Question: I have been getting the same answers please give me the other answers. please do not just copy and paste from the other questions answer
I have been getting the same answers please give me the other answers. please do not just copy and paste from the other questions answer I posted before.
Question
1 Describe stages of Compulsory Acquisition - due process (250 words)
2 Identified heads of claim (250 words)
Scenario
I'm a valuer retained in a matter involving the compulsory Acquistion(resumption) of a substance portion of a vineyard by the department of transport &main roads. For the realignment of an interstate highway.
The case
Severn River Wines is a successful vineyard, winery and associated tourist facility on the Granite Belt, Southern Downs, Queensland.
It covers 34 hectares and has been in operation for more than 20 years. It features 18 hectares of mature vineyards (mainly Verdelho and Merlo grapes). With granite-based, well-drained soils, the vineyard is well raised and has an excellent aspect. A big dam on the land provides sufficient agricultural water.
Being one of the biggest of the region's 40 producers, the wine/vineyard has a great brand awareness. The majority of vintages sell out within a year or two after their debut. Many have received prestigious accolades. All of the wines are cultivated and bottled on the estate, however bulk grapes are periodically sold to other wineries depending on seasonal conditions. In a typical season, the vineyard yields around 7.2 tonnes of grape per hectare (about 750 bottles or 62 cases). That amount of production would be somewhat lower than regional norms. Wines are virtually solely sold at the cellar door or by mail order.
(It's also worth noting that volume isn't always a good indicator of quality; some of the greatest and most costly vintages have low quantities and stress.)
The vineyard also offers a tasting room, a 40-seat caf/restaurant, and five standalone cottages for overnight stays.
Although the business is family-owned and run, it does employ support and operational workers in the vineyard/winery, restaurant, and cabins during specific seasons.
The New England Highway, which ran alongside the property to the east, was scheduled for a significant realignment by the Department of Transportation (DOT). DOT had revealed preliminary plans (without details) as early as 2014, but they were put on hold for Commonwealth financing.
The intended work includes a complete reconstruction/realignment of that piece of roadway as well as a set of new culverts (which was subsequently described). It would need the forced purchase of a 5.2 hectare severance along the front of the property, with a width of up to 30 metres (see attached sketch). With its present crop, it land contained a growing vine area of 2.7 hectares (including headlands).
The vineyard already had modifications well underway in the second half of 2019 to enhance its complete irrigation system, including the installation of a riser tank and accompanying upgrades on part of the (high) property afterwards resumed with DOT at a cost of $25 000.
DOT addressing the probable acquisition of the indicated land around the same time (September 2019), and when Commonwealth funding was announced in the Federal budget. Despite continuous conversations, the owners were not in favour of the project, and a Notice of Intention to Resume (NIR) was issued in March 2020. The owners filed an objection citing potential harm to their vineyard as well as their ongoing company.
There appeared to be a sense of urgency throughout the process, as the project's funding was contingent on construction starting and finishing on time.
DOT conducted more onsite investigations/surveys and evaluated the complaints raised, but in July 2020, they announced that they had dismissed the objection and will proceed. The resumption was declared in October 2020 after proper process. The design work was then completed, and contracts were quickly awarded. In November 2021, the entire roadway rehabilitation was finished.
In February 2021, DOT received a letter from 5 casual employees normally employed at the Winery caf/restaurant, tasting room, and accommodation, alleging that their work hours were reduced or employment was temporarily lost due to construction, and requesting payment of $21 500 to compensate them for their lost income.
A without prejudice conference with the owners and their representatives has now been set down for three weeks from today.
Other relevant details are as follows:
-
During the construction period, cellar door sales had reduced by the equivalent of $55,000 (net that is, return to owners excluding production cost of the wine and overhead costs). It should be noted however that vintages can obviously be stored and mail order sales for that vintage were strong, given the quality of that wine and limited supply for that year.
-
During the same period restaurant trade fell by 35% overall a net loss (i.e. not counting operation and staff costs) of $28,000, compared with similar periods in past years.
-
Given the disruption caused by the construction, DOT considered that it was not safe nor advisable to provide access to the cabins over a 3 month period and no bookings were taken during that period. (Average tariff was $210 per cabin per night with average occupancy of 75%. The return to the owners (i.e. ex operating costs) were $90 per cabin per night.)
-
At the end of the project, access and egress to and from the property were enhanced somewhat with a turning lane provided from the north and slip lanes on the vineyard (western) side of the new highway alignment. Drainage and management of stormwater (potentially important issues in grape growing on nearby lands) were also likely to be improved in the whole vicinity, including the subject property, given the new table-drains and culverts that have been constructed along the whole road project/realignment.
-
The owners have particularly concerns, potentially among other things, that:
- the aggregated effect of these disruptions could have a longer term effect on their business and there is some need to remedy/compensate for that.
- an outcome of the work has been to effectively bring the highway that much closer to their operations.
-the resumption effectively reduces the output of the key product of the enterprise (wine production) and, effectively, chips away at the viability of the enterprise where, in fact, more production not less would assist the business at this time.
- the resumed area has excellent elevation and enjoys extensive views to the west. Comparable properties in the vicinity have, after approval, been allowed the excision of a small number of acreage residential lots. The owner believes such potential should recognised and its (potential) loss for that be recognised and compensated.
-
High quality agricultural land suitable for horticulture/viniculture is attracting approximately $15 000/ha in its cleared but undeveloped state.
-
The development cost of a vineyard (trellises, ground leveling, preparation, irrigation lines and vines and maintenance during the development period) is $24 000/ha, inclusive of headlands etc.
[Note however, that the new vines will not come into full production for 4 years and an allowance needs to be made for growing/development period invested capital at 6%p.a. for 2 years.]
-
The necessary alterations to this section of the vineyard will involve substantial changes to the drip irrigation system used on these vines. This is specialised work for which consultants/ contractors are available in Stanthorpe.
-
Bulk grapes picked at harvest have a typical value of about $700/tonne. They are harvested in February through to April.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
