Agenda of Local Planning Panel - Tuesday, 15 March 2022

Local Planning Panel 15 March 2022 Item 5.1

DEVELOPMENT APPLICATION

ITEM NUMBER 5.1

SUBJECT PUBLIC MEETING: 256 Kissing Point Road, DUNDAS VALLEY (Lot 10 DP 719923)

DESCRIPTION Demolition of existing carwash facility, construction of a new carwash facility. No proposed works to existing service station.

REFERENCE DA/800/2021 - D08411414

APPLICANT/S Jasbe Dundas Pty Ltd

OWNERS 256 Kissing Point Road Pty Ltd

REPORT OF Group Manager Development and Traffic Services

RECOMMENDED APPROVAL

DATE OF REPORT – 09/02/2022

REASON FOR REFERRAL TO LPP

The item is being referred to the Parramatta Local Planning Panel as more than 10 submissions were received (9 during the formal notification period and 6 submissions being received after the conclusion of the formal period).

EXECUTIVE SUMMARY

This is a summary of the full assessment of the application as outlined in Attachment 1, the Section s4.15 Assessment Report.

The proposed development involves the demolition the existing automated car wash and associated infrastructure, and the construction of two (2) automated car wash bays, three (3) self-serve wash bays as well as four (4) vacuum bays. Acoustic mitigation measures, in the form of acoustic walls to the north and east boundaries of the proposed car wash areas also form part of the proposal.

The subject site and surrounding areas to the north are zoned as R2 Low Density Residential under the Parramatta Local Environmental Plan 2011. The proposed development falls under the definition of ‘Service Station’ which is prohibited in the R2 zone.

Notwithstanding, the existing car wash at the subject site was first granted Development Consent in 1991 and through subsequent approvals in improvements, it has continued to operate to the present time. Consequently, the subject site benefits from ‘existing use rights’ pursuant to Section 4.65 of the Environmental Planning and Assessment Act 1979. The proposed development is considered an enlargement of the existing car wash which is consistent with provisions contained in Clause 167 of the Environmental Planning and Assessment Regulation 2021.

The application was notified in accordance with Council’s consolidated notification procedures. In response, nine (9) submissions were received during the formal period with six (6) submissions being received the after the closing date. The key issues raised in the submissions received are listed as follows:

- Increase in traffic congestion

- Noise pollution/ambient acoustics

- Antisocial behavior

- Rubbish coming from the service station

- Loss of visual privacy

- Impact on vegetation on adjoining properties

- Loss of views

- Scope of the development within and R2 zone

- Light pollution.

The application was referred to internal departments including Council’s Traffic & Transport Investigations Engineer, Environmental Health Team, Heritage Advisor and Development Engineer who raised no objection to the proposal, subject to conditions. The application was also referred to Transport for NSW pursuant to State Environmental Planning Policy (Transport and Infrastructure) 2021 of which, no objections have been raised, subject to the imposition of conditions.

The application was assessed having regard to the relevant environmental planning instruments including the Parramatta Local Environmental Plan 2011. The proposed development is considered to generally satisfy the requirements of the applicable planning instruments and the Parramatta Development Control Plan 2011 (DCP).

Having regard to the applicable planning provisions and notwithstanding the issues raised in the submissions, the proposal is considered satisfactory subject to conditions of consent.

RECOMMENDATION

(a) That the Parramatta Local Planning Panel (PLPP), exercising the functions of Council, pursuant to Section 4.16(3) of the Environmental Planning and Assessment Act 1979, issue development consent to DA/800/2021- Demolition of existing carwash facility, construction of a new carwash facility on land at Lot 10 DP 719923, 256 Kissing Point Road, Dundas Valley NSW 2117.

(b) Further, that objectors be advised of the Panel’s decision.

REASONS FOR APPROVAL

1. The proposed development benefits from existing use rights and satisfies the requirements of all applicable planning controls.

2. The development will not create adverse impacts onto the locality and will remain compatible with the existing area.

3. The proposed development incorporates sufficient measures to safeguard the existing acoustic amenities.

4. For the reasons above, approval of the applcation is in the public interest.

Matthieu Santoso

Development Assessment Officer

Attachments:

1 ⇩	Assessment Report & Draft Conditions	54 Pages
2 ⇩	Locality Plan	1 Page
3 ⇩	Plans used during Assessment (PLPP)	19 Pages
4 ⇩	Plan of Management	4 Pages
5 ⇩	BP Dundas Carwash EMP	118 Pages
6 ⇩	Traffic & Parking Impact Assessment	21 Pages
7 ⇩	SEPP 55 letter	39 Pages
8 ⇩	Arboricultural Impact Assessment	14 Pages
9 ⇩	Noise Assessment Report	24 Pages
10 ⇩	Statement of Environmental Effects	22 Pages

REFERENCE MATERIAL

Local Planning Panel 15 March 2022 Item 5.2

DEVELOPMENT APPLICATION

ITEM NUMBER 5.2

SUBJECT OUTSIDE PUBLIC MEETING: 37A Grand Avenue, CAMELLIA (Lot 2 DP 539890)

DESCRIPTION Change of Use to a Freight Transport Facility. The development is identified as Designated Development in accordance with Clause 2.7 of the State Environmental Planning Policy (Resilience and Hazards) 2021.

