The ACT government has terminated the Crown lease on a residential block of land in west Belconnen after the lessee failed to build on the property for six years.
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Planning rules generally require development on residential blocks to begin within 12 months, and be completed within two years, of purchase.
Sustainable Development Minister Simon Corbell said it was the first time since self-government that a residential lease had been cancelled for non-completion of development, but the government would be willing to take the same action against other lessees.
''We're stepping up our compliance action on undeveloped blocks,'' Mr Corbell said. ''We get a lot of complaints from residents, particularly in newer suburbs, unhappy with vacant blocks in their suburbs. I can understand and sympathise with the concerns of residents.''
Mr Corbell declined to reveal the address of the block for privacy reasons. He said it would be sold by the bank that had held the mortgage.
Mr Corbell said it was possible for lessees to be granted extensions to build but blocks could not be left undeveloped indefinitely.
The cost of extensions was only a couple of hundred dollars.
The government was investigating about 50 other cases of non-compliance with development covenants.
