The terms of the JV provide that, if the rezoning fails, the Territory retains control over the NSW land adjoining the border and the Territory then hold the rights to any future outcome available on the land, having developed the abutting land in the ACT.
This approach to protecting the Territory’s interest, should there be an issue with rezoning NSW land, not only provides a sound financial basis for agreeing to a joint venture but also provides considerable incentive for Riverview when seeking agreement with the NSW Government to have the land in NSW rezoned.
In the event the rezoning of NSW does fail, the JV project would continue on a 60:40 basis, but would revert to a much reduced area of 508 ha, all within the ACT. Notwithstanding this being an extreme scenario, the Territory would still have 60% of a 508 ha project, equivalent to 305 ha, which is more than the original, base case scenario of nearly 300 ha (without the Joint Venture).
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