_Revised Sydney CBD Planning Controls Endorsed

On Monday 17 February 2020, City of Sydney Council endorsed the revised Central Sydney Strategy along with the final draft Local Environmental Plan (LEP) and Development Control Plan (DCP) provisions for the Sydney CBD. The package also includes a new Development Contributions Plan and amendments to the Competitive Design Policy. 

The amendments particularly relate to the long awaited “Tower Cluster Areas”, and as expected, the crucial information lies in the detail within the DCP and Competitive Design Policy.

The endorsement by Council’s Planning Committee sees the first detail provided since Lord Mayor Clover Moore and the NSW Planning Minister announced three changes, agreed in-principle in December 2019. These were: 

• Removing the residential 50% cap – Encouraging more office, hotel and cultural space by removing the residential accommodation bonus instead of implementing a 50% cap on residential and serviced apartment accommodation.

• 50% uplift in FSR and Height for Tower Cluster sites (near Barangaroo, Circular Quay, Central and Town Hall) – this will be embedded in the LEP and DCP, removing the need for a site-specific planning proposal, but subject to a design excellence process.

• Preparing a new Development Contributions Plan – to help fund the delivery of new public infrastructure in lieu of the proposed ‘community infrastructure contribution’ in the draft Guideline on a case by case basis.

When considered against the Central Sydney Planning Strategy released in March 2019, a number of crucial changes have been made, with other aspects remaining unchanged. These key changes are outlined below. 

Super Tower/Tower Cluster Sites

• Tower Cluster sites have now been confirmed and mapped to form part of the LEP, allowing for 50% additional GFA

• The additional 50% GFA and height will only apply to these Tower Cluster sites if they meet the following criteria:

o New buildings do not contain residential or service apartment floor space;

o The site has an area greater than 2,000 sqm, excluding areas of the site that are occupier by heritage items, public space and open spaces; and

o The height of a building does not exceed any sun access/overshadowing and aircraft operations related controls.

• Additional GFA is based on the total achievable (base FSR + accommodation FSR).

• Additional 50% of floor space is not subject to additional Heritage Floor Space.

• Developments are not eligible for a further 10% under existing Design Excellence provisions on top of the 50% bonus.

• Additional section of DCP, “Tower Cluster Areas” including revised Design Excellence procedure with very prescriptive controls and requirement for site testing.

• Stage 1 DA (Concept DA) and full architectural design competition required, followed by Design Competition and Stage 2 DA. The revised DCP sets rigorous requirements of what is to be considered.

• Minimum of 6 architects to participate (at least 50 % Australian) – to be paid 150,000 each (minimum $900,000) – not accounting for Jury and consultant costs.

• Any additional FSR in the 50% uplift not confirmed until the determination of the Stage 2 ‘detailed’ DA – maintaining the same arrangement as the current design excellence process.

Council has confirmed the previous ‘Guideline for Planning Proposals’ is no longer needed and will not be exhibited. This raises questions about how Planning Proposals, if accepted, will be handled by the City. We understand Council intends for this pathway to remain open to sites.

Maximum Residential cap removed across the CBD

It has been proposed that the cap of maximum 50% residential/serviced apartment FSR in any building is removed. Instead, no bonuses over the base FSR (typically 8:1) will be provided for residential or serviced apartments. Intended to create an incentive for commercial/office and employment generating building uses. 

There have also been some minor changes in the western edge of the CBD for hotel, allowing an additional 0.5:1 FSR.

Building Heights for CBD - outside of Tower Cluster Areas

• A minimum site area of 1,000 sqm will be required to construct a building taller than 55 metres, despite the maximum height controls in the LEP.

• Sun access planes and no additional overshadowing areas have been retained in the controls.

• There have been changes on the western edge of the CBD from 80 metres to 110 metres.

Development Contributions

Currently 1% of the construction cost on new development is levied, under Section 61 of the City of Sydney Act 1988. The City and Department have agreed in principle that this will increase to a 3% flat rate levy across the CBD, which will be reflect in a new Contributions Plan. 

The ‘value capture’ contributions (‘community infrastructure floor space’) that have previously been discussed as part of site-specific planning proposals above existing controls are not included in the package, with the revised 3% flat fee proposed in lieu. 

Heritage Floor Space (HFS) payments and affordable housing contributions will continue to apply across the CBD.

What are our initial thoughts?

Having reviewed the documents, our initial comments and thoughts are below:

• The changes to ‘Tower Cluster Areas’ are likely to make the amalgamation of already large sites very difficult. This is further complicated by the cap on uplift to GFA limited at 50% in the LEP.

• The extent of detail required to be delivered as part of the Stage 1 DA is complex, but it arguably provides more clarity on the process and detail compared to a site-specific planning proposal/rezoning. 

• The timing of the new design excellence for Tower Cluster Sites will be important. 

• The cost of a full design competition for Tower Cluster Sites will likely be in excess of $1 million. 

• We anticipate there will be some questions and discussions from the industry and landowners, particularly in ‘Tower Cluster’ areas, where sites are ‘isolated’ from the ability to amalgamate. 

• Questions surrounding the willingness and process of Planning Processes also remain – either beyond 50% FSR or where sites can’t feasibly be amalgamated to get to 2,000 sqm. 

• Proposed 3% levy for contributions will require an amendment of the City of Sydney Act 1988 by NSW Parliament.

• How any savings and transitional provisions apply will be an area to watch. We understand these provisions are set to follow as part of the detailed drafting of the new LEP controls.

Next Steps

The full package of documents was endorsed by Council on Monday, 17 February 2020 and will be forwarded to the NSW Department of Planning Industry and Environment for an accelerated Gateway Determination. Public Exhibition will then take place in the coming months (March/April) with the new controls expected to be implemented before the end of 2020.  

If you would like to know more about how the changes might affect you or require assistance in preparing submissions during the exhibition period, please get in touch with a member of the Knight Frank Town Planning team. 

For further information please contact:

Stephen Gouge,
Planning Manager,
Knight Frank Town Planning
Stephen.Gouge@au.knightfrank.com 
+61 410 291 014