Guideline Department of Environment and Heritage Protection No prudent and feasible alternative This guideline has been prepared under section 173 of the Queensland Heritage Act 1992. Part 1 – Introduction Purpose This guideline describes the processes and criteria for determining whether there is no prudent and feasible alternative—under the Queensland Heritage Act 1992 sections 68 and 71—to proposed development that will destroy or substantially reduce the cultural heritage significance of a Queensland Heritage Place. It applies to owners and others seeking approval to carry out this type of development and to the assessors of these applications (the assessing authority). Context The Queensland Heritage Act aims to conserve Queensland’s cultural heritage for the benefit of the community and future generations. However, in exceptional circumstances, demolition or removal of a heritage place—or other action which substantially reduces cultural heritage significance—may be unavoidable. Under these circumstances there are requirements for the assessing authority to consider whether there is no prudent and feasible alternative to the proposed development. The process for assessing Queensland Heritage places differs depending on whether or not the applicant is the State. Where the applicant is the State, the Queensland Heritage Council has responsibility for the assessment and making a recommendation to the relevant minister. For all other applicants, the Heritage Council does not have responsibility for the assessment. However, in the case of developments that will destroy or substantially reduce the cultural heritage significance of a Queensland Heritage Place, it is the department’s policy that the assessing authority must seek the Heritage Council’s advice. The assessment manager or concurrence agency may only approve such applications if, on advice from the Heritage Council, they are satisfied there is no prudent and feasible alternative to the proposed work. Great state. Great opportunity. Since a primary purpose of the Queensland Heritage Act is to conserve heritage places, the assessment of applications to carry out work that will destroy or substantially reduce cultural heritage significance is particularly stringent. Applicants should investigate a full range of alternatives to the proposed work. The investigations need to be thorough and rigorous and incorporate expert assessments where relevant. In general, an alternative will only be considered to be not prudent and feasible if it would be extraordinarily difficult to implement. The specific assessment principles are described in more detail in Part 2. Health, safety and economic factors must be considered in every application. Other matters may be included in the evaluation of alternatives if considered relevant by the assessing authority. Note that where a principle applied in this guideline has been demonstrated by case law, excerpts of the relevant cases are provided in Appendix 1 – Case law. Department of Environment and Heritage Protection Part 2 – Application requirements Provide sufficient information Consult the assessing authority before making an application All applications should include enough information to enable the assessing authority to properly assess alternatives. Note that information provided may be subject to public scrutiny under the Right to Information Act 2009. Applications that propose to destroy or substantially reduce the cultural heritage significance of a heritage place are not routine. Before applying, consult with the assessing authority. Discuss how the application will be assessed as well as the information and public engagement that may be required. If an application contains insufficient information, the assessing authority can formally request more supporting evidence, including expert reports if necessary. The assessing authority may also commission independent experts to prepare reports or assess any information provided. The department’s ‘Guideline: Preparing a heritage impact statement’ and ‘Guideline: Heritage development’ provide advice on how to assess the impact of a development proposal on a heritage place. Public engagement Investigate alternatives The application must investigate sufficient options to demonstrate there is no prudent and feasible alternative to the proposed work. These alternatives must: • include the option of not carrying out the proposal (doing nothing) • include the optimum development that would cause the minimum impact on cultural heritage significance (e.g. for large or complex sites, it may be possible to minimise impact on cultural heritage significance by incorporating part, or all, of the heritage building into the proposed development rather than building an entirely new structure) • include the whole of the proposed development, not just the part occurring in the heritage place (e.g. consider development options away from the immediate environs of the heritage place—such as funding maintenance of the heritage building which are separate from other elements of the development) • consider options outside the confines of the proposed development • include sale, lease or other form of disposal of all or part of the property if this may favour or aid conservation. For every alternative, investigate all means of