A development backed by media scion James Packer in Sydney’s Kings Cross is pitting the former prime minister Paul Keating against former New South Wales premier Morris Iemma.
Keating, who lives and works in the Kings Cross area, has long had an interest in preserving its heritage character.
The former prime minister has objected to developer Time and Place’s proposal to replace 80 studio and one-bedroom apartments in the 10-storey Chimes building in Macleay Street with a 13-storey building containing mainly luxury apartments.
Keating is particularly incensed that Time and Place is utilising the floorspace bonuses available under the state government’s housing state environmental planning policy (SEPP) to add three extra floors to the 10 storeys permitted.
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These must be affordable housing for 15 years, but the extra floors are predicted to generate about $100m in extra profit per floor over time.
“I only realised I was up against Morris when I read the reports that his lobbying firm is acting for Time and Place,” Keating told the Guardian.
He said he was appalled that the proposal would result in the loss of more affordable homes for less affluent residents of Kings Cross in favour of apartments that would have price tags upwards of $10m.
Iemma’s lobbying firm, Iemma Patterson Premier Advisory (IPPA), has come under scrutiny lately because of the huge increase in clients since the Minns government won power in March 2023 and began overhauling planning laws in order to deliver more housing.
More than 40 developers have signed up with IPPA as they seek to use a new fast-track approval process for housing developments over $60m.
If accepted by the Housing Development Authority, a housing development is removed from council and goes to the state’s planning department, classified as state significant development.
Time and Place is one of Iemma’s clients. The NSW lobbyists’ register shows the Chimes PP Partnership Pty Ltd joined up in March 2024, not long after the City of Sydney took the first steps toward adopting a policy that would have blocked developments that resulted in a 15% reduction in existing housing.
Time and Place’s development was potentially affected.
In April of that year, Iemma held a meeting with the department, meeting disclosures show.
“The City of Sydney’s planning proposal regarding dwelling retention was discussed,” the note says.
Time and Place has now chosen to pursue the development through the state significant track, which has largely sidelined the council.
Keating, meanwhile, is among more than 140 people who lodged objections with the planning department to the concept plan.
“In my view this represents a gross misappropriation of the Housing SEPP, fails the public interest and social impact tests under the Environmental Planning and Assessment Act 1979, and should not be permitted to proceed,” the former prime minister wrote.
“The concept proposal seeks to demolish an existing building containing 80 modestly sized, affordable apartments to construct a 13-storey building indicatively comprising fewer, larger, luxury apartments, with only 15% GFA dedicated to affordable housing and for 15 years only.
“Perversely, the proposal seeks to exploit the available height and floor space ‘affordable housing bonuses’ while drastically reducing the affordability of 85% of the apartments on the site.”
Keating’s concerns about the loss of housing and replacement with luxury apartments were echoed by the independent MP for Sydney, Alex Greenwich.
“The Chimes redevelopment is a real test of the state’s planning system and whether it is about delivering homes for people or giving developers what they want,” he said. “It’s making an opportunist farce out of our planning laws.”
Keating said that as a long-term resident of Potts Point he was very concerned that the art deco heritage of the area was not compromised by inappropriate development. The site is directly across the road from the Macleay Regis, an iconic art deco building which was constructed by one of the founders of Woolworths in 1937.
The former PM said he had attempted to engage with the architects of the proposed building about the design elements of art deco style, including the importance of solids and voids and the use of liver brick. Instead, he said the developers have proposed a building with semi-circular verandas – apparently a nod to deco style – but little else.
In his submission Keating echoed many of the City of Sydney’s objections, which include its height, setbacks, wind impacts and inappropriate fit with the heritage of the area.
Comment has been sought from Time and Place.
