Council - 19 December 2016

Council 19 December 2016 Item 8.1

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ECONOMY

ITEM NUMBER 8.1

SUBJECT Draft Voluntary Planning Agreement and site specific Development Control Plan for land at 180 George Street, Parramatta

REFERENCE RZ/21/2014 - D04397335

REPORT OF Project Officer Land Use LANDOWNER Eastside Investments Pty Ltd, Karimbla Properties Pty Ltd PROPONENT Karimbla Properties Pty Ltd PURPOSE: To seek Council’s endorsement to:-

publicly exhibit a draft Voluntary Planning Agreement (VPA) and draft site specific Development Control Plan (DCP) that relate to a planning proposal for land at 180 George Street, Parramatta

seek a post gateway review for the planning proposal previously issued for the subject site.

RECOMMENDATION

a) That Council endorse the draft Development Control Plan (DCP) prepared for land at 180 George Street, Parramatta, as provided at Attachment 1, for the purpose of public exhibition.

b) That a draft Voluntary Planning Agreement (VPA) document be prepared to reflect the terms outlined at Attachment 2 and that the Interim General Manager be delegated authority to resolve issues including;

the timing of payment of the monetary contribution;

the terms of the pedestrian easement to ensure it is a genuinely publicly accessible and successful space;

approval process for the design including materials, lighting and the like.

c) That Council support the applicant’s request for a broadening of the land uses

able to be included to satisfy the required minimum 1:1 as ‘commercial floorspace’ and that Council submit a post gateway review with the Department of Planning and Environment on this element of the site specific planning proposal.

d) That delegated authority be given to the Interim General Manager to

negotiate and finalise the legal drafting of the VPA on behalf of Council for the purposes of public exhibition.

e) That the draft DCP and draft VPA be placed on public exhibition concurrently

with the planning proposal for land at 180 George Street, Parramatta for a minimum period of 28 days, and the outcome of the public exhibition be


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reported back to Council.

f) Further, that Council authorise the Interim General Manager to correct any

minor inconsistencies or anomalies of an administrative nature relating to the draft DCP and VPA documentation that may arise during the finalisation process.

THE SITE 1. The subject site is located at 180 George Street, Parramatta, refer to Figure 1.

The legal description is Lots 201 - 204 in DP 1082194 and SP 74916 with a total site area of approximately 8,000m². Currently the site contains 2 storey retail developments fronting George Street and a 12 storey mixed use building fronting Charles Street containing approximately 13,500m² floorspace being used as serviced apartments.

2. A private pedestrian right of way is located on the eastern boundary of the site which provides separation from the adjoining ‘Harrisford House’, a heritage item of State significance which is located at 182 George Street, Parramatta. Harrisford House is one of the oldest houses remaining in the Parramatta CBD.

Figure 1 Location map (Source: Council’s GIS data)

BACKGROUND: 3. A planning proposal for land at 180 George Street, Parramatta was submitted

to Council on 27 November 2015 (RZ/24/2015) seeking to increase the FSR from 4:1 to 10:1 and height from 36 metres (11 storeys) to 180 metres (57 storeys). The reference design submitted alongside the planning proposal demonstrates a mixed use design option that includes 750 dwellings contained within two towers.


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4. The planning proposal was reported to Council on 11 April 2016 and Council resolved the following:

(a) That Council endorses the revised planning proposal contained at

Attachment 1 to;

permit a maximum floor space ratio of 10:1 (plus 1.5:1 design

excellence bonus)

apply no height limit but apply Clause 7.6 Airspace Operations to

this site to require consideration of Federal Government airspace

provisions

require 1:1 commercial floor space

(b) That the planning proposal be forwarded to the Department of

Planning and Environment for gateway determination.

(c) That a site specific Development Control Plan (DCP) is prepared and

reported to Council addressing the following:

height variation between the two towers

setback along the eastern boundary of the site and at ground

level retain the through site pedestrian link

podium height

(d) That Council advise the NSW Department of Planning and Environment that the CEO will be exercising the plan-making delegations for this planning proposal as authorised by Council on 26 November 2012.

(e) That Council grant delegated authority to the CEO to negotiate a

Voluntary Planning Agreement (VPA) for the delivery of public

benefit, which recognises the value uplift of the planning proposal.

(f) That the outcome of the VPA negotiations be reported to Council

prior to exhibition of the draft VPA.

