A state government authority has been ordered to pay a Wyndham Vale farmer more than $48 million for his land, which could be needed for the future construction of an outer suburban highway.
The matter was heard in the Supreme Court during November last year, with a decision issued last month.
The court ordered Transport for Victoria – a statutory office of the Department of Transport that is responsible for the planning and co-ordination of all transport systems in the state – to pay farmer John Murray Kilpatrick the sum of $48,948,716.
The court heard that Mr Kilpatrick has owned and farmed land at 1000 Ballan Road, Wyndham Vale since 1972.
During 2010, the state government placed an overlay on the land, designed to allow the government to acquire the land to build the future Outer Metropolitan Ring Road.
But the court heard that Mr Kilpatrick only found out about the overlay in July 2017, after Wyndham council refused a permit to allow him to build a single dwelling on the land, on grounds which included the subject land was, or might be, required for a public purpose.
That same month, Mr Kilpatrick served a claim for compensation against Transport for Victoria, in relation to 60.88 hectares of his land which abuts Ballan Road and Spring Plains Road.
In December 2018, Transport for Victoria paid Mr Kilpatrick “advance compensation” of $39.7 million.
However, Mr Kilpatrick’s legal team argued the land would have been worth more if it was used for residential subdivision.
Mr Kilpatrick claimed compensation from Transport for Victoria under the Planning and Environment Act 1987.
He also claimed expenses under the act, and interest under the Supreme Court Act 1986 (Victoria).
Although interest and costs are yet to be determined in the matter, Supreme Court Justice Gregory Garde determined Mr Kilpatrick’s land was valued at $950,000 per hectare, resulting in the $48.94 million payout.
