's construction based on the ordinary grammatical construction of the provision and that, in the CairnsPlan, a word followed by ";" or ", and" is considered to be "and", but ultimately this did not assist the Appellant due to the significant noncompliances with the relevant assessment benchmarks in multiple codes (see [48], [50], [62] and [222]).
Strategic framework is context in code assessment, not an assessment benchmark
The Council accepted that, for code assessment, a strategic outcome in a planning scheme is not an assessment benchmark, but submitted that the Strategic Framework is nevertheless relevant because notes to provisions of the Mount Peter Local Plan Code (MPLP Code) and Reconfiguring a Lot Code refer to the Planning Scheme Policy – Structure Planning (at [40]).
The Court held that the Strategic Framework can provide context when construing the relevant codes, but that no assessment is to be carried out against the Strategic Framework itself (at [41]). The issue for determination is whether the proposal complies with the codes or can be conditioned to comply with the codes (at [42]).
Development is isolated from existing urban development and out of sequence
The MPLP Code envisages an integrated approach to development, with land to be developed "sequentially from the north", which the Court regarded as being connected to the timely and orderly provision of infrastructure, facilities and services for a new community (see [81] to [83]). Despite the land being zoned as residential and nearby land having development approvals, the Court accepted that the land is presently isolated from urban development and in a rural setting because the land to the north has not yet been developed (at [85]).
Stages 1 to 33 of Edenbrook are located south of Sandy Creek and are proposed to be developed between 2028 and 2045. The Court found that early development would occur centrally on the land, more than one kilometre from the existing urban form, and that the northern part of the land will not be developed until stage 34, which is anticipated in 2042 (at [86]).
The Court held that the propsal is "not a small or inconsequential extension of the urban front" and is out of sequence because it requires trunk infrastructure in a manner inconsistent with the timing and efficient delivery contemplated by the LGIP, particularly for water, wastewater and transport infrastructure in respect of which the Court found as follows (see [87], [88] and [115]):
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In respect of water infrastructure, the proposal includes to bring forward the timing of planned water mains in circumstances where the ultimate location of the proposed water mains has not been considered and no cross-sections demonstrate that the infrastructure could be accommodated in the road reserve (see [105] and [106]).
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In respect of wastewater infrastructure, the Court accepted that storing wastewater onsite and trucking it out can be normal in initial development stages, but was not persuaded that the proposal, which would see limited connection to the existing wastewater network, is efficient or adequate in the absence of a plan for connection to the wastewater network (see [110] to [113]).
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In respect of transport infrastructure, the Court was not persuaded to rely on a traffic impact assessment relating to an earlier iteration of the proposal and could not consider the impacts on the road network, what transport infrastructure was required, whether that infrastructure could be accommodated in the road reserve or when it would be required absent a report for the whole current proposal and rejected the Appellant's attempt to defer the issue to later development applications (see [149] and [150]).
The Court held that the noncompliances with respect to water and wastewater infrastructure could not be cured by conditions, including by a condition requiring payment of costs associated with bringing forward infrastructure. With respect to transport infrastructure, the Court could not assess impacts because of the lack of appropriate reporting and therefore found that the development did not contribute to a safe and efficient transport network (at [152]).
Ecological values require more than the proposed buffers
The land contains significant ecological values in the riparian zones of nearby creeks, including matters of local, state and national environmental significance, endangered regional ecosystems, threatened ecological communities and habitat for threatened or migratory fauna species (see [163] and [164]).
The Court accepted that the cessation of the existing agricultural use, removal of cattle, removal of dumped waste, fencing of creeks, weed management and revegetation would provide ecological benefits (see [166], [188] and [189]). The Court also accepted that impacts on two threatened plant species could be adequately mitigated by conditions (at [174]).
However, the Court preferred the Council's ecological evidence that roads, pathways and developable lots within a 50 metre buffer to areas mapped as MSES Regulated Vegetation is contrary in the purpose and overall outcomes of the Natural Areas Overlay Code and was not satisfied that the proposal adequately mitigates direct and indirect terrestrial ecology impacts on the endangered regional ecosystem and significant environmental features (see [190] to [191]).
This noncompliance could not be cured by simply imposing a condition requiring a 50 metre buffer because such a condition would require redesign of the proposal, including the removal or relocation of roads, pathways and developable lots, and the Court emphasised that it is "….tasked with assessing the proposal, not redesigning the proposal" (at [192]).
Water quality and groundwater and stormwater issues capable of being conditioned
The Court accepted that the proposal would not meet the water quality objectives applicable the area. However, no development on the land could comply with those objectives because of local geology and existing creek water quality conditions arising from agricultural use (at [217]). The Court regarded that noncompliance as technical and not material because the developed land was likely to produce better water quality outcomes than the existing agricultural use, and stormwater quality could be adequately ameliorated (at [217]).
The Court also found that the development could be conditioned to minimise impacts arising from altered stormwater quality or flow (at [221]). The stormwater outlet systems present an ecological risk, particularly because construction would require clearing for outlets. However, the Court accepted that appropriate conditions could require disturbance plans, cut and fill plans, tree retention, revegetation and weed removal (see [204] to [212]).
Discretion not exercised despite residential zoning and potential benefits
The Court found noncompliance with the relevant CairnsPlan codes, the purpose of the LGIP and provisions of the State Planning Policy 2017, which it held are significant due to the material consequences for safe and efficient delivery of water, wastewater and transport infrastructure, integration of the new community and future development of the locality (see [222] to [224]).
The Court was not persuaded that the benefits of approval, including cessation of the agricultural use, are significant enough to outweigh the reasons for refusal. Even if the ecological issues could be conditioned or redesigned to achieve compliance, the infrastructure noncompliances and out of sequence nature of the proposal are material and warrant refusal (at [224]).
Conclusion
The Court dismissed the appeal and confirmed the Council's decision to refuse the development application (at [225]).
Key points
The following key matters arising from the Court's findings are significant and important:
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A preliminary approval for a subdivision proposal may require close assessment of the proposal's actual impacts, particularly where the layout, staging and infrastructure arrangements are specific, which requires an applicant to be armed with the technical expert evidence to address the Court's queries about relevant impacts.
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Residential zoning and inclusion in an urban growth area is not likely to overcome material noncompliance with assessment benchmarks relating to sequencing, infrastructure delivery, transport safety and ecological protection.
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Out of sequence development can be refused where it would require inefficient or disorderly delivery of trunk infrastructure, even if the land is intended for residential development.
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Ecological benefits such as the cessation of an agricultural use and revegetation may be insufficient to overcome noncompliance where proposed buffers do not adequately protect significant ecological values.
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The role of the Court in a planning appeal is to assess the proposal the subject of the development application and not to redesign the proposal to comply with the relevant assessment benchmarks.
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Whilst code assessment does not require an assessment against the strategic outcomes in the relevant strategic framework, they can provide context when construing the relevant assessment benchmarks in the codes for the proposed development.