(g) That Council grant delegated authority to the CEO to correct any

minor anomalies of a non-policy and administrative nature that may

arise during the amendment process.

(h) Further, that the owner be advised that it is the Council’s preference

for the building on site to be demolished.

5. The Department of Planning and Environment issued a conditional gateway

determination for the site on 17 June 2016. In keeping with the gateway determination a numerical height limit of 190m/197AHD (219m/226AHD including design excellence) has been applied to the planning proposal.

6. The applicant submitted to Council a final draft of the site specific DCP and a final letter of offer for a VPA on 1 December 2016. In keeping with Council’s resolution of 11 April 2016, this report will assess the contents of the DCP and VPA with the intention of exhibiting the documentation concurrently with the planning proposal for 180 George Street, Parramatta.

COMMERCIAL FLOOR SPACE 7. Council considered a report on the planning proposal for 180 George Street on

11 April 2016 and resolved to endorse the planning proposal subject to it being amended to include a site specific clause requiring a minimum 1:1 commercial


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floor space be provided, in keeping with the Parramatta CBD Planning Proposal (CBD PP). A gateway determination was issued by the Department of Planning and Environment on 17 June 2016 for the planning proposal associated with 180 George Street, Parramatta, in which the site specific clause was endorsed. Since this time the applicant has made written and verbal representations requesting the scope of uses within the definition of ‘commercial floorspace’ be broadened to give the applicant more flexibility when they are seeking to comply with the 1:1 commercial floor space clause.

8. The Parramatta CBD Planning Strategy as endorsed by Council on 27 April 2015 states a minimum non-residential FSR of 1:1 must be achieved for all sites in the mixed use zone of the Parramatta CBD. The policy objective of this control is to contribute employment generating floor space consistent with Parramatta’s role as a key employment centre in western Sydney. The report considered by Council on 14 March 2016 regarding the draft Parramatta CBD Planning Proposal clarifies the intent of this proposed control. A local provision is proposed which requires a minimum of 1:1 FSR of commercial development to be provided as part of a mixed use development on some sites zoned B4 Mixed Use.

9. As noted above the applicant submitted a letter dated 19 October 2016 to City of Parramatta Council seeking a review of the gateway determination to amend the wording of the site specific clause requiring 1:1 commercial floor space be provided as part of any future redevelopment of the site. The letter includes a detailed justification as to why serviced apartments should be allowed to satisfy the 1:1 commercial floor space requirement for this site. Serviced apartments are not defined as a ‘commercial premises’ under the Standard Instrument and so without the change proposed the applicant would not be able to satisfy the 1:1 commercial floor space requirement by retaining the existing or providing new serviced apartments.


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Figure 2 Floor plan option – ground level (Source: Applicant’s revised Urban Design Report)

10. Council has reviewed the applicant’s letter and revised reference design (refer

to Attachment 3) and determined on this particular site there may be some merit in allowing serviced apartments to be included as commercial floor space.

11. The serviced apartments are an existing element located on the western side of the site. In 2002 DA/2124/2001 was approved permitting the erection of 200 apartments and 1,800sqm of retail floor space. The serviced apartments are still in good condition and due to the location of the building on the site can operate separately to the proposed new form with minimal impacts and allow the remainder of the site to be re-developed.

12. Council’s position is to not include serviced apartments as a commercial land use in this circumstance. This is based on serviced apartments being comparatively low employment generators compared to the floorspace they occupy. In the case of 180 George Street the reference design demonstrates that the ground floor of the new building (see Figure 2) will include retail tenancies, as required by the DCP (discussed later in this report), and combined with the retail tenancies to be retained 1,385sqm of commercial floor space or 0.17:1 is provided. The floor space of the existing serviced apartments that are proposed to be retained are 13,715sqm. Altogether this would contribute 15,100sqm or 1.88:1 of employment generating floor space. Although serviced apartments are low employment generators the floor space provided is almost double the minimum 1:1 commercial floor space required under the endorsed planning proposal.


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13. The subject site will be required to provide 8,000sqm of commercial floor space to achieve the 1:1 requirement. Ideally this would be delivered in the form of office space and business premises, however due to flooding constraints it is proposed to locate the car parking for the site in the podium, (refer to Figure 2) making any substantial office space difficult to deliver. In responding to the flooding constraints the proposed layout restricts the delivery of commercial floor space to small commercial suites sleeving the car park. This is an effective method at ground level to activate the streetscape, however above ground, as presented in the applicant’s letter this is a less successful use of space. The desire to provide (sleeved) above ground parking within the podium is also a response to the desire to retain the existing 12 storey Charles Street element on the site making deeper basement excavation impractical.

