_The Central Sydney Planning Strategy targets finalisation in early 2021

The Central Sydney Planning Strategy (CSPS) and accompanying CBD planning controls are on the run home, being reported back to City of Sydney Council prior to the end of this year.

December 03, 2020

The Central Sydney Planning Strategy (CSPS) and accompanying CBD planning controls are on the run home, being reported back to City of Sydney Council prior to the end of this year after a lengthy period of public exhibition throughout 2020. The Strategy (CSPS) provides for the most significant change across the CBD for almost 50 years.

The package includes revisions to the LEP, DCP, Competitive Design Policy and Contributions Plan, with targeted finalisation by March 2021.

While the fundamentals of the strategy and draft controls remain as exhibited, a number of significant adjustments and clarifications have been included. A key documents is also set to be reinstated to guide Site Specific Planning Proposals, including outside of cluster areas.

Note: We previously reviewed on the Strategy and draft controls prior to exhibition in February 2020. For the details of the package, click through to our Knight Frank blog.

Summary

What’s New?

Guideline for Site Specific Planning Proposals to be reinstated – seeking to provide a ‘streamlined’ pathway to access additional height and density through site specific planning proposals beyond the current LEP (including beyond bonus 50% in tower clusters). Sites, in or out of a cluster, with an area of 1,000 sqm can be considered
Savings and Transitional provisions confirmed for Concept Applications (Stage 1 DAs) – allowing projects to proceed to detailed design DA (Stage 2) based on their existing/pending Concept approval
Revisions to the Competitive Design Policy relating to jury member composition (40:40:20 gender ratio)

What Stays the Same (as exhibited)?

Tower Clusters and DA pathway to 50% FSR uplift remains – for employment floor space only (no residential/serviced apartments)
Residential floor space incentives removed (no accommodation floor space)
Development Contributions Plan with increased rate from 1% to 3% remains – no offset period for COVID but sliding scale below $1million
LEP and DCP amendments stay generally consistent with exhibited versions

Where to from here - Timing?

The LEP amendments are targeted for gazettal in March 2021 as per the Gateway Determination and prior agreement between the Lord Mayor and Planning Minister in December 2019
The Contributions Plan 2020 (3%) will likely coincide with gazettal of LEP, but could be earlier
The amended DCP Controls (including Design Competition Policy) will coincide with the LEP Gazettal

Our Initial Thoughts

Tower Clusters and Site Specific Planning Proposals

Recent Site Specific Planning Proposals have been endorsed by Council (and NSW Department of Planning) for significant uplifts beyond the 50% tower cluster bonus. Combined with the revival of the Guideline for Site Specific Planning Proposals, it would appear that Council is re-establishing the navigation markers, in an attempt to give land owners confidence to set a course for growth in Sydney CBD.
The Planning Proposal Guideline will keep the door ajar for growth – linking extensive strategic planning by Council with a pathway to delivery. We expect to see key land owners opt out of the 50% tower cluster bonus, and follow the Site Specific Proposal pathway in order to tap into available yield.
Outside of the cluster areas we also expect to see owners pursue vindicated opportunities for increased height/density where they align with the CSPS framework.

Development Contributions

Despite numerous submission on the topic, there is no suggested postponement of the full 3% contributions in the wake of COVID-19. The City’s position is that the current rate of 1% has remained static for 23 years and infrastructure (and its rising cost) is a vital component to the urban fabric as the city grows.
Contrary some other key centres is Sydney a 3% contribution are also set to remain on refurbishments to buildings (such as B grade office) where no additional floor space is added. The City submits that upgrades to buildings assist in unlocking revenue generation potential and generally enables the proponent to secure a financial outcome by avoiding vacancy or securing higher rent or stronger lease arrangements. We understand this position is not widely held by many parts of the industry. This view is arguably CBD-centric, and doesn’t acknowledge alternative investment options available for land owners outside of the CBD. We would advocate for incentives to keep investment within Sydney CBD and flow on economic impacts to realise the aims of the CSPS.
Whilst not part of the current package, the retention of the Heritage Floor Space Scheme (HFS) and imminent affordable housing contributions have also been reiterated by Council.

A link to the full Council package can be found below:

Find out more

These changes are no doubt pivotal for the evolution of the CBD. If you have any other questions, or would like to discuss in more detail, please get in touch with our Town Planning Team.

For futher information please contact:

Stephen Gouge
Planning Manager
+61 410 291 014
Stephen.Gouge@au.knightfrank.com