Peninsula Kingswood Country Golf Club is sueing a former developer for a $25 million ‘bonus’ over the sale of its golf course for a controversial housing project in Dingley Village.
The Supreme Court of Victoria lawsuit comes as protesters gathered to oppose plans for a 941-dwelling estate at the former Kingswood Golf Course on Sunday 27 July.
Planning Minister Sonya Kilkenny is expected to make a decision this year.
According to the golf club’s statement of claim, AustralianSuper Residential Properties agreed to buy Kingswood Golf Course for a $70 million ‘interim payment’ on settlement in 2014.
The ‘final’ $25 million payment was to be allegedly made after the 54-hectare course was rezoned to a general residential zone.
However, the rezoning failed to occur by an agreed sunset date in 2022. As a result, the $25 million was not paid.
Since the 2014 sale, residents, Kingston Council and MPs had opposed the project for 824 dwellings on the flood-prone site.
Arguments included the loss of vast green space, increased flooding risk, and traffic congestion.
Last year, AustralianSuper sold the site to another developer Satterley – which unveiled the current, contentious plan for greater housing density.
Peninsula Kingswood argues in its statement of claim that AustralianSuper didn’t “use its best endeavours” to achieve rezoning “as soon as practicable” and ahead of the sunset date.
The club – which has relocated to Skye Road, Frankston – claims that AustralianSuper delayed preparing draft planning amendments for Kingston Council.
It had also failed to alter the draft amendment in response to the opposition of “the majority” of Kingston councillors and “the number of negative submissions” from the public.
It had also failed to alter its proposed amendment for the Planning Minister and a Standing Advisory Committee in 2021 – given it was “reasonably foreseeable” that the committee was “unlikely to recommend the immediate rezoning … or the grant of a planning permit”.
The next hearing of the case is scheduled at the Victorian Supreme Court in September.
More on the protest, turn to page 14.
