Department of Planning

Media Releases
from the Minister

Media Releases
from the Department

Media Releases

Department of Planning

Media Release - Minister's Office

Sydney: 10 May 2009


NEW IKEA TO PROVIDE BOOST TO TEMPE

The NSW Planning Minister, Kristina Keneally, today announced the Planning Assessment Commission’s (PAC) approval of a new IKEA showroom and warehouse on the former Tempe Tip site.

Ms Keneally said the project would generate $120 million in capital investment and accommodate IKEA’s Australian headquarters as well as Australia’s biggest IKEA store.

“Having the Australian headquarters of such a globally-renowned brand located here in Sydney is great news for the city’s economy, jobs market and local community,” Ms Keneally said.

“The development will create 600 ongoing jobs and will involve a showroom and warehouse, car parking for 1,775 vehicles, public domain improvements and landscaping.

“The heritage listed ATECO building and clock tower will be retained for use as IKEA’s headquarters, which will ensure the local character and visual amenity of the area is conserved.

“Another benefit of this project is the retention of the grand Moreton Bay fig tree that will be transplanted and maintained on the site along with 270 additional trees that will be planted during construction.”

Ms Keneally said her decision to send the proposal to the PAC for determination was because it was located in her electorate and the proponent had made a declarable political donation.

“Delegating my approval authority to the PAC has removed any potential or perceived conflict of interest that may exist,” Ms Keneally said.

“It is essential that both the public and proponent feel that the process of assessment has been a fair and transparent one.

“Delegating my role as approval authority to the PAC has delivered that certainty.”

Ms Keneally noted that the PAC had listened to the concerns raised by the community relating to an increase in traffic generated by the development.

“In response to public feedback the PAC has imposed a number of conditions on the approval in order to adequately address community concerns,” Ms Keneally said.

“The proposed right hand turning bay into Union Street was removed to discourage customers using residential streets and the number of lanes available on the Princes Highway will be retained.

“The amended proposal also includes a new pedestrian crossing and shared pedestrian/cycle path along the site’s Princes Highway frontage.

“During the construction stage, a traffic management plan must be implemented to address impacts on local traffic routes, pedestrian circulation around the building site and local on-street parking.”

The proponent has also committed to providing Marrickville Council with an additional $25,000 to prepare a Local Area Traffic Management Study addressing local traffic conditions, along with a $2 million upgrade of Bellevue Street and $1.45 million in traffic management contributions for the immediate locality.

This is the second determination by the PAC after approval was granted for the $72 million Red Cross medical research and development project in Alexandria in February.

The PAC has also reviewed and provided independent advice to the Minister on 7 other projects since 8 September 2008.

IMPORTANT STATEMENT ABOUT POLITICAL DONATIONS

The Minister for Planning has asked the PAC to determine this proposal. More information about political donation laws for development proposals is available at http://www.planning.nsw.gov.au/assessingdev/donations.asp.

For more information about the PAC and its role in regard to major projects, please see the relevant fact sheet at http://www.planning.nsw.gov.au/assessingdev/duapsrole.asp.

Political donations have been made by the proponent (Valad Commercial Management Ltd) and their consultants (EG Property Group).

The disclosure statement notes that the proponent made donations to the Australian Labor Party in 2007. The disclosure statement is available with the proposal documents and can be found at http://majorprojects.planning.nsw.gov.au by searching in the Marrickville Council local government area of the Major Projects Register.

EG Property Group also donated to the Australian Labor Party NSW Branch in 2007. These donations can be found at http://www.efa.nsw.gov.au/state_government_elections/election_funding_reports/state_general_election_2007 under declarations lodged by donors – detailed report.


© NSW Department of Planning