Blue Mountains City Council fights state government over 'loophole' allowing denser development

Council is proposing an amendment to the LEP (Local Environment Plan) 2015, a legal planning document that controls development in the Blue Mountains.

One of the goals is to close a "loophole" that is allowing overly dense land developments.

Mayor Mark Greenhill told the council meeting on February 28 the change "is no panacea, but it's an improvement".

"If you were to drive down Old Bathurst Road in Blaxland, you would see essentially [a number of] units in a two-storey block, covering a normal residential site that dwarfs every house around it, [and] is completely out of character with other homes in the area," he said.

"In my opinion, I think it's unlikely our staff would've approved that development under our LEP."

Cr Greenhill told the Gazette that developments of this kind are not helping with social housing, as there is no mandate - the houses go on the open market and are often purchased by people from Sydney.

"There's a huge capacity for further aged and social housing developments in the Mountains without trouncing our LEP. Approximately 50 per cent of the land is still available for more medium density housing, developers just need to take it up," he said.

While the LEP sets a minimum lot size for detached dual-occupancies (1100m²), council's business paper said a loophole in the relevant state code allows developers to use lots as small as 720m² - essentially bypassing the LEP.

"What this [amendment] does... is it doesn't allow you to cram one of these little blocks onto a smaller block, as is currently the case. You would have to have a bigger block," said Cr Greenhill.

Similar issues are also addressed, including multi-dwelling housing and manor houses, which currently have no minimum lot size controls in the LEP.

"If the lot size changes in the way we describe, the type of development you see in East Blaxland is unlikely to occur," said Cr Greenhill.

"This is our way of essentially restricting the operation of the code in the Blue Mountains context, somewhat. But it's no cure. And if there is a change of government, we will continue to advocate for an exemption from the code."

This amendment is an updated revision with requests for stormwater management controls removed - as these were refused by the Department of Planning and Environment.

"We've just lived through two natural disasters, I can't tell you the amount of houses that I have visited where stormwater has been an issue," said Cr Hollywood.

"I am actually shocked and appalled that now that we've pointed out the problem, that they actually don't think it's an issue."

Trish Doyle told the Gazette she wholeheartedly supports council's proposal, and said the Blue Mountains should be exempt from the standardised code.

She also said Labour is proud of its record in improving Sydney's drinking water quality, and that she thinks continuing that record will require stormwater management to comply with the LEP.

"In 2017, I moved the amendments to retain protections of our drinking water catchments. Unfortunately these amendments were not supported by the Government and the Neutral or Beneficial test (NorBe) for developments was weakened," she said.

Council said it will continue to advocate for solutions to stormwater issues, and exemption from state planning rules, separately.