Are There Limits To NSW Councils´ Ability To Compulsorily Acquire Land?
The High Court has confirmed that NSW councils cannot compulsorily acquire land under the Local Government Act 1993 (NSW) (LG Act) when that land is earmarked for re-sale. In this case the consequence of the High Court’s decision has significant implications for the Public-Private Partnership (PPP) (R & R Fazzolari Pty Limited v Parramatta City Council [2009] HCA 12). At the heart of the case was a plan by the Parramatta City Council to redevelop the square outside its council chambers. It entered into a complex development agreement with private parties, which provided for highly sophisticated payment arrangements between the private party and the Council, and the transfer of various properties (including Fazzolari’s and Mac’s). Initially these properties were to be held on trust by the Council for the benefit of the private party, but the legal interest in the properties would later be transferred to the private party. To do all this the Council sought to compulsorily acquire Fazzola
