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Your Guide to Compulsory Acquisition

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Your Guide to Compulsory Acquisition Your guide to compulsory acquisition Contents Introduction Introduction 1 This guide has been prepared to assist land owners, tenants, businesses and licence holders affected by compulsory land acquisition and seeks to: What is compulsory acquisition? 2 » explain some of the processes associated with compulsory land acquisition What is an acquiring authority? 3 » explore some of the types of compensation What rights does an acquiring authority have? 3 » highlight legal obligations Can I stop a compulsory acquisition? 3 » advise how Hunt & Hunt can assist Three stages of compulsory acquisition 4 The aim of this document is to provide an overview of the compulsory acquisition process and to outline the avenues and options available to: Stage 1 – Early planning 6 » those who are involved in a compulsory acquisition Stage 1 facts 7 » those who think they may be affected by a future compulsory acquisition How Hunt & Hunt can help 7 Stage 2 – Identifying future acquisitions 8 What is the impact of a PAO? 8 Stage 2 facts 8 How Hunt & Hunt can help 9 Stage 3 – Acquisition process commences 10 Who can claim? 10 What am I entitled to? 10 Compensation 12 Resolving Claims 12 Stage 3 facts 13 How Hunt & Hunt can help 13 Can I deal with this myself? 14 Acquisition timeline 16 Glossary and Legislation 18 Compulsory acquisition experience 20 The information contained herein is intended to provide general information in summary form, current at the time of publication. It does not constitute legal advice or a substitute for legal advice and should not be relied upon as such. Hunt & Hunt | Compulsory acquisition | Page 1 What is an acquiring authority? Can I stop a compulsory What is compulsory An acquiring authority is a body that has acquisition? been granted power to acquire land for Generally, it is not possible to stop a a specific purpose pursuant to the Land compulsory acquisition. However, in acquisition? Acquisition and Compensation Act 1986. some instances concerns raised about an An acquiring authority could be: acquisition have led to a different outcome. In simple terms, it is the compulsory purchase of all or part of your land by a government or Examples include the Western Highway » VicRoads statutory authority. It often affects land owners, tenants, businesses and licence holders. project and more recently the East West » A rail authority Link proposal. In these cases, appropriate » A government department questions were raised and variations were Common examples include: » A services company (e.g. water, power, etc.) made to the infrastructure projects. » A municipal council » A family home acquired to build a Other examples of compulsory acquisition Our partners have previously acted for new road can include easements on your land which What rights does an acquiring groups that form opposition to proposed » A tenant’s rental property acquired to allow some access to your property and the authority have? infrastructure developments. Some examples widen a road placement of overland / underground: The ‘Acquiring Authority’ is granted planning include unChain St Kilda (in relation to the » A cattle farmer’s property acquired to » Electrical transmission towers / lines permission by the government to mark St Kilda Triangle development) and Lower build a new freeway » Water / sewerage pipes certain properties for future acquisition so Our Tracks Incorporated (in relation to the » Part of a vineyard acquired for a water » Gas pipelines they can be used for a public purpose. proposed Sky Rail Project). easement » Access roads » A restaurant business acquired for The acquiring authority can acquire: Before the acquisition process commences, » Other infrastructure a revitalised town centre the acquiring authority may approach you » All of your land » A house and business acquired for with a request to reach an agreement for the » Some of your land a new airport runway sale of the affected land (i.e. to buy the land » The right to use some or all of your land from you rather than taking it). The process (e.g. an easement) may be referred to as voluntary purchase. Structures or developments situated on the This option may be beneficial to you, land (including houses, gardens and sheds) however it is advisable to ensure that you may also be acquired. are aware of all your rights and obligations before making a decision. Page 2 | Compulsory acquisition | Hunt & Hunt Hunt & Hunt | Compulsory acquisition | Page 3 Three stages of compulsory acquisition There are three stages to the acquisition process: Stage 1. A public reservation is proposed (usually for infrastructure projects). Various plans and feasibility studies are undertaken to determine whether and how to proceed. Stage 2. A reservation in a planning scheme is usually made by placing a Public Acquisition Overlay or Project Area Designation (PAO for convenience) over the relevant portion of land. Stage 3. When the proposed project is ready to proceed, the acquiring authority will commence with the acquisition (this may be a number of years after the placement of the PAO). Then, the formal acquisition process and your claim will proceed. 