Australia, June 24 -- New South Wales Land and Environment Court issued text of the following judgement on May 23:

1. HER HONOUR: This is a claim for contractual damages. The plaintiffs (the developer) seek $20 million from the Department of Defence for breach of a lease, under which Defence was obliged to remediate land and 'make good' the leased premises at the end of the lease.

2. The developer has since redeveloped the land, together with adjoining land, into an intermodal terminal facility. The developer seeks the costs of dealing with asbestos contaminated soil and hazardous chemicals encountered during demolition and excavation works undertaken to build that facility.

Summary

3. For nearly a century, Defence owned land in Moorebank, New South Wales, which it used as a supply and distribution centre. The site was 83 hectares - roughly the area of Darlinghurst - with 66 buildings including warehouses and administrative offices.

4. In 2003, Defence sold the land to a major bank with a 'lease back'. The lease required that, by the expiration of the lease, Defence would "remediate the Land to a standard suitable for on-going commercial / industrial use." The bank on-sold the land to (ultimately) the developer. The developer and Defence later renewed the lease, but in the same terms.

5. In 2015, Defence executed a "Deed of surrender of lease" and vacated the site. The deed obliged Defence to provide a site audit statement (being a document provided by an independent auditor accredited by the NSW Environmental Protection Authority (EPA)) certifying that the land was suitable for commercial/industrial use, either unconditionally or subject to compliance with an environmental management plan (EMP). This was done.

6. In 2016, the developer obtained approval to construct an intermodal terminal facility on the Moorebank site and adjoining land. The facility is intended to move 1.5 million shipping containers annually by rail instead of road, serviced by automated technology which will see driverless shuttle carriers collect and transport containers around the precinct to be processed, unpacked and stored on-site or distributed in smaller consignments. The development includes an intermodal rail terminal, rail link connections to Southern Sydney Freight Line (which enables the transfer of containers from Port Botany), warehouse and distribution facilities, and a freight village including ancillary services.

7. From 2017 to 2019, the developer took the site apart. No stone was left unturned. Buildings were demolished. Vegetation and topsoil were removed, being "geotechnically unsuitable" for the major building works which were to follow. Underground infrastructure was dug up and removed, including stormwater pipes and telecommunication pits. Hardstands, roads and pavements were removed.

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/196ebfce1e99f21d72a83b2d)

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