Plans for Sydney’s controversial new public square in doubt after NSW government intervention

Plans for a grand new public square in centre of Sydney are in doubt after the New South Wales planning minister declared the project “state significant”, wresting the approval process away from the City of Sydney.

The lord mayor, Clover Moore, released renders in August for the plaza opposite Sydney’s town hall. The design for the space, which the council had expected to be completed by 2031, include a semi-circular clearing projecting eastwards towards Hyde park, with a fountain and a grove of native trees.

The plans have been the source of a battle between Moore and the NSW premier, Chris Minns, who has said he does not support the project, describing it as “too expensive, majorly disruptive for Sydney”, and said it would close down businesses in the area. It had also become a flashpoint in a culture war, ridiculed in the Sydney tabloid The Daily Telegraph, which published AI-generated images of the new square heaving with protesters.

The council began finalising discussions with the owners of the last of seven buildings needed to be acquired and bulldozed for the project in recent months. The demolition and construction was expected to cost $150m.

But on Friday, the planning minister, Paul Scully announced he had declared the project a state significant development (SSD), after seeking advice from the NSW Independent Planning Commission, taking the decision for approval away from the council.

“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,” he said.

They have also been opposed by Woolworths, whose town hall location occupies one of the buildings that would be demolished under the plans.

Scully said the IPC would make the determination on any proposal submitted by the City of Sydney. Under the SSD pathway, the planning minister himself is the consent authority, unless the IPC is delegated to take on that role.

In a surprise statement on Friday, Moore welcomed the decision to declare the project state significant, saying, “I could not agree more”.

“Regardless of who assesses it, we remain confident in the merits of the proposal and see no planning reason why it should not ultimately be supported.”

“The City owns the buildings, has responsibly saved the money over a 40 year period to deliver the project debt-free, and has had some of the world’s leading designers and architects work on the plans.”

“This has, however, been an unusual intervention. The government generally takes planning decisions away from councils to speed up development, not slow it down, and in this case it stepped in before a development application even existed.”