Monday 12 October 2026New South Wales edition
Sydney Times News

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State Government Takes Control of $150 Million Sydney Town Hall Square Project

The NSW government has taken control of the planning process for the City of Sydney's $150 million Town Hall Square project, declaring it a State Significant Development. The move has raised concerns from Lord Mayor Clover Moore, who fears it could slow down the project's delivery and increase its cost.

SR
By Staff Reporter
News reporter · Updated 4 days ago

The NSW government has taken control of the planning process for the City of Sydney's $150 million Town Hall Square project. Planning Minister Paul Scully has declared the proposal a State Significant Development (SSD), which will require a development application to be assessed by the Independent Planning Commission (IPC).

The project involves creating a 4,500-square-metre civic plaza outside the CBD's Town Hall, which will require the demolition of several buildings. The City of Sydney has said the plaza is necessary to create a gathering point for community events, music events, and markets.

Government Intervention

Mr Scully said he accepted an IPC recommendation to declare the proposal a SSD, which will provide for "a rigorous whole-of-government assessment" and public consultation on the project. "We've got hundreds of jobs that are potentially impacted by it, we've got several buildings, we've got some complex interplays with state government assets, particularly transport assets, so I think by any measure, something in the civic heart of Sydney and Sydney CBD would be considered state significant," he said.

Lord Mayor's Concerns

Lord Mayor Clover Moore said in a statement that the project was "undeniably a significant project" and she was confident the proposal would get the green light. However, she expressed concerns that the state government's "unusual intervention" could slow down its delivery and increase the cost. "The timing and nature of this intervention inevitably raises questions, particularly as political attention begins to turn towards the next state election," she said. "It would be deeply disappointing if this intervention prevented meaningful progress until after the election, or if the government ultimately rejects the proposal based on grounds outside the planning process."

The City of Sydney has allocated $150 million to the project, which is estimated to cost $94 million. The council has said the extra funding is to allow for cost overruns.

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