The NSW Minister for Planning and Public Spaces has issued a direction to City of Sydney Council to halt determination of any development applications for its controversial $150 million Town Hall Square plan.
Minister, Paul Scully directed the Council to prevent determination of any DAs for the proposal under Section 9.1 of the Environmental Planning & Assessment Act 1979 until he receives and makes public advice on its State Significance from the Independent Planning Commission (IPC).
“The proposal, as it stands, would have significant impact on the commercial heart of Sydney’s CBD, requiring the demolition of seven buildings and an expenditure of at least $150 million in ratepayer funds,” said Mr Scully.
“Consequently, it is appropriate that I exercise my powers as Minister under the Act to request timely advice from an independent body on the state and/or regional significance of the proposal.”
Once received, the IPC’s advice will be made publicly available alongside the Minister’s decision as to whether the proposal should be declared a State Significant Development.
City of Sydney Lord Mayor, Clover Moore (pictured, below) said the Council is “shocked and disappointed” by the Government’s “extraordinary and highly unusual” decision to intervene in the project’s planning.
“But we are not concerned about additional assessment – we are confident in the project, its planning merits and the rigorous work that has gone into it,” she said in a statement on social media.
“For four decades, under Councils of different political leadership, the City has painstakingly acquired the properties needed to realise the vision for a major public square at Town Hall. That vision has been endorsed through two of the largest community consultations the City has ever undertaken, and the plans have attracted overwhelmingly positive feedback.”
The Lord Mayor said the Council had already committed to having the project assessed by an independent planner and determined by the Central Sydney Planning Committee, which has a majority of members appointed by the NSW Government.
“In 2025, we briefed the Planning Minister on the project in detail and no concerns were raised. The NSW Government also approved the City’s acquisition of the final property needed to deliver the square. Against that history, the timing and nature of today’s intervention inevitably raises questions, particularly as political attention begins to turn towards the next State Election.”
“Already hundreds of thousands of people commute through this busy hub each day, on train, bus, light rail and the new metro. And as our city continues to grow, we need more space for people.”
She said that if the Government ultimately uses its powers to stop the project rather than simply scrutinise it, it would be “a deeply concerning and regressive intervention in the delivery of important public infrastructure”.
“But we will persist. We remain enormously excited about the opportunity to transform one of the busiest and most cluttered parts of our city into a beautiful and generous public space, shaded by an arch of native trees – somewhere to move through, meet friends, linger, or gather for major civic events.”
Last month, the Council released new renders of a proposed plaza to be built opposite Sydney Town Hall, which still requires the demolition of seven more buildings.
Councils have been acquiring the land needed to build the 4,500 sq metre plaza since 1982. Demolition had been expected to start in 2028, with a completion date in 2031.