14. Whilst the proposed rewording of the site specific clause allowing serviced apartments to be a land use that satisfies the 1:1 commercial floor space is not fully consistent with the CBD PP, Council notes there are special circumstances that apply to this site. Council has assessed the site on merit noting that the existing serviced apartments are relatively new and can be operated as a standalone building, that 1.88:1 employment generating floor space will be provided as demonstrated in the reference design and that due to the large area of the site and flooding constraints it will be difficult to provide 1:1 commercial floor space in keeping with the CBD PP.

15. The Council report of 11 April 2016, noted that if the serviced apartment element of the site were to be demolished and the entirety of the site redeveloped, the applicant could more readily accommodate the required 1:1 commercial floor space on the site. Council resolved on 11 April 2016:

(h) Further, that the owner be advised that it is the Council’s preference for the building on site to be demolished.

Whilst the resolution of Council indicated that demolition of the existing building on site would be Council’s preference it was not an absolute requirement that this building be demolished. The applicant has indicated their preference for it to be retained. After having considered the more detailed response/issues raised by the applicant Council Officers accept that a suitable outcome can be achieved with the existing serviced apartment building being retained.

16. After further consideration of the conditions of the site, Council’s previous

determination and the issues subsequently raised by the applicant it is accepted there is some merit in amending the wording of the site specific clause allowing the floor space of the serviced apartments to satisfy the 1:1 commercial floor space requirement for the site. However, this should not be seen as a precedent that would apply to all sites as the recommendation of Council Officers in this case is heavily influenced by the fact that the serviced apartments are an existing use on this site.

DRAFT DEVELOPMENT CONTROL PLAN

17. A draft DCP was prepared by the applicant and submitted to Council in keeping

with Council’s resolution of 11 April 2016. After a series of revisions and a meeting with Council Officers the applicant submitted a final draft DCP on 1 December 2016 (refer to Attachment 1).


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18. The draft DCP was informed by the planning proposal (revised to comply with DP&E’s gateway determination) and accompanying reference design. Council resolved on 11 April 2016 that the following urban design issues for the planning proposal for land at 180 George Street would be addressed in a site specific DCP:

- Height variation between the two towers - Podium height - Setback along the eastern boundary of the site and at ground level retain

the through site pedestrian link. These issues are discussed below.

Tower height variation 19. The original planning proposal and accompanying urban design report

submitted to Council on 24 February 2016 featured a dual tower form with an equal height of 180m (55 storeys). Council Officers advised it was preferred that the two towers have a minimum height variation of 10 storeys (approximately 20% of the proposed height). As detailed in the Council report of 11 April 2016, from certain viewpoints towers at the same height appear as a single building form and can seem monotonous. A notable height variation between the two towers will reduce this effect, creating visual interest and diversity to deliver a positive contribution and more distinctive articulation to the city skyline.

20. Council resolved on 11 April 2016 to amend the planning proposal so no height limit applied to the subject site to both facilitate a meaningful tower height variation and ensure consistency with the Parramatta CBD Planning Strategy adopted on 27 April 2015, and now the Parramatta CBD Planning Proposal adopted by Council on 11 April 2016.

21. As noted above, the Department of Planning and Environment issued a conditional gateway determination for the site on 17 June 2016, the following is an extract:

1(a) Amend the planning proposal so that an appropriate maximum height of building control is specified to enable an FSR of 10:1 to be achieved and to allow for a minimum of 10 storeys height difference between any new towers built within the site.

In keeping with the gateway determination the planning proposal has been amended, applying a numeric height limit of 190m to the subject site. The height variation as detailed in the Council report and gateway determination has been inserted into the draft DCP submitted by the applicant.

Podium height 22. Due to the location of the site fronting Charles Street, George Street, the

Parramatta River and adjoining Harrisford House, a range of podium heights is required to ensure the future built form responds to the context of the site. The applicant submitted a draft DCP on 17 August 2016 responding to the podium height limits discussed in the 11 April 2016 Council report. These limits are a maximum street wall height of 6 storeys to the Charles Street frontage and 4 storeys to the George Street frontage.


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23. After further assessment and consideration of the context of the site Council Officers have determined a 2 to 3 storey podium height fronting George Street and the eastern boundary is more appropriate for the following reasons:

- Harrisford House, the adjoining heritage property to the east is two storeys (see Figure 3).

