Plans for $500m Ritz-Carlton hotel at Pyrmont will not be supported

The state government has been condemned after moving in lock-step with Sydney Lord Mayor Clover Moore to deny approval for a 61-storey six-star Ritz Carlton hotel near the Star casino.

• Anna Caldwell: Pyrmont hotel rejection has set up a fight
• Major city projects being delayed
• Download our app now

Star casino will keep fighting to build a $500 million luxury hotel development at Pyrmont after the state government’s planning ­department sensationally knocked the proposal on the head last night.

The 61-storey residential and hotel tower for Sydney would bring 1000 construction jobs, but has been torpedoed by planning boffins who sided with residents worried about its height and impact on local traffic and parking.

Concept image of the proposed Ritz-Carlton tower at The Star.

The proposed plan appears dead in the water.

New Planning Minister Rob Stokes last night backed his department’s decision, saying it “reflects the consistent and widespread ­opposition to the scale of the proposal”. “The report is the result of an exhaustive process and provides some clear advice for the independent decision-maker to consider,” he told The Daily Telegraph.

MORE NEWS:

Anita Cobby killer leaves hospital after brutal bashing

Canada murder suspect’s dad says son is on ‘suicide mission’

Hayne responds as date set for sexual assault trial

The plan will now be considered by the independent Planning Commission. While it is rare for the IPC to approve a project the department has rejected, it is understood there is at least one precedent for this.

The proposed hotel at Pyrmont.

Premier Gladys Berejiklian is on holidays overseas but The Daily Telegraph has been told she is broadly supportive of more five-star hotels for the city and is frustrated by delays in planning approvals.

The Star said it was “extremely disappointed” with the decision.

A luxury room with a luxury view.

“We will continue to push ahead to seek approvals for the tower given the benefits it will create for tourism and the state of NSW,” a spokesman said. He pointed out the development does not include gaming facilities but would help the city increase its appeal to tourists. Former Tourism Australia boss John O’Sullivan last night labelled the decision a “tragedy” for Sydney, Urban Taskforce boss Chris Johnson said it was “inconceivable” and Tourism & Transport Forum Australia CEO Margy Osmond said the decision was “very discouraging for investors”.

Sydney Business Chamber executive director Katherine O’Regan said it was “disappointing” given the project’s “significant tourism and economic benefits”, and City of Sydney councillor Christine Forster said it would be a “great loss” if the project doesn’t go ahead.

But Sydney Lord Mayor Clover Moore said she was “delighted” with  the  outcome and urged the IPC to accept the ­recommendation.

”Delighted”: Clover Moore. Picture: AAP

“This massive tower would be eight times the height ­allowed under existing rules, cause significant overshadowing of public spaces and obstruct views of residents in existing buildings,” she said. The decision eliminates a commercial rival for Crown Resorts’ Barangaroo development, now set to be Sydney’s only six-star hotel once it opens in 2021.

Billionaire James Packer, a major Crown shareholder, said in 2016 he was a supporter of the proposed Ritz Carlton.

John O'Sullivan, left, and Matt Bekier, CEO of The Star last year. Picture: James Croucher

“What’s good for Sydney is good for Australia, and what’s good for Australia is good for Crown,” he said.

Tourism bosses have repeatedly complained the city is crippled by a lack of high end hotels with few built since the Olympics. Mr O’Sullivan has previously said the proposed 220-room Ritz Carlton “represents a much-needed addition to Sydney’s luxury accommodation inventory”, particularly with increased demand created by the new convention centre at Darling Harbour.

Christine Forster said the decision was a “great loss”. Picture: Toby Zerna

A spokesman from the Department of Planning, Industry and Environment said in a statement that it had “made a thorough and rigorous assessment of the proposal and found, on the balance, the public impacts outweigh the benefits”. “The assessment carefully considered issues raised in submissions, the proponent’s response to these issues and the expert advice of the Department’s independent ­design adviser.”

The Daily Telegraph understands key concerns related to the visual impacts of the tower, the ­impact of views and overshadowing, and the precedent that could be set in “largely low scale” Pyrmont.

Residents who opposed the tower in submissions to Planning and Environment said they were concerned it would “worsen” traffic congestion, “overshadowed the neighbourhood” and was “out of scale” with other high-rise buildings in the area.

Independent Member for Sydney Alex Greenwich, who campaigned against the development, said “common sense had prevailed”.