Interview between Alan Jones and Lesli Berger
Radio 2GB – Interview between Alan Jones and Lesli Berger
Thursday 9 November 2006; 7:15am interview starts
Alan Jones: Yesterday, I covered two superb stories, well if you can get yourself out to 376-382 New South Head Road, Double Bay, there is a young developer, doing a phenomenal job against the odds, I’ve seen it, his name’s Lesli Berger. We’ll talk to him first, he’s on the line, Lesli Good Morning
Lesli Berger: Good Morning Alan
Alan Jones: Now, this is a commercial development yours isn’t it?
Lesli Berger: That’s right
Alan Jones: now what, 2000m²?
Lesli Berger: That’s right
Alan Jones: of floor space, how many floors?
Lesli Berger: 4 stories
Alan Jones: and it will have the equivalent of top range, five star green star rating?
Lesli Berger: It’s going to be equivalent to that rating
Alan Jones: right, it will recycle the sewerage on this site?
Lesli Berger: Yes
Alan Jones: It will utilize the rain water for water use?
Lesli Berger: Yes
Alan Jones: It will minimise energy consumption because you’re using a passive solor design energy from the sun?
Lesli Berger: Yes, and as well we’re using an appropriate air conditioning system
Alan Jones: I saw that the windows that can open to reduce air conditioning needs
Lesli Berger: Yes
Alan Jones: So an energy efficient air conditioning system, you’ve got low wattage light fittings, now you’ve cut 150 tonnes of Green House Gases
Lesli Berger: Yes
Alan Jones: And you’ve done this with variable design features all up this has cost you about 10% of the development costs, about $500,000
Lesli Berger: That’s right
Alan Jones: But now this bloke has had Ayers Rock put in his Road by Woollahra council and Energy Australia, tell us about Woollahra council.
Lesli Berger: Well, unfortunately Alan with Woollahra council, one of the key design features which reduce CO2 omissions from our development is we’ve decided not to provide any on-site parking, that’s dealing with the transport element that you were referring to earlier.
Alan Jones: yep
Lesli Berger: Unfortunately Woollahra council
Alan Jones: Just stop there for a moment. So straight away my listeners are saying, no on site parking. Well God! Who’s going to lease the retail space and the office space, you’ve got a tremendous take up rate already haven’t you?
Lesli Berger: That’s right, we haven’t quite finished the development yet; it won’t be finished till December 2006 but we’re 85% pre-leased
Alan Jones: Pre-leased
Lesli Berger: Today
Alan Jones: Because access can be gained by public transport and other means can’t it?
Lesli Berger: That’s right
Alan Jones: Go on now, Woollahra council, listen to this
Lesli Berger: They haven’t seen eye to eye with us, they’ve said, look Berger’s, if you don’t want to provide parking on site were going to provide it for you in the council car park and were going to charge you a $1.3 million development levy for this.
Alan Jones: Right
Lesli Berger: That’s a 26%
Alan Jones: A 26% development tax
Lesli Berger: On our development
Alan Jones: And they’re saying their going to collect the money to expand the nearby council owned and operated cross street car park because you’re not providing car parking. Isn’t the cross street car park most of the time less than half full?
Lesli Berger: That’s right, most of the time it’s only 50% full, at its peak only 70% full
Alan Jones: And they’re going to build another floor on top of the car park
Lesli Berger/Alan Jones: Well that’s what they say
Alan Jones: They’re not of course; they’re just going to take your $1.3million
Lesli Berger: Of course
Alan Jones: Rip 1.3 million out of you to help expand a car park, they say, that they don’t want anyway
Lesli Berger: Well unless Woollahra council start building white elephants they are never going to expand the cross street car park
Alan Jones: Right, now come then to Energy Australia, have a listen to this one
Lesli Berger: With Energy Australia we’ve has a very difficult time, just after we got development consent we found out that Energy Australia wanted to install an electricity kiosk on our property
Alan Jones: Just explain that word ‘kiosk’ to our listeners
Lesli Berger: Basically, it’s one of those green boxes that you see on street from time to time, it’s where Energy Australia, it’s how they generate electricity capacity in a certain area
Alan Jones: That’s it, so they want to put that on your property?
Lesli Berger: Yes
Alan Jones: Without any form of compensation
Lesli Berger: That’s the problem Alan
Alan Jones: And federal and local government are suppose to pay compensation when they take away your property right, but the state government through Energy Australia has no such requirement.
Lesli Berger: That’s right
Alan Jones: And you said to Energy Australia, what the hell are you putting an electricity kiosk on my land for because I am a sustainable developer
Lesli Berger: We did tell them we were sustainable and just a –
Alan Jones: So you’re building a 4 story building and your designing and you’re building to use no more energy than the previous 1½ story building on your site
Lesli Berger: At the time that’s what we were prepared to do Alan, and unfortunately, Energy Australia rejected our offer, and as a result some of the features that we were proposing to install to reduce C02 omissions further, we just couldn’t afford to install those features.
Alan Jones: that’s it, so in other words you’re trying to make your property more energy efficient, Energy Australia don’t want it I suppose because it would mean like the oil companies less energy purchased from Energy Australia
Lesli Berger: Well it’s not exactly in Energy Australia interest to be reducing energy consumption
Alan Jones: That’s it, not in there interest to reduce energy consumption. So the electricity kiosk and sub station wasn’t required as a result of your development just to meet the surplus demand generated by unsustainable buildings in the rest of Double bay
Lesli Berger: That’s right
Alan Jones: And that’s a cost to you of what, about $700,000
Lesli Berger: if you look at the space that we have to give them, it’s about $700,000 in lost capital value which is a further 14% development tax
Alan Jones: So all up you’ve put a sustainable commercial retail development together and you’re going to be paying 40% tax for your sustainable development
Lesli Berger: That’s right
Alan Jones: Why would someone go sustainable?
Lesli Berger: Well that’s what I ask people
Alan Jones: And that’ the reason were talking to you.