- An established three storey street wall fronts George Street, with approved developments between Charles and Harris Street featuring three storey podiums.

- A site specific DCP for 184-188 George Street, Parramatta (adjoining Harrisford House on the opposite side) was adopted by Council on 29 March 2016 requiring a 2 to 3 storey podium height.

24. Council Officers have determined a 2 to 3 storey podium height along the

eastern and southern (George Street) boundaries is more in keeping with the context of the site as there is an established 3 storey street wall and the reduced podium height more effectively responds to the scale of the neighbouring heritage item. The applicant has responded to Council Officer comments and the final draft DCP includes a reduced podium height.

Figure 3: Street view of the eastern edge of the site, the laneway and Harrisford House (Source: Google Maps)

Setbacks 25. The subject site adjoins heritage listed Harrisford House to the east. Setback

controls have been utilised to protect the setting of the heritage item and allow broader views to the item from George Street. In keeping with Council’s resolution of 11 April 2016 the Development Control Plan submitted by the applicant demonstrates setback controls that ensure Harrisford House remains a feature in the streetscape and is not unacceptably overwhelmed or enveloped by development on adjacent sites. This includes controls requiring a 6 metre setback for the full height of the development and length of the eastern boundary of the site, as well as a 12 metre tower setback (refer to Figure 4) which Council Officers have determined is an acceptable response to the site conditions.


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Figure 4: Indicative Floor plate of towers demonstrating tower setback from eastern boundary (Source:

Applicant’s Urban Design Report)

Assessment of DCP 26. Council Officers have assessed the draft site specific DCP and recommend

Council endorse the document at Attachment 1 for public exhibition. The controls contained within the draft DCP will guide the future built form and provide high quality living conditions for future residents whilst responding to the established streetscape, including the adjoining heritage listed Harrisford House. The issues outlined within the Council report of 11 April 2016, which assessed the planning proposal for land at 180 George Street, Parramatta have been resolved to an acceptable standard.

27. Once a site specific DCP is endorsed for the site it will become one of the policies that will guide the preparation and assessment of the design excellence brief and any future development application for the site, in conjunction with the general controls provided in PLEP 2011, the broader controls in Parramatta DCP 2011, as well as any other relevant legislation and guidelines.

PLANNING AGREEMENTS 28. A planning agreement can be made under section 93F of the Environmental

Planning and Assessment Act 1979 and is a voluntary agreement between Council and a landowner, under which the developer may be required to dedicate land, carry out works, pay a monetary contribution or provide other material public benefit, or any combination of these, to be used towards a public purpose. This may be in lieu of section 94 or s94A developer contributions, as a part substitution or an additional benefit.

29. The Act specifies that a public purpose includes the provision of public amenities or public services, the provision of affordable housing, the provision of transport or other infrastructure relating to the land, the funding of recurrent


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expenditure relating to any of these, the monitoring of the planning impacts of a development and the conservation or enhancement of the natural environment.

Current Policy Framework 30. In 2008 Council adopted the Planning Agreements Policy (prepared by Connell

Wagner) which sets out the principles managing planning agreements, matters that Council must consider in negotiating agreements, the steps in the negotiating process, public probity, notification requirements and implementation. The policy was prepared in line with requirements of the Act and Regulation which set out the legal and procedural framework for planning agreements.

31. The negotiation of a planning agreement is at Council’s discretion. Key principles of Council’s policy are that:

planning decisions will not be bought or sold through planning agreements;

development that is unacceptable on planning grounds will not be permitted because of the benefits of a planning agreement;

the benefits of the planning agreement will bear a relationship to the application;

Council will not give undue weight to a planning agreement when making a decision on a development application; and

Council will not improperly rely on its position in order to extract unreasonable public benefits under planning agreements.

32. Procedurally, Council’s policy requires:

a Council resolution to undertake negotiations on a planning agreement;

appointment of a Council Officer with delegated authority to negotiate a planning agreement on behalf of Council (this is not to be an officer with a key responsibility for the development application);

consideration of whether an independent person is required to facilitate the negotiations;

public exhibition of the draft agreement, once prepared; and

Council will ultimately make the decision as to whether to approve the planning agreement.

