Justin Hemmes’ Mega-Entertainment Precinct CBD Development Faces Opposition From Residents

A proposal backed by Merivale head Justin Hemmes to turn six historic city centre buildings into an expansive entertainment establishment has been met with opposition from holdout residents and businesses.

Lodging a raft of development application documents in November, Merivale seeks to transform the Victorian-era buildings on King, Clarence and York streets into a complex featuring several bars and clubs – including a large basement nightclub – as well as two restaurants, a gym and spa, a courtyard and hotel accommodation.

The buildings are presently used for residential accommodation as well as by businesses, and situate the popular Merivale-owned pub Hotel CBD. The proposal would see the existing housing stock and business space lost.

Hemmes touted a large city centre entertainment precinct as far back as 2018, before foraying into the block fronting King Street in 2022.

Objections to Justin Hemmes’ CBD development from lot owners

Among those who have submitted objections to the City of Sydney which were published in December is resident Jerry Chen, who wrote that Justin Hemmes and Merivale had not obtained his permission or that of some other owners.

Writing on behalf of other owners and residents, Chen wrote that “Merivale does not have full owner consent to submit this proposal and has not acted in good faith in this process to date.”

“There is currently no intention for our lots to be sold to Merivale or to provide the consent required for this proposal to proceed, contrary to any representation by the applicant to suggest otherwise.”

The objection argued that the proposal for an all-hours entertainment precinct “must be rejected” given the adverse impact it would have on the remaining residential units, and that it is “inappropriate for the applicant to operate as such when there are residential lots in the building that it does not and will not own.”

A proposed rooftop bar would hinder residents’ privacy, the proposal argued, saying that the loss of privacy and the noise from the bar would “greatly diminish residential amenity for the current residential lots.”

Residents have housing concerns over Hemmes’ development

The objecting party argued that the proposal was against the public interest given the need for more housing.

“The proposed development should also be rejected given the proposed displacement of residents from current residential lots and the impact this will have on the existing housing supply.”

According to the objection, there are presently 40 residential units at 104-118 Clarence Street, housing 80 residents.

Resident concerned about antisocial behaviour, finding accommodation

Another resident, who wished to be anonymous, told the council of their fears about what negative externalities the development would bring.

“We do not want our home being turned into a bar and nightclub … We are very concerned about the noise and also the antisocial behaviour and increased violence and crime rates that are associated with the expanded bar precinct that is being planned.”

“We also do not want to be moved out of the building as the location is very convenient for work and commuting. If we are forced out of our home we will be priced out and will have a very hard time finding alternative accommodation that suits our needs. We don’t think it is fair for us to move and the proposal should not be approved.”

Merivale’s response

Corporate communications specialist Sue Cato, who represents Merivale, told the Herald that the company had consulted with stakeholders.

“Prior to lodgement, Merivale undertook a comprehensive consultation process, including correspondence and briefings, with thousands of surrounding residents and business owners.”

“It was a completely positive process with wonderful support received from residents and businesses alike.”