Plans to redevelop the Premier Hotel as a nine-storey residential tower have been withdrawn after a court appeal against the proposal's refusal was discontinued.
Sydney-based Thomas Hotels group has discontinued proceedings in the NSW Land and Environment Court over plans to demolish the Premier and replace it with a 30-metre building containing 48 apartments, a new-look ground-floor pub, 16 hotel rooms, two levels of underground parking and a roof-top rotunda.
The application was knocked back by the Hunter and Central Coast Regional Planning Panel in January 2024 after City of Newcastle raised objection to the proposed height, which would be a 185 per cent variation to the development standard. The $34 million proposal was also 45 per cent above the permitted floor space ratio.
"The proposed development does not respond to its current context and is out of scale with surrounding development," the planning panel concluded.
The formal rejection came after the panel supported a recommendation from the council in November 2023 that the application be withdrawn.
The applicant elected not to withdraw and lodged an appeal with the NSW Land and Environment Court against the deemed refusal of the application.
A conciliation conference was scheduled for June 11, 2024 but the applicant decided to discontinue the proceedings.
The court proceedings were discontinued on May 27.
The Premier is on a prominent corner at the Nineways intersection at Broadmeadow.
The intersection is within the boundary of the Broadmeadow Place Strategy, which was placed on exhibition this week.
In its refusal of the development application, the Hunter and Central Coast planning panel said the proposal was "premature" given the site's inclusion in the strategy boundaries.
The strategy outlines plans to guide redevelopment of 313 hectares of land with 20,000 more homes for 40,000 people.
A new town centre is planned from Broadmeadow Station to the Nineways intersection with office, retail and medium density housing.
Nineways has also been earmarked for road and intersection upgrades.