The Hobart City Council has approved a new $74 million mixed-use office building in the heart of the CBD that will be leased by the federal government.
The nine-storey development on Bathurst Street by the Hanging Garden Group includes office space, a ground-level lobby with retail tenancies and 16 basement parking spaces.
It also features retail and hospitality opportunities to activate Bathurst and Watchorn Streets.
The applicants said the project would activate valuable land within the CBD by replacing what is currently empty carparks.
The approval comes with a condition that the developer pay $445,000 “for the provision of significant benefits for civic amenities”.
The “lawfulness” of this payment was questioned by opposed residents from the neighbouring Commons building, who wanted to know if the council would go and spend the funds “on another site unrelated to the development”.
In response, Councillor Ryan Posselt moved to require the almost half-a-million dollar contribution to have included conditions, ensuring the funds be used specifically for additions to Watchorn Street.
Acting Director of City Life Karen Abey said the council viewed the payment as acceptable.
“It’s absolutely not a sort of bribery type payment for that amount to go into the council’s general funds,” she said.
“The intention would be for that to be used by the council to do something either in Watchorn Street or something nearby that would reflect a civic benefit.”
Despite concerns about height, shading and community opposition, the development was unanimously approved, with several councillors noting while it was a “difficult decision”, it ultimately met the planning scheme.
“Either way it goes, if it is approved, if it is refused, there are going to be people in the community that are upset with us,” Councillor Ryan Posselt said.
Councillor Bill Harvey said he would “reluctantly support” the build.
“It is a tough decision to make, especially when you know people who are opponents to this proposal, but I will support it tonight,” he said.
Councillor Ben Lohberger said he was “quite unhappy on behalf of the commons residents”.
“I will be going with the staff recommendations, but I’m torn. I’ll be honest, I’m torn, but ultimately I’m leaning towards approval,” he said.
The building will have a maximum height of 40.5 meters and a total gross floor area of 13,733m2.
