The Pottery Lane Building is located across the road from the Lane Cove Aquatic Centre. It is both a residential apartment building containing one tower of seven storeys and a 6-level basement carpark and commercial offices.
In July 2023, The Department of Fair Trading issued a building work rectification order to Lane Cove Council to “remediate the potential serious defect.” The defects related to issues with waterproofing on the building’s rooftop levels.
Failure to comply with the order is a criminal offence.
WN Developments Pty Ltd and Lane Cove Municipal Council developed the Pottery Lane Buidling, which is known as 1-5 Pottery Lane, Lane Cove NSW 2066 (SP 95221).
Originally, the rectification work was to be done within 2 months.
In February 2024, a spokesperson for the Building Commission NSW advised ITC:
“The Building Work Rectification Order was reissued for this project on 29 August 2023, as the compliance deadline was extended from two months to six months. The extension allows rectification work to be carried out correctly and minimises occupant impact.
The Building Commissioner has met with the Lane Cove Council about the matter. The Council is expected to detail the work required to fix defects.”
On 23 May 2024, the Lane Cove Council was issued with an amended Rectification Order, giving them six months to rectify the defects noted in the order issued in 2023.
New Rectification Order Issued – 23 May 2024
On 23 May 2024, a new rectification order was issued.
Lane Cove Council has been given six months to rectify issues around fire safety systems, including the following:
Car Park B1 Level – Services with plastic, pex or similar materials are located in close proximity to uninsulated metallic pipes.
Levels 3, 6, and 8 and Car Park B1—There are unprotected services penetrations in floors, walls, and ceilings that are required to have an FRL (Fire Resistance Level). The installation does not match that of a tested system.
Levels 3, 6, and 8 – Required Fire Doors have an excessive gap between leaf frame and floor.
Level 8 Fire Stair South – Construction joints and gaps/spaces between building elements required to be fire resistant are unprotected. The installation does not match those of a tested system.
Level 8 Gas Meter Cupboard – Louvres in the gas meter cupboard located in the common corridor are not fire-rated.
What Will this Cost Lane Cove Council?
In the 2023/24 Budget – Third Quarter Review the following was noted:
“The transfer of $750K Little Street remediation to the operating budget plus additional $350K for fire safety and associated works”.
Although not specifically noted the 350K must be for the second rectification order.
At the Lane Cove Council May meeting the General Manager stated that their original provision of $750 000 for waterproofing rectification would not be sufficient and advised that they were now looking at an amount in the sum of $1.25 million. Councillors were asked to approve a transfer of $500 000 from the Capital Reserve Budget.
A Lane Cove Spokesperson told ITC:
“Council is responding to the Rectification Order as a co-developer, Council in the first instance will be seeking to recover all costs from the developer of the residential strata, which was required to indemnify Council against such claims.
In the interim Council will fund the works via its budget from both the Insurance Reserve and Capital Works Reserve. Council’s quarterly budget review considered at the May Council Meeting approved a total of $1.6m in respect of all works.
A reminder that the background to Council’s involvement in the project, in particular the advantageous commercial arrangements for the development, is available on Council’s website.”
A recent ASIC search of the co-developer reveals that the strike-off action is currently pending. Unless the Lane Cove Council obtained a parent company guarantee, it is highly unlikely that the co developer has any assets left to pay the Lane Cove Council.
Why Was the Notice Only Served on Lane Cove Council?
The Department of Fair Trading obviously looked at the developers and noted that WN Developments Pty Ltd is being wound up.
Simon Napoli, a director of WN Developments, has lodged an application to wind up the company voluntarily.
He has certified that the company does not have any liabilities and is not a party to any litigation.
Mr Napoli hit the headlines in Queensland due to his involvement in a Couran Cove Development. See the Article: The Catholic Church figure, the island resort stoush and the mystery company
Lane Cove Council was given a copy of the proposed order, and on 18 May 2023, Lane Cove Council submitted, “the appropriate course for the Department to take, to remediate the relevant defects, is to issue any necessary BWRO on WN Developments and not Council”.
Lane Cove Council did not provide a justification for this course of action, and the Department of Fair Trading stated that as Lane Cove Council was the developer, it is appropriate to serve the rectification notion on the council.
Complicated Site History
The history of this site is complicated. The site was previously an outdoor car park.
This site was subject to a previous development application (DA10/172), which was lodged with Lane Cove Council on 10 August 2010 and withdrawn on 5 November 2010 as a result of a number of deficiencies identified by GM Urban Design & Architecture who independently assessed the DA on behalf of Council.
After the building was completed, ITC received complaints from residents about the fire alarms going off constantly. ITC was contacted by residents who were disappointed with the Lane Cove Council’s response to their issues.
ITC asked the Lane Cove Council to comment on the rectification notice. They advised as follows:
“Thank you for your enquiry today about the Building Work Rectification Order from the Department of Fair Trading (dated July 25). The person responsible for this matter is on leave until next week, and we are unlikely to have the work scoped and costed by your deadline of Wednesday. I will keep you informed of any further information I am able to provide.”
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Thank you for the update on Ivory Units.
For your information.
We are residents, top floor, in Ivory and are affected dramatically.
The mould situation, due to water problems, has caused health issues which prevents occupying the unit.
We have had to find alternate accommodation.
The timing of the repairs has frustrated us as the outgoings such as levies and Council Rates keep coming.