Flamingo Enterprises Pty Ltd v Chief Executive, Department of Natural Resources and Mines

In the case of Flamingo Enterprises Pty Ltd v Chief Executive, Department of Natural Resources and Mines, the dispute revolved around the valuation of a piece of land with potential for development. Both parties acknowledged that the land's highest and best use was for a development site, potentially comprising home units or a mix of home units and commercial purposes on lower levels. The key contention was whether the higher plot ratios allowed by a new Town Plan, which could lead to a higher value per square metre for the land, should be reflected in its valuation.

The court had to determine whether the higher plot ratios allowed by the new Town Plan should be factored into the land's valuation, as argued by Mr McLaren. Additionally, the court needed to assess the impact of the corner location of the land on its value, considering the views it offered, and how this compared to an inside lot. Another point of contention was the relevance of the existing lease on the land's value and the appropriate method to calculate the unimproved value of the land, considering it was already improved.

The court accepted that the maximum height of any development on the land would likely be reduced to 10 storeys after the new Town Plan. It also acknowledged that corner location might provide some advantage in terms of unobstructed views towards the beach, but this would be influenced by the building setbacks. The court further found that any use for commercial purposes on the lower levels was likely to be more oriented towards motel purposes. Regarding the lease, the court determined that it was irrelevant under the Act. The court also clarified that the unimproved value of the land should be calculated assuming the improvements did not exist at the time of valuation.