REFERENCE DA/1055/2021 - D08416648

APPLICANT/S Streamline Container Services

OWNERS Camellia Grande Pty Ltd

REPORT OF Group Manager Development and Traffic Services

RECOMMENDED REFUSAL

REASON FOR REFERRAL TO LPP

In accordance with Schedule 2 of the Local Planning Panels Direction 2020, the application is referred to the Parramatta Local Planning Panel as the development is identified as Designated Development.

EXECUTIVE SUMMARY

This is a summary of the full assessment of the application as outlined in Attachment 1, the Section 4.15 Assessment Report.

The Property

The subject property is known as 37A Grand Avenue, Camellia (Lot 2 DP 539890). The property is an industrial allotment with an approximate site area of 32,800m² and adjoins the Parramatta River to the rear. The property has four (4) vehicular access points to Grand Avenue and has been divided into six (6) areas that are all leased separately.

The subject property and its surrounding properties located along the southern side of Parramatta River are zoned as IN3 Heavy Industry. Properties within vicinity to the north of the subject property are zoned as W2 Recreational Waterways, RE1 Public Recreation, R2 Low Density Residential and IN1 General Industrial.

The property is actively declared as a remediation site under the Contaminated Lands Management Act 1997.

The Proposal

· Retrospective approval for the use of part of the site (lease area no. 2) as a freight transport facility

The freight transport facility operator will have thirteen (13) staff with the hours of operation of 27 hours a day, 7 days a week. The use will have heavy and light vehicle movements in and out of the site throughout the day.

Permissibility

The subject property is zoned as IN3 Heavy Industrial under the Parramatta Local Environmental Plan 2011. The proposal being defined as freight transport facility is a permissible development within the IN3 zone.

The proposed land use is not consistent with the objectives of IN3 Heavy Industrial zoning.

Notification

The subject site was notified and advertised in accordance with Schedule 1 of the Environmental Planning and Assessment Act 1979. In response, five (5) submissions were received with concerns primarily relating to acoustic impacts and hours of operation.

Assessment

The application was assessed against the relevant environmental planning instruments including the State Environmental Planning Policy (Resilience and Hazards) 2021, State Environmental Planning Policy (Biodiversity and Conservation) 2021and the Parramatta Local Environmental Plan 2011 as well as the applicable Parramatta Development Control Plan 2011. The development proposal in its current form does not comply with the provisions within the environmental planning instruments and development control plan.

The application is recommended for refusal on the basis of insufficient information preventing a complete assessment to be undertaken.

RECOMMENDATION

(a) That the Parramatta Local Planning Panel (PLPP), exercising the functions of Council, refuse development consent to DA/1055/2021 for development consent for use of part of the site as a freight transport facility at 37A Grand Avenue, Camellia NSW 2142.

(b) Further, that submitters be advised of the decision.

REASONS FOR REFUSAL

1. State Environmental Planning Policy (Resilience and Hazards) 2021

a. Pursuant to Section 4.15(1)(a)(i) of the Environmental Planning and Assessment Act 1979, insufficient information has been submitted to demonstrate that the site is suitable for the proposed use under the provisions of Clause 4.6 of SEPP (Resilience and Hazards) 2021.

2. State Environmental Planning Policy (Biodiversity and Conservation) 2021

a. Pursuant to Section 4.15(1)(a)(i) of the Environmental Planning and Assessment Act 1979, insufficient information has been submitted to demonstrate that the property and proposed use are consistent with the provisions of Clause 2.7, 2.8 & 2.10 of SEPP (Biodiversity and Conservation) 2021.

3. Parramatta Local Environmental Plan 2011

a. Pursuant to Section 4.15(1)(a)(i) of the Environmental Planning and Assessment Act 1979, the proposed development does not meet compliance and/or consist of insufficient information to determine its compliance to the following matters of the Parramatta Local Environmental Plan 2011:

i. Objectives IN3 Heavy Industrial: The proposed land use has not taken into consideration the context and setting of the subject site as the use will generate undue adverse effects of industry on the R2 Low Density Residential zoned properties to the north of the site as a result of acoustic and dust impacts.

ii. Clause 5.10 Heritage conservation: Insufficient information has been submitted to demonstrate that the contaminated material on site will not cause adverse impact to I1 Wetlands located along the property’s Parramatta River foreshore.

iii. Clause 5.21 Flood planning: Insufficient information has been submitted to demonstrate that the use is appropriate to the property’s flood affectation.

iv. Clause 6.2 Earthworks: Insufficient information has been submitted to demonstrate that the earthworks undertaken on the property without consent are in accordance with Clause 6.2(3) of LEP 2011, and that it will not create detrimental effects to the Parramatta River.

v. Clause 6.5 Water Protection: Insufficient information has been submitted to demonstrate that the existing capping on site is sufficient to contain the contaminated material from seeping into the riparian land.

vi. Clause 6.7 Affected by a foreshore building line: Insufficient information has been submitted to demonstrate that the existing capping on site is sufficient to contain the contaminated material and will not cause adverse impact to the surrounding foreshore area.

