By Megan Gorrey
Demolition of buildings to make way for a long-planned public square in the heart of the central business district could start within four years under a City of Sydney plan to accelerate the project.
Lord Mayor Clover Moore said the ageing buildings opposite Sydney Town Hall were becoming too expensive to maintain as she signalled her intention to start work on the grand civic square – which had previously been delayed until the mid-2030s – before the council term ends in 2028.
An artist’s impression of Town Hall Square, part of the council’s long-term strategy to create three separate but interconnected public squares along George Street.
Town Hall Square was first proposed in the 1980s. For the past three decades, the council has been gradually acquiring a parcel of properties between George and Pitt streets opposite Town Hall, which it has hoped would eventually constitute a rare public domain in the centre of the city.
In 2023, councillors received advice from staff to extend commercial and retail leases in the precinct until 2035, to allow the council more time to buy the required properties, bank savings to help fund construction of the future square, and secure financial input from the state or federal governments.
At a meeting on Monday, Moore told councillors the council had negotiated to extend those leases while it was “severely affected by the financial impacts of the pandemic and not in a position to deliver the square”.
“However, these buildings are all around 50 years old. I have been informed that because of their age, the costs to maintain and upgrade them to comply with current standards are increasing and becoming prohibitive.
“Investing in buildings we intend to demolish for the future Town Hall Square is not prudent,” she said.
Moore said that post-COVID, the council had tried to retain tenants and entice new ones while vacancy rates in older buildings were high, as tenants wanted “newer, blue-ribbon floor space”. She also said more workers, commuters, night-time revellers and metro train passengers were using the area.
“I believe the council must re-evaluate and adapt to changing conditions to maximise benefits for the city and its communities. And we need to provide for the future,” she said. “It was different the last time we dealt with this matter in 2023.”
The Woolworths building would be demolished under the long-mooted plan to create a public domain in the CBD.Credit: Rhett Wyman
Moore put forward a motion requesting the council staff investigate options to fast-track the delivery of the square in the 2025-26 budget, including a project scope with costings, and for demolition to start before the end of the council term in 2028.
Councillors unanimously supported the motion.
Independent councillor Yvonne Weldon said the square had “a lot of merit”, but urged the council to consider the potential impact on the Woolworths supermarket that occupies one of the buildings.
“It’s the only decent and affordable supermarket in the city, many residents rely on it,” she said. “While I support kicking off this process, we must plan carefully for it and be briefed regularly.”
Council chief executive officer Monica Barone said consultation with tenants would be part of the process, and “that’s why there is a lot of work to do to see if we can realise it in a shorter time frame.
“This is simply asking us to go away and say, can we bring it forward, and is there merit in bringing it forward, instead of spending money to upgrade buildings that eventually will be demolished?
“The circumstances have completely changed now because of the property market, and we have got to adapt to changing circumstances.”
The council’s 2050 strategy for the city includes three grand civic plazas at Central Station, Town Hall and Circular Quay, the latter of which would require the demolition of the Cahill Expressway.
In 2019, Moore said the vision for Town Hall Square would “be realised over the next 10 years”.
An artist’s impression of the future Town Hall Square.
The following year, the council gave Woolworths a lease until December 2030. In May 2023, Moore acknowledged there was little chance the wrecking ball would go into the site before 2035.
Council papers have previously estimated construction for Town Hall Square would cost far in excess of $200 million; Barone has described it as “probably the biggest project we’ve ever envisaged”.
The council has already spent tens of millions buying up other properties on the block – with one more still to acquire. Terminating the leases – such as Woolworths, which occupies the north-west corner of the block – would also significantly reduce the council’s income.
All leases beyond July 1, 2035, were to contain a “demolition” clause allowing the City of Sydney to take early possession of the property with 12 months’ notice.
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