avoiding or mitigating impacts on cultural heritage significance. Great state. Great opportunity. Unless otherwise advised by the assessing authority, public engagement is required to assess the public benefit of the proposed development and its impact on the social significance of the Queensland Heritage Place. Social significance is an aspect of cultural heritage significance under the Queensland Heritage Act. Public engagement should involve: • setting up a process and timetable for dialogue about the proposed development with people and organisations with an interest in the heritage values of the place • identifying relevant people and organisations, informing them about the development proposal, and offering to engage them in discussion • sharing information and engaging in dialogue aimed at reaching a shared position • documenting the engagement process and recording community comment (this information should be included with the application). The assessing authority will also place a notice in the local newspaper of the area, inviting the community to comment on the proposal. Community comment will be considered by the assessing authority in its assessment of the development application. Department of Environment and Heritage Protection Part 3 – Assessment of applications Assessment principles In determining whether there is no prudent and feasible alternative to the proposed development, the first priority will be conserving the cultural heritage significance of the heritage place.1 Nevertheless, assessing alternatives remains a value judgment. The degree of impact on cultural heritage significance may be assessed in relation to the social benefit of the proposed development, based on the individual circumstances of a place.2 The potential social benefits may be gauged through public engagement (see Part 2 – Application requirements, public engagement). Previous developments will also be taken into account. An application may be viewed less favourably if the cultural heritage significance or economic viability of a place has been reduced through the cumulative effect of successive developments—particularly if the original lot containing the heritage place has been subdivided after listing. For an alternative to be assessed as not prudent and feasible there must be an extraordinary or unacceptable: • economic cost to the State, the community, a section of the community, or an individual • environmental or social disadvantage • technical impracticability • risk to public health or safety, or • other unusual or unique circumstances.3 The assessment of alternatives is not a simple weighing of economic considerations or convenience. An alternative merely costing more, or being less profitable, is not sufficient grounds to deem this alternative ‘not prudent and feasible’.4 For strata or community title subdivisions, the assessing authority may impose a condition requiring other lots in the scheme to contribute to maintaining the lot containing the heritage place. Inability to find a current use for a heritage place is not by itself adequate grounds for demolishing or removing a heritage place. For example, it may be prudent and feasible to leave a heritage place vacant for a time if: • it is a heritage place which is not a building • holding, maintenance and security costs are reasonably low • it is not reasonable to expect that the place should provide a financial return, or • there is potential for future changes in market or local conditions which will make another compatible use practical and feasible. Depending on circumstances, gradual deterioration of a place (such as a ruin) may not detract from its cultural heritage significance. Great state. Great opportunity. Compulsory considerations Unacceptable health or safety risks may be caused by contamination, structural instability, or other factors. Rectifying these issues may also have extraordinary or unacceptable economic implications. Health and safety When there is a health or safety risk, the following information may be required to enable assessment of the alternatives: • safety risk assessments • evidence that the place has been adequately maintained. • assessments by qualified structural engineers of the technical feasibility and practicality of making a structure safe or, if a use is necessary, serviceable. It may become impractical to retain a building if a very large proportion of the structure is unserviceable. Alternatively, replacing a high proportion of the significant fabric may substantially reduce the cultural heritage significance of the place and make conservation unjustifiable. An application will not be viewed favourably if there is evidence that essential maintenance has not been undertaken on a regular basis. Under section 87 of the Queensland Heritage Act, owners are required to carry out essential maintenance on their property. Essential maintenance should include: • ensuring the property remains well drained and watertight • performing pest inspections • re-fixing loose roof or wall cladding • removing potential fire hazards • maintaining existing fire management systems and security • securing openings in an unoccupied building • shutting down electricity or gas services to an unoccupied building. See Appendix 2 – Some practical issues. Economic factors The