4. Parramatta Development Control Plan 2011

a. Pursuant to Section 4.15(1)(a)(iii) of the Environmental Planning and Assessment Act 1979, the proposed development does not meet compliance and/or consist of insufficient information to determine its compliance to the following matters of the Parramatta Development Control Plan 2011:

i. Section 2.4.2 Water Management

ii. Section 2.4.3 Soil Management

iii. Section 3.3.3 Visual and Acoustic Privacy

iv. Section 3.3.6 Water Sensitive Urban Design

v. Section 3.3.7 Waste Management

vi. Section 3.5 Heritage

5. Environmental Planning and Assessment Act 1979

a. Pursuant to Section 4.15(1)(b) and (c) of the Environmental Planning and Assessment Act 1979, the site is not considered suitable for the proposed development.

b. Pursuant to Section 4.15(1)(d) and (e) of the Environmental Planning and Assessment Act 1979, the adverse impacts generated by the development due to non-compliance with the applicable planning controls are detrimental to the established residential community within the vicinity and as such, it is not considered to be in the wider public interest.

John Martinez

Senior Development Assessment Officer

Attachments:

1 ⇩	Assessment Report	19 Pages
2 ⇩	Plan used during assessment	1 Page
3 ⇩	Environmental Impact Statement	73 Pages
4 ⇩	Planning Secretary’s Environmental Assessment Requirements	7 Pages
5 ⇩	Acoustic Report	5 Pages
6 ⇩	Transport Statement	12 Pages
7 ⇩	Ecological Impact Assessment	41 Pages

REFERENCE MATERIAL

Local Planning Panel 15 March 2022 Item 6.1

INNOVATIVE

ITEM NUMBER 6.1

SUBJECT Planning Proposal - 180 and 180D George Street Parramatta

REFERENCE RZ/1/2022 -

APPLICANT/S Karimbla Properties (No.13) Pty Ltd

OWNERS Karimbla Properties (No.13) Pty Ltd

REPORT OF Senior Project Officer Land Use

Development applications considered by Sydney central city planning panel

DA/480/2018 determined 16 October 2019: Construction of 2 mixed use towers (57 and 66 storeys) comprising 767 residential units, 216 serviced apartments, 2,329sqm of retail floor space, a child care centre, a commercial gymnasium, and 5 basement levels, public domain upgrades including pedestrian through-site link.

PURPOSE

The purpose of this report is to seek advice from the Local Planning Panel on a Planning Proposal for land located at 180 and 180D George Street, Parramatta.

RECOMMENDATION

The Local Planning Panel in its advice to Council consider the following recommendation:

That Council does not support, for the purposes of seeking a Gateway Determination, the Planning Proposal at Attachment 1 for land at 180 and 180D George Street, Parramatta which seeks to amend clause 7.12(2) of the Parramatta Local Environmental Plan 2011 to reduce the minimum floor space ratio for defined non-residential land uses from 1:1 to 0.43:1, for the following reasons:

a) The Planning Proposal is inconsistent with Council’s endorsed policy position to increase non-residential land uses within the Parramatta CBD.

b) Reduction of the 1:1 commercial floorspace requirement for the subject site may set a precedent for further removal of employment generating land uses in the Parramatta CBD.

c) Serviced apartments will continue to support Parramatta’s long term economic activity and growth and there is insufficient evidence provided by the applicant to support the argument that short stay accommodation is not viable in the medium to long term.

d) The location of the subject site is a competitive position for serviced apartments.

e) Gradual removal of employment generating land uses risks the long-term economic growth of Parramatta City Centre, including Parramatta’s emergent visitor economy.

f) The proposed conversion of serviced apartments to residential apartments may not result in increased retail spending, due to higher investor ownership patterns in the Parramatta CBD.

g) The proposed conversion of serviced apartments to residential units do not demonstrate compliance with the Apartment Design Guide (ADG) of the State Environmental Planning Policy 65 (Residential Design Quality of Apartment Buildings) 2002.

SITE DESCRIPTION

1. The subject site is located at 180 and 180D George Street, Parramatta on the north-eastern corner of the intersection of George Street and Charles Street at the eastern end of the Parramatta Central Business District (CBD). Refer Figure 1.

2. The site is an irregular shaped lot and has a combined area of 7,978.5sqm. The site has a primary south-facing frontage to George Street, primary west-facing frontage to Charles Street and a north/north-east rear boundary to the Parramatta River Foreshore Reserve. To the immediate east is a state listed heritage item and potential archaeological site, known as Harrisford (refer Figure 1).

