Item 6.1 - Attachment 1
Previous Council Report
ITEM NUMBER 8.1
SUBJECT 53 Phillip Street
REFERENCE F2010/01731 - D01693161
The report recommends Council to consider closing the pedestrian
laneway at 53 Phillip Street Parramatta for sale to the adjoining property
owner taking advantage of the opportunity that Council can maximise the value
of the laneway land by negotiating a sale to this adjoining property owner
who is the only party who can realise the development potential of the
laneway land, along with open space improvements to Council land (Lot 49).
(a) That Council resolve to close permanently the pedestrian
laneway at 53 Phillip Street Parramatta (Lot 2 DP 601592) and an application
be made to the Department of Lands for road closure.
(b) That Council resolve to classify the land for the
subject pedestrian laneway to operational upon formal road closure.
(c) That Council agree in principle selling the
subject pedestrian laneway to the owner of 51 Phillip Street Parramatta
subject to further report to the Council for approval on sale terms and price
when sale negotiation is finalised.
(d) Further, that the Lord Mayor and Chief Executive Officer be
authorised to execute under seal the linen plan, Section 88B instrument,
transfer granting easement and deed of agreement if required for road
(1) The Council has been approached for over a
year by the owner of 51 Phillip Street Parramatta (the applicant) to negotiate
sale of part or whole of the adjoining Council land at 49 and 53 Phillip Street
Parramatta for combined redevelopment of the applicants property for a hotel.
(2) Currently the Council land at 49 Phillip
Street is used for open space and the Council land at 53 Phillip Street is a pedestrian
laneway. Both these land parcels are
zoned B3 Commercial Core on Councils City Centre Local Environmental Plan
and have a floor space ratio of 6:1 when consolidated with the applicants property.
(3) A concept hotel
redevelopment proposal was submitted for consultation with the Council. After consultation with Council internal
stakeholders, the following recommendation has been put forward among others
for negotiation with the applicant:
applicant has agreed in principle to purchase the laneway subject to terms of
sale and price to be negotiated.
reference, a location plan showing the properties is attached. Also attached are drawings submitted by the
applicant on the concept hotel development.
(6) The subject pedestrian laneway was part of
a larger parcel known as Lot 2 DP 200769 resumed by the Council in 1978 for
road purpose. At the time of resumption,
this larger land parcel was a private legal right of way providing access for
adjoining properties known as 49 & 51 Phillip Street nowadays.
(7) In 1979, Lot 2 DP 200769 was subdivided to
create the current laneway parcel (Lot 2 DP 601592).
(8) Accordingly a formal permanent road closure
under Roads Act 1993 is required to remove the public road status of this land
parcel. It is also necessary for the
Council to classify this land parcel upon formal road closure to operational
under the Local Government Act 1993 to facilitate sale.
(9) Services including Council storm water
drain and Telstra phone lines are found within the pedestrian laneway. In
addition, the pedestrian laneway provides access to the fire hydrant booster
valve (the door of which opens onto the pedestrian laneway) of 55 Phillip
Street. All these need to be protected
by creation of easement prior to sale. Pedestrian use of this laneway will also be
maintained by creation of an easement.
(10) Obviously such easements when created would
preclude building development on the land for the laneway and have serious
limit on sale value if sold for development on its own.
(11) Accordingly it is recommended that Council
should consider selling the subject pedestrian laneway to the applicant for
combined redevelopment to achieve the maximum sale value, as the applicant can
take full advantage of floor space ratio available for the consolidated site to
increase the floor space of building development on 51 Phillip Street.
(12) The other adjoining property at 55 Phillip Street
is a strata titled property in separate ownership with no possibility for
combined redevelopment with the subject laneway.
(13) On the basis of sale to the applicant, the
value of the subject pedestrian laneway is considered to be in the vicinity of
$650,000. A final sale price will be
determined when the laneway is legally closed and the Council is in a position
(14) While the Councils open space at 49 Phillip
Street is not for sale, the applicant is prepared to negotiate an upgrade at
his costs and to Councils urban design requirements the Council open space to
complement his hotel development. Use of
voluntary planning agreement may be adopted to negotiate terms including additional
floor space for the proposed hotel development.
CONSULTATION & TIMING
(15) The Councils Development Services Unit, Urban Design Unit, Transport and Safety Unit and Catchment Management Unit have been consulted in the course of negotiation with the applicant.
(16) In summary, the applicant has proposed to consolidate the Council land at 49 and 53 Phillip Street with his property at 51 Phillip Street for hotel redevelopment. The following major considerations on the proposal have been identified after meetings and discussions between the applicant and Council officers:
(17) Sale of this Council land is not recommended, as this is the only open space land parcel available in the Parramatta CBD. This Council land parcel has the potential to establish a formal identity at Phillip Street for the Erby Place car park site when the time comes for its redevelopment. It also provides additional floor space for the Erby Place car park site when amalgamated for redevelopment. In this connection, the current rear access at Erby Place for 55 and 69 Phillip Street needs to be replaced by access from Horwood Place.
(18) This has been acknowledged by the applicant who now intends to negotiate with the Council to upgrade at his costs this open space to complement the hotel development including leasing part of the open space land if possible for outdoor dining use. Use of voluntary planning agreement has been suggested.
(19) Negotiation will be further progressed when applicant is able to make a decision to purchase the Council laneway to proceed with hotel development.
(20) The concept hotel development proposal has been considered by Council officers and found to be deficient in areas of planning control and urban design principles. The applicant is going to review the hotel design taking into consideration the comments of the Council officers.
(21) The applicant has asked for and been provided an indicative sale price for the Council laneway at 53 Phillip Street to review the feasibility of the hotel project. Obviously sale of the Council laneway will not proceed if the hotel project turns out to be not financially feasible.
(22) This laneway provides a pedestrian link between Phillip Street and the Erby Place car park. Easements will be created on the title of the land prior to sale to maintain access for the adjoining 55 Phillip Street to its fire hydrant inlet at the laneway, to protect Councils existing storm water drain and to maintain current pedestrian access.
(23) The Council officers have no objection to closing this laneway for sale to the applicant who is the only party able to utilise the floor space due to the laneway land for additional floor space building development at 51 Phillip Street.
(24) The applicant has agreed in principle to purchase this laneway subject to terms of sale and price to be determined. As closing the laneway under the Roads Act takes at least a year to complete, it is highly recommended that Council while having negotiation with the applicant on sale terms and price should take parallel action to proceed with road closing. There will not be any adverse affectation on use of the laneway if sale fails to proceed following formal road closing.
FINANCIAL IMPLICATION FOR COUNCIL
(25) Council may
receive revenue in the vicinity of $650,000 (subject to final valuation) in the
disposal of the pedestrian laneway.
(26) Council may
also receive an upgrade at applicants costs to Councils open space at 49
Phillip Street. Details of the upgrade
works are yet to be determined and negotiated.
Property Program Manager
Concept hotel development