assessing authority may require financial information if the cost of heritage conservation is an issue. This may include: • specific financial information such as quotations or estimates • expert valuations or cost plans • (If this valuation differs from that of the Valuer-General’s, provide a justification) • projected profit and loss statements • a full cost-benefit analysis (see Appendix 3 – Cost-benefit analysis, recommended requirements). Department of Environment and Heritage Protection Part 4 – Further information To discuss your development plans with one of the department’s heritage officers before making an application phone 13 QGOV (13 74 68) and ask to speak to a heritage officer in the region where the heritage place is located. The department’s heritage publications are located on the heritage conservation pages of the website at www.ehp.qld.gov.au. Endnotes 1. The Act, s2(1); Yates, para 101. 2. Kidd, paras 31, 47, 48 and 49; Merri, para 62; Kierath, para 55. 3. 4. Friends of Merri Creek Inc v Meakins [2003] FCA 671, paras 51 and 63 (this reference applies to all of the above points). Kidd, para 47; Yates, paras 119 and 121; The Honourable GD Kierath, Minister for Heritage: Ex Parte City of Fremantle [2000] WASCA 156, para 55. Prepared by: Heritage Branch, Department of Environment and Heritage Protection © State of Queensland, 2013 The Queensland Government supports and encourages the dissemination and exchange of its information. The copyright in this publication is licensed under a Creative Commons Attribution 3.0 Australia (CC BY) licence. Under this licence you are free, without having to seek our permission, to use this publication in accordance with the licence terms. You must keep intact the copyright notice and attribute the State of Queensland as the source of the publication. For more information on this licence, visit http://creativecommons.org/ licenses/by/3.0/au/deed.en Disclaimer This document has been prepared with all due diligence and care, based on the best available information at the time of publication. The department holds no responsibility for any errors or omissions within this document. Any decisions made by other parties based on this document are solely the responsibility of those parties. If you need to access this document in a language other than English, please call the Translating and Interpreting Service (TIS National) on 131 450 and ask them to telephone Library Services on +61 7 3170 5470. This publication can be made available in an alternative format (e.g. large print or audiotape) on request for people with vision impairment; phone +61 7 3170 5470 or email [email protected] For more information about Queensland heritage matters visit www.ehp. qld.gov.au Prepared July 2013 #30250 Great state. Great opportunity. Department of Environment and Heritage Protection Appendix 1 – Case law Australian Conservation Foundation v Minister for Resources (1989) 19 ALD 70 pp 75–76: However, legislation which seeks to protect the environment must be read in a way which promotes that end and not so as to frustrate achievement of proper protection.…... Re Yates Security Services Pty Ltd v Honourable Paul Keating [1990] FCA 432 Paddy’s Market in Sydney was a Federation period brick and stone building, listed on the register of the National Estate. Section 30 of the Australian Heritage Commission Act 1975 prohibited Ministers from taking actions adversely affecting a place on the register unless there was no prudent and feasible alternative. Paul Keating, the Commonwealth government treasurer, authorised the acquisition of a lease by a foreign company for the purpose of a multi-storey development. The Federal Court concluded that Mr Keating’s decision was invalid, because there had not been a proper investigation of the alternatives. Excerpt from judgment: 101. A similar approach should be taken to the interpretation of s.30 of the Australian Heritage Commission Act, subsection (4) of that section, which makes clear that various types of executive decisions, including decisions relating to work to be undertaken by others, may constitute the “taking of action” within the meaning of the section; that is, action which is capable of adversely affecting a particular place. So, for example, the section catches a decision to grant financial assistance to a State to enable it to carry out work in a place entered on the Register, notwithstanding that the Commonwealth decision itself could not adversely affect the place. This conclusion is consistent with the view taken by Davies J in Australian Conservation Foundation v Minister for Resources. It appears that counsel submitted to his Honour that the grant of an export licence did not, and could not, in itself adversely affect the national estate. At pp. 75-76 Davies J responded to that argument in this way: “However, legislation which seeks to protect the environment must be read in a way which promotes that end and not so as to frustrate achievement of proper protection. Therefore, when s.30(1) speaks of action that adversely affects a part of the National Estate, it must be read as encompassing not merely action that has a direct adverse impact upon the National Estate but also action which has a tendency indirectly to impact adversely upon the National Estate. The grant of a Great state. Great opportunity. licence which assists the taking of action adverse to a part of the National Estate, which promotes or facilitates that action, is itself action that adversely affects that part of the National Estate.” 