Figure 1 – Location Map - 180 George Street Parramatta (subject site)

3. The western portion of the site is occupied by a 10-storey building which previously operated exclusively as Meriton Serviced Apartments. The building was approved for a change of use in 2018 (DA/480/2018) to operate as a mixed use development consisting of residential units and ground floor retail, restaurant and business premises.

4. The remainder of the site is under construction for a new mixed-use development comprising of two towers containing residential accommodation, serviced apartments, retail floor space, a child care centre, a gym and a five-level basement car park.

CURRENT PLANNING CONTROLS

5. The current planning controls for the site under the Parramatta Local Environmental Plan 2011 (PLEP 2011) are as follows (and shown in Figures 2 – 7):

a. B4 Mixed Use Zone

b. Maximum Floor Space Ratio of 10:1 (11.5:1 including design competition bonus)

c. Maximum Height of Buildings of 190m (218.5m including design competition bonus)

d. Additional local provision for the site that requires a minimum FSR of 1:1 be provided as employment generating floor space comprising of the following uses: commercial premises, tourist and visitor accommodation, centre based childcare facilities and serviced apartments.

Figure 2 – B4 Mixed Use Zone under PLEP 2011 as outlined in blue

Figure 3 – Maximum Floor Space Ratio (10:1) under PLEP 2011 (11.5 including design competition bonus) as outlined in blue

Figure 4 – Maximum Height of Building 190m under PLEP 2011 (218.5m including design competition bonus)

Figure 5 – Additional Local Provision Map (7.12) under PLEP 2011

BACKGROUND

6. In November 2015, the applicant lodged a planning proposal for the subject site, seeking amendments to site specific planning controls under the PLEP 2011. The proposed amendments were sought for the purposes of facilitating a new mixed use development at 180 George Street, Parramatta. The planning proposal requested:

a. An increase in the maximum FSR from 4:1 to 10:1.

b. An increase in building height from 36m to 180m.

7. On 11 April 2016, Council considered the planning proposal and endorsed its submission to the, then, Department of Planning, Industry and Environment (DPIE) for a Gateway Determination subject to certain changes. These involved:

a. Applying no height limit to the site, but to apply Clause 7.6 Airspace Operations to require consideration of Federal Government airspace provisions.

b. Imposing a site specific clause requiring a 1:1 commercial floorspace for future development.

8. The site specific clause requiring a 1:1 commercial floorspace originates from the Parramatta CBD Planning Strategy (endorsed on 27 April 2015). The Strategy 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 floorspace consistent with Parramatta’s role as a key employment centre in Western Sydney. The Parramatta CBD Planning Proposal (endorsed on 15 June 2021) reinforces this approach as a policy position in the Parramatta LEP 2011 as part of its proposed amendments.

9. At the 11 April 2016 meeting, it was acknowledged that if the existing 10 storey building on the western portion of the site operating as Meriton Serviced Apartments were to be retained, the development would have difficulty in complying with the 1:1 commercial floorspace requirement. At the 11 April 2016 meeting, Council resolved to advise the owner of the site that it was Council’s preference for this building to be demolished, noting the applicant could then more easily accommodate the commercial floorspace on the site. Demolition of the building was not proposed by the applicant.

10. The Planning Proposal was subsequently submitted to the then DPIE for a Gateway Determination, which was issued on 17 June 2016.

11. In October 2016, the applicant requested that Council seek a Gateway Determination Review to amend the wording of the site-specific commercial floorspace clause to include serviced apartments as a land use capable of satisfying the 1:1 requirement. The rationale for this request was that the existing 10 storey serviced apartment building could contribute to satisfying the clause, as the applicant’s preference was to not demolish the building and retain it as part of the planned redevelopment of the site.

12. Under the Standard Instrument for local environmental plans, serviced apartments are defined as a land use under the group term ‘tourist and visitor accommodation’. Serviced apartments are not defined under the group term ‘commercial premises’. Therefore, neither the Parramatta CBD Planning Strategy nor the Parramatta CBD Planning Proposal had considered serviced apartments as a land use to satisfy the minimum 1:1 FSR provision.

13. On 19 December 2019, the matter was reported to Council with a recommendation to support the broadening of land uses under the clause to include serviced apartments. The Council officer recommendation was based on special circumstances that generated site specific merit for an amendment to be supported. The following reasons were put forward in that recommendation:

a. Existing serviced apartments: The serviced apartments were an existing element located on the western side of the site. They were still in good condition and due to their location, could operate separately to the proposed new development with minimal impacts and allow the remainder of the site to be redeveloped.

b. Quantum of commercial floorspace provision including existing serviced apartments: As noted above, Council’s position at the time was to not include serviced apartments as a commercial use. This was based on serviced apartments being comparatively low employment generators compared to the floorspace they occupy. Notwithstanding this position, the quantum of commercial floorspace on the site would have amounted to 15,100sqm or 1.88:1 if calculated to include the existing serviced apartments, existing retail tenancies that were intended to be retained and the new ground floor retail tenancies that were proposed as part of the redevelopment. Altogether, a commercial floorspace of 1.88:1 would achieve almost double the minimum 1:1 requirement or 8,000sqm of employment generating floorspace required for the site.

c. Flood constraints: Ideally the minimum 1:1 or 8,000sqm of commercial floorspace would have been delivered in the form of office space and business premises, however due to flooding constraints, the proposed layout of the development restricted the delivery of commercial floorspace to only small commercial suites sleeving the proposed car park in the buildings podium, making any substantial office space difficult to deliver on the site.

