The ACT Greens have called for changes to planning laws, after it was revealed the territory government knocked back a development which included units for people with intellectual disabilities because the bidders did not meet the reserve price.
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The Suburban Land Agency and the City Renewal Authority ended an almost year-long tender process to sell the former Northbourne Flats sites in May, as the preferred tenderers did not meet the reserve price for the block.
Preferred tenderers Wayne Gregory and John Russell say they were never told their bid was too low, and were blindsided by the decision.
Their proposal - Hyper on Northbourne - would have included about 23,000 square metres of "high quality landscaping", open to the broader Canberra community.
It also included a working city farm, to provide fresh food to the restaurants and an aged care facility on site.
The bid also laid out plans for 200 build-to-rent apartments that would be rented out at 20 per cent below market rate.
It would have also given 12 units to Project Independence, which provides social housing for people with intellectual disabilities.
The developers would have also rented out 1000 square metres of commercial space at 20 per cent below market rates, to support start-ups and "cottage retailers".
But the government ultimately ruled that it could not accept the price the developers wanted to pay for the land, as the "non-monetary aspects" of the tender provided benefits to third parties, not the territory.
Under planning laws, this meant there was no leeway to accept the lower bid.
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Greens crossbencher Caroline Le Couteur said ACT government staff "should have the flexibility to choose quality over price, provided a rigorous process is followed".
"It is a real shame that high quality design was effectively ruled out and we need to change our processes to build quality in," Ms Le Couteur said.
"Canberrans often tell me that they would support infill if it was better quality
"High quality development is more important for the Northbourne Flats site than getting a set reserve price."
She said now the tender had failed, entries from a 2011 competition to design the future of the sites should be revived to "to get high quality affordable housing built".
The flats were emptied and demolished in order to cash in on the Commonwealth's asset recycling scheme, which offered up a 15 per cent bonus to governments turning over ageing property.
But the territory came under fire for failing to ensure there remained public and affordable housing in the urban renewal corridor.
The ACT reached its maximum bonuses under the asset recycling scheme before the June 2019 deadline, rendering the sale of the Northbourne Flat sites and Macarthur House unnecessary.