116. ….. the critical question for the Treasurer was whether or not there existed a feasible and prudent alternative to approval, so that an investigation of alternatives would have to be made before any approval could be granted. In the absence of an investigation showing that there was no feasible or prudent alternative, the application of the Department’s advice must have led to rejection. Yet, although no investigation had occurred or was proposed, the Board declined to recommend that course. Instead, it recommended an approval, subject to conditions.… 117. The Board’s misunderstanding ….. is reflected also in its second minute. I have already noted the Board’s report that it had contacted the New South Wales government “on whether all prudent and feasible alternative sites and designs had been investigated”. The reference to alternative designs is unexceptionable; in considering whether there was a feasible and prudent alternative to the development proposed for this site, it was essential to consider whether any new development might be designed in a different way. But the reference to alternative sites suggests that the Board started from the proposition that this development had to be accommodated somewhere, and then enquired whether it could be accommodated somewhere else. Except, perhaps, in the case of a development so unusual and important that it would not be feasible or prudent for the community entirely to forego that development, an answer to the question posed by the Board, one way or the other, would not assist the determination of the question whether there was a feasible and prudent alternative to a particular proposed development on a particular site. Except in the postulated case, it would be consistent with feasibility and prudence to forego the development altogether. ….. 119. ….. the Minister was under a duty to be satisfied that there was no feasible and prudent alternative. If necessary, he had to seek out and evaluate information on alternatives, in much the same way as, in Manchester Environmental Coalition, the commerce commissioner had to investigate, and find against, the possibility of a mass transit system. Contrary to a submission put in this Court on behalf of Rockvale, s.30(1) is not satisfied merely by the absence, at the time when the relevant action is being first considered, of an alternative of demonstrated feasibility and prudence. Further, the Board was prepared to accept, as a possible alternative, only a development which was commercially viable after bearing the same land cost. This limitation was imposed in deference to Valtone’s creditors and shareholders; but, as both Overton Park and Wayne County make clear, mere economic considerations cannot determine what is “feasible and prudent” in a statutory context such as this. If s.30(1) were so interpreted it would Department of Environment and Heritage Protection fail its purpose. The most economically advantageous proposal would prevail. ….. 121.…… As the American cases demonstrate, and they only apply the words “feasible” and “prudent” in their ordinary meaning, a proposal ought not to be regarded as infeasible or imprudent simply because it is more costly or less profitable. 122. Furthermore, the Treasurer knew that the Board had not made any more general inquiry about alternatives; perhaps involving yet a different proposal or form of development or leaving the site as it was. Except, perhaps, in a case where a place is in such a condition as to be dangerous, or to constitute a nuisance, to others, the “do nothing” option might ordinarily be thought to be a feasible and prudent alternative to action which will adversely affect a place entered on the national estate Register. But this was not considered. ….. 138. In my judgment, s.30 evinces an intention to ensure that actions by Commonwealth officers do not adversely affect places entered on the Register of the national estate unless a positive conclusion is reached by the responsible Minister that such affectation is, in practical terms, inescapable and all reasonable minimisation measures are taken. As I have already suggested, this objective is central to the statute, there being little point in compiling a Register unless places entered in it are protected, at least from adverse Commonwealth actions. …… The objective which I have identified is one which was adopted in vindication of the public interest, as perceived by Parliament, in protecting places of established heritage value. The Honourable GD Kierath, Minister for Heritage: Ex parte City of Fremantle [2000] WASCA 156 The City of Fremantle requested placement of the Cooperative Grain Silos at North Quay on the Western Australia register of Heritage Places. The Minister decided not to list the silos. The Supreme Court of Western Australia overturned the Minister’s decision. In its judgment the Supreme Court discussed the effect of listing on the register. Excerpt from judgment: 55. Working backwards, in a sense, through the Heritage of Western Australia Act, once a place is entered on the Register, either