14. At the 19 December 2016 meeting, Council endorsed the Planning Proposal for submission to the then DPIE for a Gateway Determination review request. The recommendation endorsed in the report (and that formed part of the submission to the DPIE) noted that support for the request was heavily influenced by the fact that serviced apartments were an existing use on the site and they were likely to remain so in response to the applicant’s desire to retain the building and their continued operation. On 10 January 2017 the then DPIE issued an alteration to the Gateway Determination approving the requested change.

15. The amended planning proposal was exhibited between 22 March – 21 April 2017. On 14 August 2017, Council resolved to endorse the proposed amendments to the PLEP 2011 in relation to the site. The amendments were finalised within the PLEP 2011 on 20 April 2018 and included:

a. An increase to the maximum building height from 36m to 190m (218.5m including design competition bonus).

b. An increase to the FSR from 4:1 to 10:1 (11.5:1 including design competition bonus).

c. Applying a site specific provision that requires a minimum FSR of 1:1 be provided as employment generating floor space comprising of the following uses: commercial premises, tourist and visitor accommodation, centre based child care facilities and serviced apartments.

d. Require Clause 7.6 (Airspace Operations) to apply to the site.

16. Following the gazettal, the applicant lodged a development application seeking approval for the construction of a new mixed-use development on the site. This application was approved by the Sydney Central City Planning Panel under DA/480/2018 on 9 October 2018. This DA has been amended under multiple modifications during its development phase, including a focus on reducing the service apartment component of the development.

17. An overview of the development application history of the site relevant to the Planning Proposal is provided in Table 1 below.

Table 1 – Development Application History - 180 George Street, Parramatta

DA reference	Description
DA/480/2018	Construction of 2 mixed use towers (57 and 66 storeys) comprising 767 residential units, 216 serviced apartments, 2,329sqm of retail floor space, a child care centre, a commercial gymnasium, and 5 basement levels containing space for a total of 640 cars, 188 bicycles; public domain upgrades including pedestrian through-site link. Approved 9 October 2019.
DA/513/2021	Part change of use from serviced apartments to residential units on Levels 31-42 in the approved South Tower, internal configuration changes to apartments on levels 31-42 in the south tower, resulting in a reduction of 12 units. Total number of serviced apartments 182. Approved 21 September 2021 The amendments resulted in a reduction of the total commercial FSR of the development to 2.03:1.
DA/789/2021	Part change of use to convert 122 serviced apartments to 122 residential units on Levels 13-39 of the southern tower. Approved 16 November 2021 The amendments resulted in a reduction of the total commercial FSR of the development to 1.02:1.

18. Based on the latest approval under DA/789/2021, the total non-residential FSR for the entire development is 1.02:1. This includes new and existing retail (total 2,414sqm), the childcare centre (598sqm), additional commercial floorspace provided to the development (totaling 380sqm) and 60 serviced apartments (4,801sqm). The 1.02:1 FSR for the development remains consistent with clause 7.12(2) of the PLEP 2011, that is provides a minimum 1:1 non-residential FSR requirement for the site.

DESCRIPTION OF PLANNING PROPOSAL

19. The objective of the Planning Proposal is to convert the remaining 60 serviced apartments to residential apartments, therefore reducing the total commercial floor space ratio of the site to 0.43:1. To facilitate this objective, the Planning Proposal seeks to amend Clause 7.12(2) of the PLEP 2011 that applies to the subject site. Clause 7.12(2) reads:

(2) Despite clauses 4.4 and 7.2, the minimum floor space ratio for a building on land to which this clause applies that is used for any of the following purposes is 1:1 –

(a) Commercial premises,

(b) Tourist and visitor accommodation,

(c) Centre-based child care facilities,

(d) Serviced apartments.

20. The conversion of 60 serviced apartments to residential will result in a:

a. Total residential gross floor area (GFA) of 87,971sqm (11.03:1 FSR)

b. Total non-residential gross floor area (GFA) of 3,492sqm (0.43:1 FSR)

21. The Planning Proposal therefore requests an amendment to Clause 7.12(2) to reduce the minimum FSR to 0.43:1.

22. It is noted that the proponent enquired about facilitating the conversion of serviced apartments to residential through a Clause 4.6 (Exception to Development Standards) application under the PLEP 2011. However, this was not accepted as the proposed conversion is inconsistent with Clause 7.12(2) and cannot be considered under Clause 4.6 of the PLEP 2011 as it significantly exceeds the 5% limit allowed for variations to development standards relating to floor space ratios (refer to Clause 4.6(8)(ca) of the PLEP 2011 and note the clause only applies to DAs not modifications).

