“Flies in the face”: Council rejects Town Hall tower plan

The City of Melbourne has urged Planning Minister Sonya Kilkenny to reject a major expansion of Lendlease’s Town Hall Station development, warning the proposal would overwhelm one of Melbourne’s most significant civic gateways and cast new shadows over Federation Square and Flinders Street Station.

At its July 7 Future Melbourne Committee meeting, councillors unanimously endorsed a position opposing proposed Planning Scheme Amendment C498Melb, which would allow a much larger commercial development above the Town Hall Station entries at the corner of Swanston and Flinders streets.

The final decision rests with the Minister for Planning, not the council.

The site already has approval for an over-station office development of around 46 metres. But the new proposal, lodged by Urbis on behalf of Lendlease, seeks approval for four connected commercial buildings rising to a maximum height of 76.6 metres, well above the area’s mandatory 40-metre height control.

The revised scheme would deliver almost 25,000 square metres of office floor space above the recently opened Town Hall Station, with Lendlease arguing the project is needed to respond to changing market conditions, rising construction costs and the need to secure a major anchor tenant.

Speaking on behalf of Lendlease at the meeting, Urbis representative Clare Gillies said the site was one of Melbourne’s few truly transit-oriented development opportunities and should “do justice” to the state’s $15 billion Metro Tunnel investment by delivering jobs directly above the new station.

She said the original 2017 approval no longer provided the scale needed to deliver the project in the short term, and argued the proposal had been designed carefully by Hassell, with a stepped form intended to reduce its perceived bulk.

But council officers and residents were unconvinced.

The council report found the amendment should not be supported due to “fundamental issues”, including excessive height, a lack of compelling strategic justification, unacceptable overshadowing and reliance on site-specific controls to bypass mandatory planning requirements.

Deputy Lord Mayor Roshena Campbell said the proposal was inappropriate for one of Melbourne’s most recognisable corners.

“This proposal flies in the face of planning controls that have stood for more than a century – protecting Melbourne’s identity, amenity and liveability,” Cr Campbell said.

Council officers said the proposed height increase would affect key civic views, heritage settings and the Swanston Street public realm, while creating additional shadow over Federation Square and the Flinders Street Station steps.

“We’ve received no strategic justification for the proposed height increases, which would cause significant overshadowing of Federation Square and Flinders Street Station,” Cr Campbell said.

“This council is undeniably pro-development, however there must be a balance in new builds between ensuring commercial viability and being an appropriate development for the location.”

EastEnders president Dr Stan Capp also urged councillors to oppose the amendment, saying residents were despairing at proposals that conflicted with what they believed were “sacrosanct policies”.

He said the heritage significance of Flinders Street Station, St Paul’s Cathedral, Federation Square and Young & Jackson required “a major intervention” by the City of Melbourne.

Dr Capp was particularly critical of the fast-tracked ministerial process, noting council officers had been forced to undertake only a high-level assessment because the Minister was expected to make a decision imminently.

“Surely the decision on a development of an estimated $263 million deserves far greater opportunity to analyse, review and consult,” he said.

Nearby residents have also raised alarm about the impact of further construction after years of Metro Tunnel disruption. 

Clement’s House resident Jamie Wdziekonski said some apartments would lose morning sunlight, while the block could face construction activity through to 2031.

He also questioned the need for such a large office project at a time when CBD office vacancy remains a major issue.

If the Minister is minded to approve the amendment, councillors have asked that the proposal be substantially reduced, with towers three and four capped at no more than 60 metres, no additional overshadowing of the Flinders Street Station steps, no overshadowing of Federation Square and an updated facade strategy.

Cr Rafael Camillo, president of Residents 3000, left the meeting early and was absent from the vote.

Cr Campbell said the council’s message to Spring Street was clear.

“This proposal would deliver unacceptable outcomes for our community and we strongly urge the Minister not to approve this development as it currently stands.”