Council has endorsed a number of actions to encourage investment in development in the city centre.

Administrator Robert McGregor said that in August last year Council decided to investigate why, despite the issuing of development consents for a number of major projects around the city, many of these had not moved on to the construction stage.

“We wanted to ensure that it wasn’t Council’s approval process that was limiting development in the city. Based on the work undertaken by IRIS and Council Officers, the main reasons for non commencement include; the Global Financial Crisis, lack of available funds and competition from outer-city locations.”

The level of rental return was a key factor in the decision to invest and in enabling projects to gain funding support. The report identified that commercial rent levels would need to increase by up to 20% for many projects to be financially viable. In order to gain a clearer picture of future demand for rental properties, and illustrate to potential investors the potential for return, Council agreed to coordinate a detailed employment and floor space database.

Council will also review land-use zones around the city centre to ensure new commercial developments are only approved in appropriately zoned areas in order to maintain a viable and vibrant CBD.

Council and the University of Wollongong will revisit the Innovation Campus Master Plan Review and work together with the NSW Government on refining existing strategies to promote the value of both the CBD and the Innovation Campus to prospective investors in the area.

“While it is not Council’s role to intervene in the operation of market forces, we do believe that by working collaboratively with the business community we can work to promote and deliver a vibrant City Centre,” said Administrator McGregor.