on an interim or permanent basis, the use of the land is not sterilised but, in broad terms, any action taken in respect of it must either be in accordance with the views of the Heritage Council, or there must be no “feasible and prudent” alternative and all reasonable measures must be taken to minimise any adverse effect. The “feasible and prudent” test is a stringent one, but would appear to Great state. Great opportunity. encompass reference to economic considerations, such as the significance of what is proposed for the place to either the State as a whole, or the community, or a section of it, or an individual. ……. Friends of Merri Creek Inc v Meakins [2003] FCA 671 The Commonwealth government approved funding of a construction project for realignment of the Hume Highway between Craigieburn and the Metropolitan Ring Road, north of Melbourne. The realignment affected grasslands which were entered on the register of the National Estate. The Friends of Merri Creek claimed that the Commonwealth government’s delegate, Mr Meakins, had not properly considered whether there was no prudent and feasible alternative to the nominated route, as required by section 30 of the Australian Heritage Commission Act 1975. However, the Federal Court found that Mr Meakin had properly considered all the relevant alternatives, and dismissed the appeal. Excerpt from judgment: 50. The Supreme Court of the United States ….. in Citizens to Preserve Overton Park Inc v Volpe 401 US 402 (1971), …… consider[ed] ….. the meaning of a “feasible and prudent alternative” in s 4(f). The respondent argued that this language afforded the Secretary a wide discretion to consider a number of factors, including the detriment to parklands, in reaching a decision. The Supreme Court disagreed. The opinion of the court was delivered by Marshall J. He said that the words “no feasible and prudent alternative” required the Secretary to give “paramount importance” to protection of parkland, unless there were levels of cost or community disruption of “extraordinary magnitude”, or other “truly unusual” factors (at 41213). The word “feasible” meant, “as a matter of sound engineering it would not be feasible to build the highway along any other route” (at 411). Interestingly, the word “prudent” was not interpreted to indicate that a balancing of competing interests should be undertaken such that the resulting destruction of parkland should be weighed against the cost of other routes, safety considerations, and other factors. On the contrary, Marshall J observed (at 411-13): “It is obvious that in most cases considerations of cost, directness of route, and community disruption will indicate that parkland should be used for highway construction whenever possible. ... there will always be a smaller outlay required from the public purse when parklands are used since the public already owns the land. ... And since people do not live or work in parks, if a highway is built on parkland no one will have to leave his home or give up his business. Such factors are common to substantially all highway construction. Thus, if Congress intended these factors to be on an equal footing with preservation of Department of Environment and Heritage Protection parkland there would have been no need for the statutes. Congress clearly did not intend that cost and disruption of the community were to be ignored by the Secretary. But the very existence of the statutes indicates that protection of parkland was to be given paramount importance. The few green havens that are public parks were not to be lost unless there were truly unusual factors present in a particular case or the cost or community disruption resulting from alternative routes reached extraordinary magnitudes. If the statutes are to have any meaning, the Secretary cannot approve the destruction of parkland unless he finds that alternative routes present unique problems.” [citations omitted] 51. In other words, the cost, directness of route, and other such factors do not account for a more prudent alternative. Rather, there must exist “truly unusual factors”, or the cost or community disruption resulting from alternative routes must have reached “extraordinary magnitudes” such that the alternatives present “unique problems”. …… 52. Section 4(f) came to be adopted in Australian legislation …..: 54. The object of s30 of the Heritage Act was therefore to reverse the impact of government activities on Australia’s National Estate so that in the future Australia’s heritage would be given paramount consideration in government decision-making processes. The section was designed to ensure that decision-makers are informed about the environmental consequences of their proposed actions and are made aware of feasible and prudent alternatives in order for them to be able to satisfy themselves that they have no effective choice but to take the proposed action. …… 62. …… For the purpose of this Assessment, I regard: ‘Feasible’ as relating to the technical practicability and cost-effectiveness, and `Prudent’ as relating to the economic benefits and environmental and social merits, .….. 