Newcastle: Iris Capital’s East End project axed, major developer warns Minns Government over housing targets
A major developer has issued a scathing review of the NSW Planning system, saying the Minns government has no chance of hitting its housing targets after a $1 billion project was axed at the final hurdle.
NSW
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One of the state’s major developers has warned the Minns government it will never achieve its housing targets under the current planning system after a $1 billion project was axed by unelected bureaucrats at the final hurdle.
The third and fourth stages of Sam Arnaout’s award winning East End development in the heart of Newcastle was rejected by the Joint Regional Planning Panel at the very end of a four year process that included a design competition and approval by government architects and local planners.
It is the latest in a string of projects across NSW that have been nixed in the final stages by the unelected Joint Regional Planning panels and has led to calls for Planning Minister Paul Scully to ditch them altogether.
“I don’t know how the state government expects to deliver housing into NSW when it’s taking four years to get a DA to a consent authority, which has been through a design competition and endorsed by the council, then for it to be ultimately rejected,” Mr Arnaout said.
The first and second stage of the development has finished and attracted big name tenants into the city with stages three and four expected to deliver 195 new dwellings until the panel ruled against it.
“It is mind boggling that we make changes at the request of the council to improve the view and then have those changes rejected by the panel,” he said. “It discourages developers to follow due process.”
Mr Arnaout’s IRIS capital has become a key placemaker in NSW but he warned the current planning system was styming housing growth.
“We have spent $500m in Newcastle, we could end up spending $1b, how many others do you think are lining up to spend that sort of money?” Mr Arnaout said.
He has requested a review of the decision which questioned whether the requested modifications to the original concept meant the stage three and four plan was actually a completely new design. A new panel is being formed and is expected to deliver its decision in the next couple of weeks.
A spokeswoman for the City of Newcastle said it was “disappointed” at the panel’s decision to reject the design which would have ensured the protection of the view of Christ Church Cathedral from the Harbour Foreshore and Hunter Street Mall.
“This outcome does not align with the long held strategic objectives of City of Newcastle and the NSW Government to connect the city to the harbour and increase housing and activation in the city,” she said.
“The decision sends a poor message to the development community about Newcastle.”
Urban Taskforce chief executive Tom Forrest said the Joint Regional Planning panels needed to be held to account for rejecting housing supply options that have the broad support of planning experts.
“Department of Planning staff, who are trained, professional planners, have been reduced to nothing more than clerks for the panels. They are not even allowed to express an opinion on the merit, even though they prepare a comprehensive summary,” Mr Forrest said. “This must change.
“In this case in Newcastle, they appear to be working against the policy of the government and the interests of the Newcastle community.”
Planning Minister Paul Scully confirmed a new planning panel is being convened to look at the East End development decision in Newcastle.
“Last year I wrote to all Planning Panel chairs asking them to take into account the current housing crisis when considering proposals,” he said.
“Panels provide independent advice on planning proposals and DAs. They do not operate at my direction, but I monitor the structure and operation of panels and will make improvements to the system where they are needed.”
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