1 1 Early planning Identifying 2 future acquisitions Acquisition process commences 3 PAO Page 4 | Compulsory acquisition | Hunt & Hunt Hunt & Hunt | Compulsory acquisition | Page 5 Stage 1 facts How Hunt & Hunt can help Stage 1 – » Depending on the size of the proposed » We can help you determine how the project, this stage can take a number proposed project may impact you of years » We are experienced in preparing or Early planning » Well advised action may enable assisting clients to raise objections. We can objections to be raised or alternative identify some of the unexpected long term This early planning phase is usually undertaken in the background and may be without outcomes to be sought impacts of raising these issues to avoid the knowledge of potentially affected owners. Planning commences when a project is » The acquiring authority may contact reducing or affecting your (future) claim conceptualised, and involves a number of feasibility studies and plans. It may involve public you to negotiate plans for the proposed » Whether or not you have been contacted consultation to determine the future of the project. acquisition by the acquiring authority, we can provide » It can involve a number of planning and advice regarding your potential claim The planning phase ends when a decision is made about whether to continue to the next zoning issues in addition to potential and the advantages and drawbacks of a stages. Sometimes the decision is made not to proceed at all. compulsory acquisition of property negotiated acquisition » You may not be aware that a property » If involved at this early stage, we can could be affected assist you in making decisions about selling or improving your property » We can maintain open lines of communication to inform you of developments and what you can expect in the following acquisition stages » We can review any proposed agreement with the acquiring authority as it may affect you in the future » We explain and manage the entire process for you, so you can choose your level of involvement Page 6 | Compulsory acquisition | Hunt & Hunt Hunt & Hunt | Compulsory acquisition | Page 7 How Hunt & Hunt can help Stage 2 – Identifying » We are able to determine if your property is affected by a PAO » We can make enquiries about anticipated future acquisitions project outcomes and timelines » We can work with you to assess your Once the feasibility of the project has been Stage 2 facts available options and possible future determined and the intention is to proceed, » You may not be aware that a PAO impacts the acquiring authority usually places a affects a property you own, rent, or are » We can assist in the identification of your ‘Public Acquisition Overlay’ (PAO) over the interested in relevant compensation claims properties affected by the project. » A prospective purchaser or financial » We are adept at providing advice about A PAO is a planning control which identifies institution holding security may become the effect of other parties’ potential an area of land for future potential aware of a PAO compensation claims compulsory acquisition. A PAO does not » A PAO may be in place for many years » We can maintain open lines mean that the land will definitely be acquired, (even decades) before being acted upon. of communication enabling but that it may be acquired in the future. Some PAOs may never be acted upon us to keep you abreast of » Sale of an affected property may trigger a It is not mandatory for the acquiring developments and inform you compensation claim authority to notify landowners personally about what you can expect in » Refusal of a planning permit for about a PAO over their property until the the following acquisition stages an affected property may trigger a next stage of the acquisition. » We are well placed to review compensation claim any proposed agreement with What is the impact of a PAO? » Any compensation payments are noted the acquiring authority as it may on title and can affect future landholders It may affect the purchase or sale of a affect you in the future property or restrict your ability to develop the » We explain and manage the land. Therefore, the PAO may affect: entire process for you, so you can » The value of the land upon sale choose your level of involvement » An owner’s ability to sell the land » An owner’s ability to obtain planning permission for the land » The intended use of the land » A purchaser’s ability to claim compensation when the land is acquired Page 8 | Compulsory acquisition | Hunt & Hunt Hunt & Hunt | Compulsory acquisition | Page 9 Market value – the amount that would have been paid to the claimant upon sale at Stage 3 – Acquisition the date of NOA (subject to strict legal and valuation guidelines).
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