Conclusions and findings
51 In considering the hours of operation of the site, I have had regard to the DCP, the proximity of the site to residential areas, the comments of the residents in relation to their concerns, particularly in relation to the outdoor areas and the impact of noise from patrons leaving the premises, the views of the police, the extent of alterations and additions proposed, the change in the nature of the use of the hotel and the hours that the hotel was approved to trade prior to this development application. I also had regard to whether there has been a consistent application of the trial periods and I am guided by the following cases which I consider are relevant to this application. Ashbian Nominees Pty Ltd v Sydney City Council [2008] NSWLEC1436, Kotis & Ors v Sydney City Council [2008] NSWLEC 1521, George Thomas Hotels v Council of the City of Sydney [2009] NSWLEC 1080, Australian Leisure and Hospitality Group Pty Ltd v Council of the City of Sydney [2010] NSWLEC 1161 and Icon Hospitality Group Pty Ltd v Council of the City of Sydney [2010] NSWLEC 1186 address, in part, the issues that must be determined in this application. These also demonstrate that the application of a trial period for extended hours is accepted practice and has been consistently applied by the council and this Court.
52 I consider that Section 2.1 of the DCP is an important consideration. This is the strategy of the plan and the aims are clear. It states "Late night trading hours are considered by the City of Sydney Council to be a privilege. Late trading hours will only be approved in circumstances where an ongoing commitment to good management is evident through a series of successful trial periods." Whilst I accept that a hotel has been trading on the site for over one hundred years, this application introduces new elements i.e. outdoor dining areas, that have not been part of the hotel in the past. Therefore, the provisions of section 2.3 part d apply to those areas.
53 I consider that the note to clause 2.3 should apply to the internal operations of the hotel as I do not consider the interior portion of the hotel has been intensified in any way. The nature of the use has changed from a hotel that contained primarily bar areas with a night club and restaurant to one that provides considerably more dining areas, function rooms and a café in addition to the bar and lounge areas. The capacity of the hotel will not increase, and, from the evidence provided, is likely to result in less patrons attending than under the previous arrangements.
54 Accordingly, as the evidence available demonstrates that the site can operate in accordance with all relevant noise criteria, the hours of the indoor areas should not change from that which currently applies. It is noted that whilst compliance with standards will be achieved, noise from the hotel will still be audible and there is always the issue associated with patrons leaving the premises. Those hours are 10am to 12 midnight Monday to Saturday and 10am to 10pm on Sunday and the consent allows, subject to a trial period, trading of the indoor areas until 12 midnight, seven days per week. Those hours are consistent with the DCP provisions however exceed that recommended by the police which suggest that the site should close at 10pm on Sunday. This requirement would not be derogation from the original consent but would change the hours approved in the current consent. Accordingly, I consider that it appropriate to allow a 12 month trial period for the hours between 10pm and midnight on Sundays in order that the operation of the hotel and particularly its management can be assessed during that trial period. The applicant accepts this reduction in hours.
55 With regard to the outdoor areas, there are two new areas that are introduced under the consent. These are the rear dining area that was previously an enclosed restaurant area and the verandah area, where seating for 54 persons and an unquantified number standing, is proposed. The acoustic experts agree that the noise from those areas will not exceed 5dB(A) above background noise level when these areas are in use and that this would comply with the noise criteria set by the OLGR. Whilst I accept that this is the appropriate standard in relation to noise, I also accept the views of the residents in relation to the use of these areas and, as the achievement of the acoustic goals is dependant on management of the areas, such as ensuring patrons are evenly distributed over the verandah area and limiting patrons within the outdoor dining area, such controls should be the subject of a trial period.
56 The applicant accepts a trial period for the hours between 10pm and midnight however those hours exceed those which the council has determined through its DCP, to be appropriate for premises in a local centre area. Those are base hours of 10am to 8pm and extended hours on a trial basis from 8pm to 10pm. I consider that those hours are appropriate in the circumstances of the case for the verandah area. The trial period will allow the operators of the site to demonstrate that it can operate without any adverse impacts to the amenity of the area and if that is the case, then there is opportunity under the DCP for further extensions of the trial period and, if the objectives of the DCP, including those which ensure that there are no adverse impacts on the amenity of the residential area further consideration to extended hours could be given. As the hotel has not commenced operating in the form approved under the consent, it is not possible to assess whether its operation can be conducted without impacting on the amenity of the adjacent residential area. As this is the main aim of the DCP, the trial period must apply.
57 In relation to the rear outdoor dining area, I consider that the controls on capacity within this area would be sufficient to ensure that the objectives of the DCP are met. I consider that the area is important as it provides an area for smoking that is not available anywhere on the site and accordingly, the public footpath would be the alternate area available, such use having adverse impacts on the Watkin Street residential area. the area is enclosed by high walls and has an operable roof which, according to the acoustic experts, may further mitigate noise impacts.
58 For those reasons, I consider that the use of the area until midnight, on a trial basis, is appropriate subject to the limitations on capacity that reflect the acoustic expert's requirements and those other requirements referred to in paragraph 36 of this judgment. The means of transitioning patrons from this area and the need to close the roof must be included in the Plan of Management for the site. The base hours of the council's DCP should remain because management practices must be engaged to ensure compliance with the acoustic standards and the success of those practices must be assessed.
59 All conditions relating to the trial periods should include those provisions, described by Mr Clay as a 'grace period' to reflect the requirements of Section 2.7 of the DCP, including clarification that the period includes the time in which any determination by this Court is made.
60 Condition 9 which controls occupancy is to be retained with the following rates applied as agreed between the parties:
Ground floor (including outdoor dining area) 440 persons
Level 1(including verandah) 200 persons
Level 2 (excluding offices) 83 persons
61 Condition 10 can be modified to reflect the recommendations of the acoustic consultants, in particular, those matters listed in paragraph 24 of Dr Tonin's report and supplemented by those requirements of Mr Cooper's report.
62 As the windows to the King Street frontage are a new feature of the hotel, it is appropriate to introduce a trial period during which they can be opened. I agree that this is not only a noise issue and therefore, consider that it is appropriate to allow a trial period whereby they are required to be closed at 10pm as the base hours however, with a trial period to 12 midnight. The windows along Watkin Street to the café area are to close at 8pm in accordance with Mr Cooper's advice.
63 The provision of security is an important element of the management arrangements of the hotel and one that, for major events, should be left to the discretion of those responsible for the safe operation of the hotel. Accordingly, I consider that it is appropriate to leave that aspect to be addressed in the Plan of Management. I note that the requirements of parts i and ii of condition 15 were not contested by the applicant and should remain.
64 I agree with the acoustic experts that condition 19 should be modified to reflect that it applies only when the premises are in use and that the provision of condition 28 is sufficient to address any issues in relation to the commercial premises. The applicant accepts the implications of that condition.
65 The acoustic experts also agree that condition 20 should only relate to spruiking and I agree.
66 Implementation of those recommendations referred to in paragraph 59 of this judgment render the requirements of condition 22 superfluous provided there are no speakers installed on the verandah. Amendment of the condition to prohibit the installation of speakers to the verandah area is appropriate.