PLANNING PROPOSAL ASSESSMENT

23. The Planning Proposal is accompanied by supporting evidence, including a ‘Strategic Positioning Paper – 180 George Street, Parramatta’ prepared by Urbis (November 2021) for Meriton (the proponent). The Strategic Positioning Paper is provided as Attachment 2 to this report. Indicative Concept Plans for the proposed residential units were also submitted. These are provided as Attachment 3 to this report.

24. The Strategic Positioning Paper presents the following key reasons to justify the Planning Proposal:

a) Covid-19 has delivered the short stay accommodation industry a significant blow.

b) The Parramatta CBD has a large supply pipeline of hotels and serviced apartments.

c) The short stay accommodation sector is expected to experience a slow recovery from Covid-19 due to the increasing future supply.

d) The subject site has a relatively weak competitive positioning for serviced apartments.

e) The conversion will lead to a minimal loss of jobs and economic contribution to the local economy.

f) The conversion will generate an additional $2.2 million in retail spending annually that will support existing and new businesses.

g) The serviced apartments cannot be converted into another employment generating use due to building constraints.

25. Council officers have assessed the Planning Proposal and recommend it not be supported, as it is inconsistent with the Parramatta CBD Planning Proposal, and was subject to prior concessions from Council in granting a broadening of the defined non-residential land uses under Clause 7.12(2). Council officers have considered each of the reasons provided in the Strategic Positioning Paper (Attachment 2) and conclude the Planning Proposal does not have sufficient strategic planning merit and should not be supported. The assessment is detailed under a range of key issues identified below.

a) Planning Proposal is inconsistent with Council’s endorsed policy position to increase non-residential land uses within the Parramatta CBD.

26. The Planning Proposal seeks to reduce the minimum commercial floor space provision for the site from 1:1 to 0.43:1.

27. Council’s policy position is that a minimum floor space provision of 1:1 for commercial premises be provided for buildings on land zoned B4 Mixed Use surrounding the B3 Commercial Core. This is Council’s long-standing strategic position, first expressed in the Parramatta City Centre Planning Framework Study (2014) and then the Parramatta CBD Planning Strategy adopted by Council on 27 April 2015. The requirement for minimum commercial floorspace became a formal policy position when it was included as a provision in the Parramatta CBD Planning Proposal adopted by Council on 15 June 2021.

28. The Parramatta CBD Planning Proposal recognises the importance of the B4 Mixed Use zoned land on the periphery of the B3 Commercial Core zone of the CBD to facilitate a range of commercial uses that will contribute to its long term economic and jobs growth as Sydney’s future Metropolitan Centre (Parramatta CBD Planning Proposal). This applies to the site at 180 George Street.

29. Specifically, encouraging more employment generating development in the B4 Mixed use zone has been of prime importance throughout the development of the Parramatta CBD Planning Proposal. Various incentives are included to enable additional commercial floor space to be provided in future development – for example, through the minimum 1:1 provision requirement as well as incentives for additional commercial floor space to be excluded from FSR requirements, where provided in development.

30. In this respect, the Planning Proposal is inconsistent with the endorsed policy position of the Parramatta CBD Planning Proposal and risks undermining the effectiveness of the policy direction even before the CBD Planning Proposal is finalised.

b) Commercial floorspace on the site is already at the minimum required amount. Further erosion of commercial floorspace is not supported nor necessary.

31. As noted earlier in the report, Council’s decision in relation to the Planning Proposal finalised in 2017 to include serviced apartments as a land use capable of satisfying the minimum commercial floorspace provision was made on the understanding they would be retained as an existing use on the site. Further to the reasoning of that decision, was that the existing serviced apartments would contribute to almost double the commercial floorspace required under Council policy (1.88:1 FSR). Council Officers consider that including tourist and visitor accommodation within the definition of acceptable commercial uses on this site under Clause 7.12(2) is already a concession.

32. The progressive conversion of serviced apartments to residential either by modification to the original development consent or by subsequent consents has now been eroded to the absolute minimum. Any further variation to the commercial floorspace requirements of the site is not supported nor considered necessary as addressed in Council officer’s responses to the proponent’s reasons below.

c) Serviced apartment portfolio performed better in Parramatta compared to state and national levels.

33. The Strategic Positioning Paper asserts that the short stay accommodation sector has been significantly impacted by Covid-19, citing a dramatic drop in occupancy rates across Meriton’s serviced apartment portfolio. The paper cites statistics demonstrating that occupancy rates in the Meriton Serviced Apartment portfolio were very healthy pre-Covid – 91% in Parramatta – compared to 88% in NSW and 87% nationally. Within the period impacted by Covid-19, the occupancy rate in Parramatta dropped by 33% (down to 58% for the first lockdown) and a 53% drop for the second lockdown (down to a recorded 38% occupancy rate), while occupancy rates in NSW and nationally dropped by 45% and 43% respectively in the first lockdown.

