BUSINESS owners in the Hunter Street Mall have said the CBD is "dying a slow and painful death" thanks to inertia on the final two stages of Iris Capital's EastEnd development.
Alicen Lewis, who owns Ground Floor Cafe, Market St Basement and Neighbours on Market Street told Hunter and Central Coast Regional Planning Panel representatives that the current situation is "not commercially viable" at a review hearing for the project on Monday.
"In addition to the constant losses from repairs and theft, our patronage is substantially down at time where discretionary spending is at an all time low," she said.
"It's disappointing, but not surprising that people are not coming and spending in our area.
"There's been no private investment in the East End of the mall for years."
The fate of the $159.6 million third and fourth stage of the project hangs in the balance, with the panel due to hand down its decision in days.
The developer requested a review of the refusal in June, after the panel knocked back the final two stages earlier this year arguing it would have "unacceptable cumulative impacts" on public and private views.
Ms Lewis said they had been willing to persevere through tough economic times with new development on the horizon, knowing the state of the Hunter Street Mall was temporary and "necessary for the greater good" of the city.
"The abandonment of this development will not only be a huge disappointment for my family, but a huge disservice to the Newcastle community," she said.
"A high number of businesses located in the mall will undoubtedly close, including our own."
Panel chair Brian Kirk and former City of Newcastle (CN) councillor and property lawyer Jason Dunn removed themselves from the panel due to potential perceived conflicts of interest, after letters were sent to the Planning Panel Secretariat from members of the public asking them to step down.
The panel was instead chaired by Tony McNamara with Steve O'Connor representing the council.
More than 15 people spoke for and against the proposal at the hearing, which includes adding height and mass to several apartment blocks in return for moving buildings to create a public square between Market Street and King Street.
Iris Capital chief executive Sam Arnaout said he considered the EastEnd development a "true legacy project".
"I don't take that responsibility lightly, and you can only just walk down Hunter Street to appreciate how important heritage is to me," he said.
Mr Arnaout said the development "has to make money" but pointed out the final stages of the project are the result of careful and meticulous design he feels is empathetic to heritage values.
"It was laborious, it was tedious, it was painful to to say the least, but we've got an outcome that we feel, and obviously, ultimately, the UDRP (Urban Design Review Panel) unanimously approved, council unanimously supported, not once, but twice.
"We feel we've got a supportable scheme.
"In my mind, there's never going to be a perfect alignment of interests when you talk development, especially at this scale."
The council last year approved the demolition of buildings on the site, including an old timber house the National Trust classed as an important part of the city's heritage.
The 2023 amended development application proposed a deficit of 113 parking spaces in light of the council's decision to demolish its King Street car park, which Iris had been relying on to provide parking spots to support the new apartments.
The council hired consultant town planners Patch Planning, along with Envisage Consulting, to undertake an independent review assessment which recommended the modified application be approved.
Newcastle Inner City Residents Alliance (NICRA) spokesman Brian Ladd said he felt CN's assessment of Iris Capital's plan failed to address major heritage issues, loss of public views, insufficient carparking and other community concerns.
"The assessment report is at odds with the unambiguous rejection of Iris Capital's stage three and four modified plan by the previous panel," he said.
"NICRA's key concern about the modification include that the Patch Planning assessment report fails to address one of the one of the great criticisms delivered by the panel, and that is that the modifications are not substantially the same as those approved in 2018."
Mr Ladd said he feels Iris seeks to privatise iconic public views, with severe adverse impacts on vistas to and from Christ Church Cathedral, The Hill, the Segenhoe building, Nobbys, Fort Scratchley, the foreshore and Stockton.
"The proposed maximum building height increases and ballooning building envelopes in the amended plans are excessive," he said.
Maralyn Foureur spoke on behalf of Segenhoe building residents and said if the modification is approved, the view of the harbour from the living areas of every apartment "will be lost forever".
"We note that the applicants have conceded that the view loss has increased from minor in their first application to the panel, but to those about to lose this precious amenity, it is actually rated as severe, and for many it will be devastating," she said.
The modification would add three extra floors to a new building in front of the Newcastle Club and five storeys to another apartment tower.
A decision is expected to be published on the planning panel website in seven days.
