0°C | Tuesday October 21, 2025 
17 September 2025
North Sydney Council staff have recommended against advancing a planning proposal to redevelop a key Neutral Bay site into four towers of up to 12 storeys, citing inconsistencies with the council’s own planning framework and concerns over public benefit outcomes.
The proposal by Arkadia Property Services covers two land parcels at 166-188 and 198-214 Military Road, divided by land accommodating the Neutral Bay Community Centre and two heritage-listed buildings. It sought to amend the North Sydney Local Environmental Plan 2013 to lift height controls from 16 metres to between 36 and 45 metres and increase the minimum non-residential floor space ratio from 0.5:1 to 1.2:1.
Arkadia’s indicative concept scheme featured four mixed-use towers containing 144 apartments and about 5400 square metres of non-residential space, along with an offer to provide a 730 square metre community centre on a 40-year peppercorn lease, two through-site links, Military Road footpath widening and other public domain works through a Voluntary Planning Agreement.
Independent consultant Ingham Planning, engaged by council, found the proposal lacked strategic and site-specific merit. It identified excessive scale and intensity compared with the six-storey limit in the Neutral Bay Village Planning Study adopted by council last year, overshadowing and poor visual outcomes, and insufficient community benefits compared to those set out in the study. The consultant also highlighted unresolved site isolation issues affecting the adjacent Blue & White Dry Cleaners site at 180-182 Military Road.
The North Sydney Local Planning Panel reached a similar conclusion in August, advising the scheme should not proceed to a state Gateway Determination in its current form. While the panel accepted that 8–12 storey development could be contemplated under recent state planning changes, it said Arkadia’s offer fell short of requirements for community facilities, public domain upgrades and building separations. One panellist dissented, arguing that even 12 storeys was unjustified without stronger certainty on urban design and affordable housing.
Council has since received six community submissions, all raising objections. The NSW Housing Delivery Authority also declined an earlier request to declare the site a State Significant Development, although the developer retains the right to pursue alternate rezoning or review pathways.
The proposal will be considered by councillors at next Monday’s meeting, with the recommendation that it be rejected.