34. The Strategic Positioning Paper does not provide comparable information for the impacts of the second lockdown on its portfolio over the balance of NSW or nationally so the comparable impact of the second lockdown cannot be ascertained. The statistics provided indicate however that, during the first lockdown at least, the serviced apartment portfolio was still quite resilient compared to NSW overall and nationally during the peak of the pandemic. It is possible that in the post-pandemic phase, the impact to short stay accommodation may resolve itself progressively as restrictions to movement are relaxed and community vaccination rates increase. Additionally, it is expected that serviced apartments will continue to support aspects of Parramatta’s long term economic activity and growth. The function of serviced apartments in this context are discussed in the report further below.

d) Reducing the 1:1 commercial floorspace requirement for the subject site may set a precedent for further removal of employment generating land uses in the Parramatta CBD.

35. The Strategic Positioning Paper states that with the proposed pipeline of short term accommodation facilities within the Parramatta CBD, it is expected that supply in this sector will increase by 250% by 2027. In this context, the proponent asserts that the proposed conversion of the remaining 60 serviced apartments into residential will only result in a 3% decrease in total supply by 2027, thereby minimally impacting supply.

36. The removal of employment generating land uses in response to the short to medium term effects of Covid-19 risks may impact the long-term economic growth of the Parramatta CBD. Further consideration of the Planning Proposal may set a future precedent for other sites similarly affected to request variations to the minimum commercial floorspace requirement. Should this matter be considered across multiple sites in the CBD, this may not only affect the Parramatta CBD’s critical success in transforming into one of metropolitan significance, but hamper its economic recovery in response to Covid-19.

37. The Strategic Positioning Paper also asserts that there is expected to be an oversupply of short-term accommodation units in 2030, taking into account existing short term accommodation developments in the pipeline. Council officers are aware of only two recent hotel developments in the CBD – one that has recently been approved at 55 Aird Street and another at 197 Church Street that remains under assessment. There are no other serviced apartments in the pipeline. It is therefore difficult to ascertain whether an oversupply in future is likely as the proponent purports.

e) No certainty that short stay accommodation is not viable in the medium to long term and does not warrant a permanent reduction of commercial floorspace requirements beyond current policy.

38. The Strategic Positioning Paper asserts that the short stay accommodation sector is expected to experience a slow recovery from Covid-19, forecasting that short stay occupancy rates will stay below sustainable levels until at least 2030 and will take even longer to return to pre-Covid levels. It is considered that any impact to the demand for short stay accommodation in the medium to long term will only be realised with greater certainty as the state gradually moves into the post pandemic phase.

39. Nevertheless, should there be any substantial impact to the sector in the medium to long term, this will likely influence future supply of short stay accommodation in Parramatta. As the Strategic Positioning Paper itself asserts, visitation and room demand are expected to recover in 2022 onwards as international borders reopen and domestic travel picks up. In these circumstances, it is expected the demand for the sector in the short to medium term would be taken up by existing short stay accommodation supply, which includes the subject site.

f) The site can demonstrate competitive positioning for serviced apartments.

40. The Strategic Positioning Paper suggests the location of the development at 180 George Street is a weak location for short-stay accommodation in the future and that many existing and proposed high quality short term accommodation facilities are better placed in the Parramatta CBD to attract future visitors.

41. Council Officers anticipate that as work places may become more flexible with staff working remotely; combined with a shift in some cases for office staff to move to regional areas, the need for some short-stay accommodation in the north-eastern part of the Parramatta CBD will be necessary to provide potential convenient short-stay locations to workers in the offices nearby when they are attending the office for meetings, workshops or conferences.

42. Furthermore, the serviced apartments at 180 George Street are the only short-stay accommodation in the north-eastern part of the CBD and adjoining the Parramatta Quay. The Strategic Positioning Paper raises two upcoming hotel developments – one on Smith Street between George Street and Phillip Street; and the second at 110 George Street Parramatta (The Octagon Site) which are yet to be fully completed; and may, for similar reasons argued by the proponent, be postponed or cancelled, thereby reinforcing the competitive positioning of the development as the only existing and well established stock in the north-eastern part of the CBD.

g) The removal of employment generating land uses risks the long-term economic growth of the City, including Parramatta’s emergent visitor economy.

43. Should the conversion be approved, the Strategic Positioning Paper that employment generation rates of 133 jobs will be retained on the site, accounting for a loss of 5 ongoing jobs expected from serviced apartments equating to a job loss of no more than 4%. This argument is based on the job creation expected from other commercial land uses proposed on the site (retail, childcare centre etc.). The Strategic Positioning Paper also states that 400-500 jobs will continue to be generated as a result of ongoing construction at the site more broadly.

44. Council Officers have considered the role of the short stay accommodation sector in supporting other areas of the local economy. In particular, the sector will be key in supporting Parramatta’s emergent visitor economy as educational and medical tourism are a key part of the Western Sydney Visitor Economy and the City of Parramatta Destination Management Plan (2019 – 2024).

