Inner-city Newcastle is poised for an influx of social and affordable housing after the NSW government changed course on the massive Honeysuckle HQ waterfront development site.
The new Labor government told the Newcastle Herald that it had identified the publicly owned three-hectare land parcel to help it meet its housing targets.
"With housing a key focus for the government, Hunter and Central Coast Development Corporation is now exploring opportunities to deliver increased social and affordable housing at Honeysuckle HQ," a government spokesperson said in a one-sentence response to questions from the Herald.
The former Coalition government launched a sale process for the "premium" site two years ago with a vision of a mixed-use precinct which would attract attention from some of the nation's leading property players.
The Herald understands a Walker Corporation proposal for a large residential, commercial, hospitality and hotel complex called Honeysuckle Square was HCCDC's preferred tender.
The Coalition last year ruled out imposing a social and affordable housing target for Honeysuckle HQ, but the change of government in March has signalled a new approach.
HCCDC asked shortlisted candidates to submit detailed proposals by early this year and planned to announce the winning proponent before Christmas.
The Herald understands developers who submitted expressions of interest have signed non-disclosure agreements forbidding them from talking about the project.
A Newcastle developer not involved in the process said he believed the project was on hold and criticised the government for changing the ground rules for the development after two years of planning.
"It's not right. This has been a two-year process holding our hopes for the betterment of the city," he said.
"It's been a rigorous process and the proponents have spent a lot of money on it."
The developer said Newcastle had many other sites suitable for affordable housing, including the Hunter Park land at Broadmeadow.
"This is a site which was a key for economic development. Someone should ask Chris Minns to exempt this site from the targets.
"It's like the grouting fund. Newcastle is plagued by bad government.
"Where's the transparency? When do the people of Newcastle get to find out what's happening with the process?"
Honeysuckle HQ is the last parcel of land to be sold as part of the 30-year-old redevelopment of inner-city Newcastle's former industrial waterfront.
The site stretches from Cottage Creek to the Wickham marina and includes a one-hectare land parcel on the southern side of Honeysuckle Drive with a height limit up to 90 metres.
Former Planning Minister Rob Stokes said two years ago when calling for expressions of interest that the site was the "centrepiece of everything we have been working towards in Newcastle" and "the dynamic gateway connecting the region to the new city centre".
Newcastle MP Tim Crakanthorp said last year when in opposition that Honeysuckle HQ was an opportunity for the Coalition government to show it was serious about ending the housing crisis.
"If you take a look at all the CBD high-rises, you'll see very little effort there to include housing that is accessible to people on a lower income," he said at the time.
