The developer of the Marian College site is asking the council to reduce infrastructure fees on his project.
Nicolas Daoud and Company Pty Ltd is transforming the former Catholic school in Clinton Street into serviced apartments, villas and a commercial area.
Councillors on Tuesday will be asked to consider whether to reduce project fees for water, sewer and stormwater from $690,573 payable under the new rate to $428,768, that would have been charged under an old regime.
Planners are recommending against the discount.
The request comes five months after councillors penalised the developer for breaching consent conditions. At that time, planners discovered an apartment block had encroached on the adjoining historic convent building. Councillors penalised the company by requiring paving and landscaping treatment. Some said they had been "greatly let down" by the breach.
Now a new problem has arisen. In November, 2017, the council adopted a new plan for levying infrastructure fees. In many cases it increased costs for developments. However, councillors decided the old rate would apply to applications lodged before the new regime's adoption, but only if the money was paid before June 30, 2018.
Many developers took advantage of the opportunity, some taking out loans in the process, a report to Tuesday night's meeting stated.
But the Marian College developer's request for a reduction came well after the deadline, planners said. It means paying an extra $261,805.
"...To ensure fairness to the developers that paid upfront, this developer should be charged at the current rate as per the council resolution," the report states.
The project has undergone several modifications since a DA was first approved in December, 2014. Planners said if Mr Daoud had originally submitted the current configuration of apartments and villas, he would have paid $350,199 in water, sewer and stormwater fees.
Meantime, council general manager Warwick Bennett and senior management met with the developer in recent months to negotiate a paving and landscape plan for Bourke and Clinton Streets, adjoining the project.
This was finalised earlier this month. Councillors will be asked to sign off on the plan, which departs from their decision last October, following the breach.
It proposes a slightly different paving pattern on Clinton Street from that in Auburn Street. In addition, no paving would be undertaken on the Bourke Street side. The report stated that it would detract from this frontage.
"A closer analyis of this area suggested that additional paving in this area would negatively contrast with the imposing brick wall, the brick wall of the chapel and the convent that combine to dominate the Bourke Street frontage and the Clinton Street intersection," planners wrote.
Instead, grass street trees and restoration of the grass would soften its appearance.
Mr Daoud will be required to submit a modification for these works. He has already submitted a modified DA to address other matters, such as a drop-off point in Clinton Street.
Planners recommend that Mr Bennett be given delegated authority to determine this application to enable "timely processing."
They said the project was fast approaching "occupation phase."
Tuesday's meeting starts at 6pm at the council chambers and will be live-streamed on the council's website.
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