63. …... No proposal which would cause harm to the grasslands would be accepted unless there were reasons of technical impracticability and cost or extraordinary economic hardship or environmental and social disadvantage in providing such protection. Kidd v Resource Management and Planning Appeal Tribunal [2011] TASSC 38 2-4 Salamanca Place in Hobart is listed on the Tasmanian Heritage Register. Section 41 of the Historic Cultural Heritage Act 1995 required the planning authority to be satisfied there was no prudent and feasible alternative before approving an Great state. Great opportunity. application for works which were likely to destroy or reduce the historic cultural heritage significance of a registered place. A permit for demolishing two buildings was issued, as part of a redevelopment of a much wider area. Ms Kidd claimed that the alternatives were not properly considered. However, the Supreme Court of Tasmania found the alternatives had been properly considered, and dismissed her appeal. Excerpt from judgment: 31. On one view, as counsel for the appellant acknowledged, to say that the phrase [‘no prudent and feasible’] must be concerned with the carrying out of the works in the context of the proposal is a statement of the obvious. I would have thought that the reason for, or what is sought to be achieved by, the works would always need to be considered, and that this means looking at the proposal, particularly where, as here, the works the subject of the application were far broader in scope than the “works” which were the subject of the s41 debate. … the parameters of the issue under s41 are set by what is ultimately sought to be achieved by the proposal. 43. As to the principal aspect of the present issue, in my opinion the inquiry under s41 as to whether there is no prudent and feasible alternative to the carrying out of the works is not one confined to, nor constrained by, the parameters of the proposal. …… 44. …… It cannot be right that the decision-making as to a prohibition on works of a certain kind can be fashioned and constrained purely according to the terms of the proposal. On that basis, the inquiry becomes one as to how the proposal can be achieved other than by the proposed works. This severely limits the operation of the section and is an interpretation which does not promote the purpose of the Act. Section 8A of the Acts Interpretation Act provides that in the interpretation of a provision, an interpretation that promotes the purpose or object of the Act is to be preferred to an interpretation that does not….. 46. As to meaning of the phrase itself, I think it to be correct that the two words “prudent” and “feasible” do have their ordinary meanings, but in their context, concern particular issues. Any alternative under consideration must of course be both prudent and feasible, a combination which may have an exponential effect. I think it is correct to say that “prudent” as used in the section concerns acting with or showing care, thought, and sound judgment, and relates to profitability, economic management and frugality: New Shorter Oxford Dictionary 1993, Macquarie Dictionary, 5th ed, 2009. “Feasible” means practical, or possible in the sense of capable of being conveniently done or accomplished: New Shorter Oxford Dictionary 1993. What has to be confronted is whether the use of the phrase in s41 amounts to a direction that approval cannot be given unless there are overwhelming issues of technical impracticality or extraordinary economic hardship involved in the alternatives. That is to say, whether “there must Department of Environment and Heritage Protection exist ‘truly unusual factors’, or the cost to the community disruption resulting from alternatives must have reached ‘extraordinary magnitudes’ such that the alternatives present ‘unique problems’.” Merri Creek at [51]. 47. …... What prudent and feasible alternatives exist are questions of fact. The exercise calls for a value judgment: Australian Conservation Foundation v Minister for Resources (1989) 76 LGRA 200 at 209, Friends of Hinchinbrook Society Inc v Minister for Environment (1997) 69 FCR 28 at 80. I have said that the test is a stringent one. This is so because of the need to achieve the primary purpose of the Act and in particular, to accord with s90. Beyond that, I think that what can be said is that a very clear and compelling case would need to be made out in order to satisfy the Council that there is no prudent and feasible alternative to the carrying out of the relevant works. Section 41 plainly does not involve a test using the notion of the balance of convenience, merely weighing the convenience of doing things which involve the destruction or reduction of heritage significance against the inconvenience of what that causes in terms of loss of such value. 48 Rejecting the approach adopted by the Tribunal does not mean that it is inappropriate or unnecessary to look at the subject works in the context of the proposal. As I have already indicated, the reason for the works is a relevant factor in the inquiry. In many cases, the scope of the proposal will not be a wide one. In some cases, as here, the works will be in the context of a much broader proposal of far greater scope and purpose. What ultimately is sought to be achieved is a proper matter to be taken into account. As Wheeler J said in Re The Hon G D Kierath (above), the test encompasses such things as the significance of what is proposed for the place. I do not read that as being put in a limited sense. In a manner of speaking, the greater the social utility of the ultimate purpose, the less “prudence” there may be in any alternatives, which would assist in the conclusion that there are no prudent and feasible alternatives. It may be that the benefits of a broad proposal which only relates in part to a registered place, are so great that the destruction or diminution of heritage significance is justified. 