HUNTER Community Forum (HCF) has dropped its legal fight against the 155-unit Sovereign Park development on the old NBN site, after its request for an injunction to stop building works was dismissed in court.
NSW Land and Environment Court Justice Sandra Duggan found HCF failed to demonstrate it had a serious question to be tried and that the balance of convenience warranted refusing the notice of motion.
The decision to drop the case came after Stronach Property agreed not to seek legal costs against HCF, co-convener Therese Doyle said.
"HCF have always been the underdog in this argument," she said.
"Current planning law allows the developer to question any decision in the land and environment court on its merits.
"The same law only allows a community group like us to try and prove a legal error in the process."
The appeal was withdrawn two days before the matter was set to be heard.
Developer Keith Stronach said he was glad common sense had prevailed, and said he was looking forward to getting on with the demolition of the NBN studios in March this year.
"The site is surrounded by some of Newcastle's most iconic landmarks including Darby Street, King Edward Park, the Bogey Hole, Memorial Walk and the much-loved Obelisk," he said.
"We can now start the revitalisation of the site and breathe fresh life into one of Newcastle's most sought-after suburbs."
Stronach will celebrate 100 years in the business this year and Mr Stronach said he was proud to be delivering Sovereign Park, approved with the support of City of Newcastle and designed by international architects Marchese Partners.
Early site works have continued since the development was approved by the Hunter and Central Coast Joint Regional Planning Panel (the panel), including demolition and mine grouting.
The court heard that stopping grouting works for two weeks would cost the contractor about $25,300 per day and put 11 workers at risk of being stood down.
HCF had lodged an appeal against the panel, arguing its decision to approve the development failed to consider the impacts of a mine subsidence event on surrounding buildings, roads, public spaces and pavements after the site is grouted.
Ms Doyle said the group was faced with the possibility that new evidence could be presented to the court that had "previously been unavailable to the public".
As a result, she said HCF decided it would be too difficult and costly to prove the panel hadn't seriously considered the impacts of a subsidence event on nearby homes.
Ms Doyle claimed an engineering report HCF commissioned identified 28 of the 67 buildings in close proximity to the development site "may suffer unacceptable damage" if differential subsidence occurred as a result of mine grouting.
"We will be applying to brief the Newcastle council with this report via a public voice in the near future," she said.
The Stronach Property development on Mosbri Crescent was approved with conditions in July, drawing more than 500 submissions.
The initial proposal was for 161 apartments across three buildings and 11 townhouses.
The panel decided a level would have to be removed from the tallest building - reducing the apartments to 155.
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