33. The policy framework guiding the assessment and negotiation process of VPAs is currently under review. Council has considered two reports on 27 June 2016 and 22 August 2016 which provided advice on potential amendments to Council’s Policy Framework for assessing VPAs and resolved to defer consideration of any changes to the policy framework pending an independent review of the information prepared to inform both of those reports and preparation of a discussion paper which will guide decision making on the future VPA policy framework. This work is underway and is expected to be reported to Council early in 2017.

34. Since Council initiated the independent review process of Council’s VPA Framework, Council has considered a number of draft Voluntary Planning Agreements for four (4) sites within the CBD. The draft VPAs for these sites have been assessed against the existing policy previously adopted by Council in 2008 and the recommendations of the CBD Infrastructure Funding Review Committee following their meeting of 1 March 2016, as detailed in part 2(b) below:


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(2) THAT Council concurrently pursue two Options for infrastructure funding as a

part of its review of the Parramatta CBD Planning Framework, including: (a) 4.5% section 94A levy to apply to the whole development (subject to

Ministerial approval), plus 50% value sharing for Phase 2 (being $375/m²); and

(b) 3% section 94A levy to apply to the whole development, plus 20% value sharing for Phase 1 uplift (being $150/m²) and 50% value sharing for Phase 2 uplift (being $375/m²); and

should Option (a) be successfully approved by the Minister, then the clauses and maps in the Parramatta CBD Planning Proposal that enable Option (b) be removed at that time.

35. The subject draft VPA has been assessed against these same criteria.

VPA Offer 36. The letter of offer submitted by the applicant includes the following:

A 6m pedestrian easement located on the eastern boundary of the site, connecting the Parramatta River to George Street. The proposed easement is outlined in purple, refer to Figure 5.

A monetary contribution of $7,179,300

The above is to be delivered in addition to Section 94A Development Contributions payable with any redevelopment of this site.

Figure 5 Location of laneway (Source: Applicant’s Urban Design Report)


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Assessment of Final Voluntary Planning Agreement Offer

37. The monetary contribution has been derived by applying the CBD Infrastructure

Funding Committee’s recommended $150/sqm rate to the additional Gross Floor Area permitted under the planning proposal. The planning proposal permits an FSR of 10:1, which is a 6:1 increase from the 4:1 currently permitted on the land under the PLEP 2011. The additional Gross Floor Area equates to 47,862sqm when the uplift of 6:1 is applied to the site area of 7,977sqm. By applying the recommended 20% value sharing rate (that being $150/sqm) a total contribution of $7,179,300 is calculated.

38. The pedestrian easement will contribute to the revitalisation and activation of the Parramatta River. As demonstrated in Figure 5 the proposed easement (outlined in purple) will improve access from George Street to the Parramatta River (outlined in blue) and the Parramatta Ferry Wharf. This laneway currently exists as a private pedestrian access way and it also provides a clear separation and buffer between the proposed development on 180 George Street to the adjoining heritage listed Harrisford House (outlined in red). The through site link will increase permeability, improve connections to the river foreshore and provide interaction for the enjoyment of the public with the adjoining heritage item.

39. It is recommended that Council resolve to support the letter of offer contributing $7,179,300 towards public domain works and the 6m pedestrian easement located on the eastern boundary of the site connecting the Parramatta River to George Street.

40. Further details in respect to the VPA including; the timing of payment of the monetary contribution, the terms of the easement to ensure it is a genuinely publicly accessible and successful space; design approval process with regard to finer grain elements such as materials and lighting will be the subject of further detailed negotiations through the legal drafting process.

NEXT STEPS

41. Should Council resolve to adopt the draft VPA offer a draft Voluntary Planning

Agreement and Explanatory Note will be prepared for public exhibition purposes.

42. It is recommended that the Interim General Manager be granted delegated authority to finalise the legal drafting of the planning agreement on behalf of Council.

43. Should Council see merit in the applicant’s request to amend the planning proposal, a post gateway review will be undertaken that seeks to broaden the land uses that may contribute towards the minimum quantum of commercial floor space as it applies to this site.

44. Following resolution of the post gateway review, the draft VPA and draft DCP will be publicly exhibited concurrently with the planning proposal for 180 George Street. The outcome of the public exhibition will be reported to Council at a later date.


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Kimberley Beencke Project Officer – Land Use Planning Robert Cologna Service Manager Land Use Planning Sue Weatherley Director Strategic Outcomes and Development Sue Coleman Acting Interim General Manager

ATTACHMENTS: 1 Draft DCP 5 Pages 2 Letter of Offer 2 Pages 3 Reference Design 37 Pages

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