49 At the same time, the extent of the heritage significance is also a relevant factor. In the making of the value judgment, such an assessment is necessary. The baseline starting point is the criteria for listing in the register. In the same manner of speaking, the greater the value of the place, the greater would be the “prudence” of any alternatives. It may be that there is iconic value of such a degree that it would take extraordinary circumstances to justify the works, if justifiable at all. Great state. Great opportunity. Department of Environment and Heritage Protection Appendix 2 – Some practical issues Sustainable Planning Act 2009 (SPA): emergency provisions In emergency situations where personal, health or structural safety is endangered, the SPA allows work to be carried out prior to making a development application. All reasonable steps must be taken to ensure the work is reversible and the impact of the work on cultural heritage significance is limited. If practical, advice must be sought from a registered professional engineer. Asbestos Many heritage buildings have asbestos cement roofing or wall sheeting. Loose (unbonded) asbestos can also be found in interiors, used for insulation and other purposes. Potential asbestos hazards should be assessed by a qualified expert. However, it is rarely necessary to remove asbestos that is in good condition and not disturbed. In these circumstances, partial or complete demolition may not be justified on health and safety grounds. If it becomes necessary to remove dangerous asbestos that forms part of significant fabric, replacing it with an equivalent safe material is preferable to demolishing that part of the structure. Structural stability Structural instability may be grounds for demolition if it can be demonstrated that it is not technically feasible to make the building serviceable, or the costs of doing so would not be prudent and feasible. Failure to meet current Building Code of Australia (BCA) requirements is not adequate grounds for demolition. In general, existing buildings are only required to comply with the BCA requirements in effect at the time they were originally assessed or constructed (s115 of the Building Act 1975). If there is an alteration or addition to an existing building, a complete upgrade is only required in particular circumstances. All alternatives to demolition should be considered including partial demolition or replacing or supplementing existing structural elements. For example, existing roof structures vulnerable to cyclonic winds can often be retrofitted with tie-downs and new fixings for roof sheeting, with minimal disturbance to significant fabric. Great state. Great opportunity. Land contamination Land contamination may prevent a compatible use. Remediating may destroy significant heritage fabric, or the cost of remediation may result in economic costs that are not prudent and feasible. In each case, it is important that all feasible options for remediation and re-use are investigated, to determine whether the cultural heritage significance of the place can be retained. It may be appropriate to “do nothing”, leaving the contamination undisturbed if it is not a current threat to safety, and leave the site partially vacant or develop to a lower intensity. Department of Environment and Heritage Protection Appendix 3 – Cost-benefit analysis, recommended requirements A cost-benefit analysis weighs the expected benefits and costs of a proposal. However, in the context of a ‘no prudent and feasible’ application, it should only be used to compare the economic costs and benefits of alternatives. It is a more sophisticated form of analysis than profit and loss because it assesses economic impact over a period of time. A costbenefit analysis can compare the ‘do nothing’ option with development options because it assesses annual cash flows. A profit and loss analysis cannot assess the ‘do nothing’ option, as it normally only assesses development options. A full cost-benefit analysis should: • evaluate all costs and benefits (revenues) for each alternative which is assessed • provide adequate statistical and other evidence • provide details of all assumptions made in the calculations, including the basis of usage and sales projections, life-spans, financing and depreciation arrangements, taxation considerations, and prime cost items such as labour, energy, transport and materials • detail the methods used in arriving at costs and income scenarios and in evaluating alternatives (especially in calculations of community benefit) • provide risk assessments for the main variables and, where possible, probability assessments of ’total’ costs and revenues • reference authoritative studies, research and practices • be capable of independent audit and review. Great state. Great opportunity.
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