State government takes control of $150m Sydney Town Hall Square project

Topic:Urban Development and PlanningPosted Fri 9 Oct 2026 at 10:11amFri 9 Oct 2026 at 10:11am, updated Fri 9 Oct 2026 at 10:14amFri 9 Oct 2026 at 10:14amDesigns for the proposed public square were unveiled in August. (Supplied: City of Sydney)In short:Plans for a $150 million plaza in front to Sydney Town Hall has been deemed a State Significant Development.The City of Sydney council project will now be subject to another development approval process.The Independent Planning Commission found it could deliver "significant" public and economic benefits.The NSW government has moved to take control of the City of Sydney's $150 million Town Hall Square project.Planning Minister Paul Scully last month forced a pause on work to create a 4,500-square-metre civic plaza outside the CBD's Town Hall, while the Independent Planning Commission (IPC) provided advice on the proposal.Plans for the square were put on display for community feedback in August after council unanimously resolved in February to move ahead with the design and construction of the square.The council has said the plaza, which will require the demolition of several buildings the city has obtained since the 1980s, was necessary to create a gathering point for community events, music events and markets.Mr Scully said he accepted an IPC recommendation the proposal be declared a State Significant Development (SSD), a development approval process reserved for large or sensitive projects, paving the way for a council development application."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 before its determination by the IPC," he said in a statement.The City of Sydney has allocated $150 million to the project. (Supplied: City of Sydney)The IPC assessment only considered whether the project should be declared a SSD and did not grant development approval.In advice to the minister, IPC member Richard Pearson said the square could deliver "significant" public and economic benefits and given state-owned public transport infrastructure, its significance extended beyond the council area.The City of Sydney council has been contacted for comment.The council has previously said while the project would be delivered in coordination with the state government and a SSD designation could lead to "unnecessary costs or delays".