The story:

Plans for a new 22-storey development near Crows Nest Metro station have been halted by North Sydney Council, calling for a reduction in the building's height.

The Council has objected to the scale of the project and its long-term viability as an affordable housing option for the community.

Deicorp, the development and construction company behind the $141 million project, submitted a revised proposal in September for housing to be built in Crows Nest. The proposal outlines plans to construct a 22-storey mixed-use development, including 48 affordable housing apartments. The project also includes a three-storey podium with a mezzanine for retail and commercial use. 

North Sydney Council’s submission rejecting the project acknowledged the “acute need for the provision of affordable housing to accommodate essential key workers”, and declared that any affordable housing being contemplated needs to be provided in perpetuity. 

The local view:

According to Acting Director for North Sydney Council Mark Richardson, the proposed development exceeds the Council's maximum limit for residential spaces by 57, with a total of 190 spaces instead of the allowed 133.

For commercial spaces, only 20 parking spaces are permitted, but the proposal exceeds this by 114 spaces.

“This disproportionately amplifies the extent of bonus residential floorspace being sought,” Richardson wrote. 

The council argues that the development exceeds the height limits established by the government's transport-oriented development plan, which seeks to increase density near transport hubs. A spokesperson confirmed to the North Shore Lorikeet that the Independent Planning Commission (IPC) is now the consent authority for the development moving forward.

North Sydney Majoy Zoë Baker told the Sydney Morning Herald the planned construction would raise building heights “above and beyond” the levels allowed.

The facts:

Deicorp revised its plans for a 16-storey building to take advantage of NSW government incentives offering up to a 30% bonus in height and floor space for including affordable housing. Introduced in December 2023, the scheme requires at least 10-15% of the building to be affordable homes, priced 20-25% below market rate for 15 years.

In August 2024, the NSW Government temporarily expanded this pathway for in-fill affordable housing projects under the State Environmental Planning Policy.

This change means that projects in the Sydney region must include at least 40 new dwellings, while developments outside Sydney must have a minimum of 20 new dwellings.

Last month, the State Government announced that the rezoning of Crows Nest would begin, with the area around the new Sydney Metro Crows Nest Station identified as one of eight transport hubs for accelerated rezoning under the Transport Oriented Development Program.

The Crows Nest TOD precinct is set to deliver:

• Approximately 5,900 new homes

• Capacity for about 2,500 new jobs

• A minimum of 3% affordable housing in all new residential developments, with key sites offering between 5% and 18%

The $141 million proposal forms part of the broader TOD project.

A public meeting on the Crows Nest Mixed-Use Development scheduled for Thursday 12 December was cancelled due to a low number of speaker registrations. 

The Commission has stated that they will be in contact with individuals who have expressed interest in the public meeting to make alternative arrangements to allow them to have their say on the proposed development.