NSW Government takes control of Sydney Town Hall Square redevelopment

The New South Wales government has intervened to take control of the City of Sydney’s plans to redevelop Town Hall Square. Planning Minister Paul Scully declared the $150 million project a ‘state significant development’ following advice from the Independent Planning Commission.

The proposed redevelopment aims to create a 4,500-square-metre plaza by demolishing seven buildings in the central business district. Under the new designation, the City of Sydney must submit a State Significant Development application to be independently assessed by the Department of Planning and approved by the Independent Planning Commission.

City of Sydney Lord Mayor Clover Moore expressed concern that the intervention is unusual, noting that the government typically takes planning decisions away from councils to accelerate development rather than slow it down. She warned that delays could increase costs for ratepayers. Conversely, Paul Nicolaou, executive director of Business Sydney, welcomed the move as a ‘victory for common sense,’ citing concerns over the project's cost and its impact on local businesses.