45. Noting that major university campuses and innovations spaces in the City of Parramatta are in the pipeline, an increase in visiting academics in the long term is likely. Aside from typical occupants such as tourists and business travellers noted in the Strategic Positioning Paper, visiting academics also fit the market for short stay accommodation.

46. Notwithstanding the above, it is expected that as the commercial office market bounces back during the post pandemic recovery phase, there could still be a greater demand for short-stay accommodation in the Parramatta CBD from corporate travellers. In this context also, serviced apartments may emerge as a more attractive accommodation option, as they provide flexibility for self-isolation, remote working conditions, and professional cleaning services etc.

47. Considering the above, there is a risk that any deliberate and gradual removal of employment generating land uses at this time will negatively impact the long-term growth of emerging and returning economy sectors of the Parramatta CBD and potentially compromise its future role of economic significance as the ‘second CBD’ of the Sydney metropolitan.

h) The conversion from serviced apartments to residential may not result in increased retail spending.

48. The Strategic Positioning Paper asserts the conversion of 60 serviced apartments to residential units will bring in an additional $2.2 million of annual retail spending to the benefit of the local economy.

49. There is no further explanation or breakdown provided on the predicted annual spending amount, however it is considered this assumption holds true if only all or the majority of these prospective residential units are owner-occupied (as rental units are subject to higher vacancy rates). Statistics reveal that in Parramatta, 50% of homes were owned by investors in 2016 (Profile of the Australian residential property investor, CoreLogic 2016), and in 2018 at least, the rental vacancy rate for Parramatta was 4.4%, higher than the acceptable 3% balance between rental supply and demand (Parramatta Local Housing Strategy, pp. 146).

50. Importantly, ensuring that housing delivery complements and does not compromise the economic significance of the Central City is a key argument of Council’s Local Housing Strategy, which reinforces the need to maximise the delivery of commercial floorspace in the Parramatta CBD and surrounds (Parramatta Local Housing Strategy 2020). The Planning Proposal contravenes this direction by seeking to increase residential uses on the site at the expense of existing commercial floorspace below the minimum amount.

i) The proposed residential units do not demonstrate compliance with the Apartment Design Guide (ADG) and should retain their existing employment generating use.

51. It is noted proposed residential units comprise of serviced apartments on Levels 3 to 12 and that most of these floors have been built due to development of the site being underway for close to a year. Specifically, the Strategic Positioning Paper asserts that it is not possible to convert these floors into alternative employment generating uses such as office spaces, as the existing ceiling heights and structural columns do not align with the design principles for commercial office buildings. It is asserted therefore that residential apartments are the only viable conversion of use.

52. Indicative Concept Plans (Attachment 3) have been provided to support the intent of the Planning Proposal to convert the 60 serviced apartments to residential. Council Officer’s reviewed the plans for the proposed residential units and have identified several inconsistencies with the ADG.

53. Apartments 502, 503, 602, 603, S.0702, S.0703, 802, 803, 902, 903, 1002, 1003, 1102, 1103, 1202 and 1203 have been configured as one bedroom apartments but are labelled as studios, as the internal areas of these apartments range between 41-44sqm this is well below the ADG requirement of 50sqm for a one bedroom apartment. Apartment 401 is identified as a one bedroom unit but has an internal floor area of 48sqm (below the 50sqm minimum).

54. It has further not been demonstrated that the proposed additional residential apartments will comply with the cross ventilation and solar access requirements of the ADG. Given the inconsistencies noted above, it is considered the proposed residential units should retain their function as serviced apartments.

PLAN MAKING DELEGATIONS

55. The recommendation to the Local Planning Panel is for the Planning Proposal (Attachment 1) to not be supported for the purposes of seeking a Gateway Determination. As a result, Council is not seeking plan making delegations.

FINANCIAL IMPLICATIONS FOR COUNCIL

56. There are no financial implications for Council in the consideration of this matter.

CONCLUSION

57. Council Officers have assessed the Planning Proposal, including consideration of the key issues identified earlier in this report, and have determined that it should not be supported as it is inconsistent with Council’s endorsed policy position to increase non-residential land uses within the Parramatta CBD.

NEXT STEPS

58. It is recommended the Local Planning Panel support the Council Officer recommendation that the Planning Proposal (Attachment 1) not be supported for the purposes of seeking a Gateway Determination.

59. Following Local Planning Panel’s consideration of the recommendations of this report, the matter will be reported to an upcoming Council meeting along with the Panel’s advice.

60. Should Council decide to not support the Planning Proposal, the proponent may choose to lodge a rezoning review with the DPE on the basis that Council has notified them in writing that it does not support the proposal or because the Planning Proposal has exceeded its 90 day assessment timeframe (9 March 2022).

61. If a rezoning review is lodged, the DPE will notify Council and will request information as part of the rezoning review process.

Kashfia Hasan

Senior Project Officer Land Use

Bianca Lewis

Team Leader Land Use Planning

David Birds

Group Manager, Major Projects and Precincts

Jennifer Concato

Executive Director City Planning and Design

Attachments: