Plans for Sydney’s controversial new public square in doubt after NSW government intervention

State planning minister declares project ‘state significant’, wresting approval process away from local council

Plans for a grand new public square in the centre of Sydney are in doubt after the New South Wales planning minister declared the project “state significant”, wresting the approval process away from the City of Sydney.

The lord mayor, Clover Moore, released renders in August for the plaza opposite Sydney’s town hall. The design for the space, which the council had expected to be completed by 2031, include a semi-circular clearing projecting eastwards towards Hyde park, with a fountain and a grove of native trees.

The plans have been the source of a battle between Moore and the NSW premier, Chris Minns, who has said he does not support the project, describing it as “too expensive, majorly disruptive for Sydney”, and said it would close down businesses in the area.

It had also become a flashpoint in a culture war, ridiculed in the Sydney tabloid The Daily Telegraph, which published AI-generated images of the new square heaving with protesters . The council led by Moore, who’s been the city’s progressive independent mayor since 2004, has previously received negative coverage from the publication for other proposals, i ncluding an Oxford Street cycleway first formally raised by the council in 2020.

The council has now acquired the last of seven buildings needed to be bulldozed for the square. The demolition and construction was expected to cost $150m.

But on Friday, the planning minister, Paul Scully announced he had declared the project a state significant development (SSD), after seeking advice from the NSW Independent Planning Commission, taking the decision for approval away from the council.

“This process will allow for a rigorous whole-of-government assessment by the department and provide an opportunity for individuals, the community, and other stakeholders to have their say on any development application,” he said.

They have also been opposed by Woolworths, whose town hall location occupies one of the buildings that would be demolished under the plans. At a press conference outside the store on Friday, the Australian Retail Council’s chief executive, Chris Rodwell, welcomed Scully’s decision.

“Look at this building. This is not a building that needs to be bulldozed … it’s home to Australia’s single busiest supermarket.”

Scully said the IPC would make the determination on any proposal submitted by the City of Sydney. Under the SSD pathway, the planning minister himself is the consent authority, unless the IPC is delegated to take on that role.

In a surprise statement on Friday, Moore, also welcomed the decision to declare the project state significant, saying, “I could not agree more”.

“Regardless of who assesses it, we remain confident in the merits of the proposal and see no planning reason why it should not ultimately be supported.”

“The city owns the buildings, has responsibly saved the money over a 40 year period to deliver the project debt-free, and has had some of the world’s leading designers and architects work on the plans.”