The Minns government has wrested control of the City of Sydney’s decades-long plan to knock down seven inner-city buildings for a public square, after an independent panel advised the project was of state significance.
Citing the cost and prominent location of the long-vaunted Town Hall square, Planning Minister Paul Scully in September intervened by referring the $94 million council project to the NSW Independent Planning Commission for advice on whether it should instead be assessed as state-significant development.
On Friday, Scully said he would use his powers under the NSW Environmental Planning and Assessment Act to declare the project state-significant, bypassing council approval processes. He said the commission had advised the proposal warranted state-level assessment after considering information provided by the City of Sydney and the Department of Planning, Housing and Infrastructure.
However, he said the fate of the project would ultimately be decided by the commission, which was established to decide the state’s most complex and contentious developments.
“The proposal will be delegated to the Independent Planning Commission for determination, should the City of Sydney submit a state-significant development application,” Scully said.
“This process will allow for a rigorous whole-of-government assessment by the department and provide an opportunity for individuals, the community and other stakeholders to have their say on any development application before its determination by the Independent Planning Commission.”
The City of Sydney has been gradually acquiring a parcel of properties between George and Pitt streets opposite Town Hall, hoping to create a rare public domain in the centre of the city, since the 1980s.
In February, councillors voted to accelerate demolition of the buildings, including Woolworths supermarket, stating its ambition to complete demolition and construction within about six years. Woolworths and the Business NSW lobby group have been fighting the proposal.
Scully said last month he was referring the proposal to the IPC for advice as it would have a “significant impact on the commercial heart of Sydney’s CBD, requiring the demolition of seven buildings and an expenditure of at least $150 million in ratepayer funds”.
The move prompted a fiery response from Lord Mayor Clover Moore, who said she was “shocked and disappointed” by the Minns government’s “extraordinary and highly unusual intervention in established planning processes”, which she was concerned “could delay or even block the Town Hall Square project”.
The council compulsorily acquired the final building needed to erect the square on September 11. A development application was submitted to the council this month.
In a letter to the commission last month, City of Sydney’s chief operating officer Kim Woodbury revealed the council had revised the cost of the project from $150 million to $94 million.
“Having regard to the significance of the new Town Hall Square proposal and the substantial public investment already committed to the project, the applicant considers that any transition to the SSD assessment pathway should occur only where it can be demonstrated that it will not adversely affect project delivery timelines or costs.
“Any resulting delays or additional assessment requirements would increase project costs and defer the public benefits of the project, with associated financial impacts ultimately borne by City of Sydney ratepayers.”
Woodbury said the council was committed to the timely delivery of the project, and requested any change to the planning pathway be fair, transparent and not trigger unnecessary costs or delays.
In an interview with the commission in September, Woodbury was asked whether the council supported the project being “called in” by the minister.
“We’ll probably say that it’s not our decision and we didn’t ask for it,” Woodbury said.
In August, the council revealed designs for the 4200-square-metre plaza, prepared by Sydney design practice JPW and landscape architects ASPECT Studios, featuring eucalypts, moving water, seating and circular paving patterns to provide an outdoor venue for large events including markets, festivals, concerts and sporting-event livestreams. The square would have an Aboriginal name.
Moore said in September the project would be assessed by an independent planner and determined by the Central Sydney Planning Committee, most members of which have been appointed by the state government.
“Any suggestion that council had a conflict of interest or isn’t managing approval appropriately is incorrect. We remain confident in the merits of the proposal and see no planning reason why it should not ultimately be supported,” Moore said.
Business NSW executive director Paul Nicolaou last month said the government had “made the right call in putting the brakes on the City of Sydney’s plan to demolish seven buildings in the commercial heart of the CBD in favour of a controversial Town Hall square that would cost a minimum $150 million”.
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