Commissioner's judgment
3A summary and extracts from the judgment follow. The relevant planning instruments are set out at [17] - [23]. Paragraphs [17], [18], [22] and [23] relevantly state:
17 The small area of the subject site above the mean high water mark (MHWM), which is not the subject of the development application, is zoned 6- Open Space under the Manly Local Environmental Plan 1988. The development application relates to that part of the site below the MHWM which is not within the Manly local government area, and which is zoned W2 - Environmental Protection under Sydney Regional Environmental Plan (Sydney Harbour Catchment) 2005 (the SREP).
18 The SREP establishes three categories of development: "land-based development", which is development carried out wholly above the mean high water mark, and development for a number of specified purposes; "water-based development", and "land/water interface development". The latter two terms are defined in the Dictionary to the SREP as follows:
land/water interface development means development for any of the following purposes:
(a) boat repair facilities,
(b) boat launching ramps,
(c) commercial marinas,
(d) water-based restaurants and entertainment facilities,
(e) water recreational facilities,
(f) when carried out wholly or partly in the waterway:
(i) dwellings of any type (including serviced apartments),
(ii) commercial premises,
(iii) tourist facilities,
(iv) shops and retailing,
(v) restaurants,
(vi) recreational or club facilities (whether used for activities based on land or on water),
(vii) car-parking,
and includes land-based development and water-based development when carried out as part of development for a purpose referred to above.
...
22 Specific development controls are provided in cl18:
18 Development control in the waterways
(1) Except as otherwise provided by this plan, in relation to land within a zone to which a column of the Table to this clause applies:
(a) the development (if any) that may be carried out without development consent is indicated by the letter "P", and
(b) the development (if any) that may be carried out only with development consent is indicated by the letter "Y", and
(c) the development (if any) that is prohibited is indicated by the letter "N".
(2) Despite subclause (1), development not referred to in the Table to this clause may be carried out with development consent, but only if the consent authority is satisfied that the development:
(a) is not inconsistent with the aims of this plan or the objectives of the zone in which it is proposed to be carried out, and
(b) is not inconsistent with any other environmental planning instrument that applies to the land, and
(c) will not otherwise have any adverse impacts.
23 The Table accompanying cl 18 specifies that in the W2 zone, "water-based restaurants and entertainment facilities" are prohibited. The Dictionary to the SREP defines "water-based restaurants and entertainment facilities" as follows:
water-based restaurant and entertainment facility means a vessel or structure that floats on, or is fixed in, the waterway, that is used as a club or restaurant or for entertainment (on a commercial basis) and that has a direct structural connection between the foreshore and the waterway.
4The Appellant's submissions are summarised at [27] - [32] to the effect that the proposed use is not a club or restaurant or for entertainment and therefore not prohibited as a "water-based restaurant and entertainment facility". The proposal has two separate uses, a convention centre and function centre undertaken for the purpose of commercial premises. The Appellant accepts his proposal meets the other parts of the definition of water-based restaurant being a structure in a waterway with a direct structural connection between the foreshore and the waterway. Commercial premises are not defined in the Sydney Regional Environmental Plan (Sydney Harbour Catchment) 2005 ( SREP).
5The Council submitted, as summarised at [33] - [34], that the purpose of function centre and provision of conferences are two separate independent uses of the land. It accepts the use for a conference facility is a permissible innominate use. The function centre use is a restaurant as the service of food is an essential component.
6The relevant principles in relation to characterisation are identified at [35] - [36] referring to Shire of Perth v O'Keefe [1964] HCA 37; (1964) 110 CLR 529 and Chamwell Pty Ltd v Strathfield Council [2007] NSWLEC 114; (2007) 151 LGERA 400 at 408.
7In [39] of the judgment the Commissioner held:
In my view, when considered at a high level of generality, the purpose of the proposed uses of level 1 could be regarded as being to provide a venue for the holding of functions, including weddings, and conferences, at which both food and alcohol can be served. That purpose could be usefully defined in terms of being a "function centre" as defined in the Standard Instrument (Local Environmental Plans) Order 2006, which means "a building or place used for the holding of events, functions, conferences and the like..." However, that definition does not apply in terms to the SREP, and the SREP does not make specific provision for a "function centre" either in the Table which forms part of cl18 or in the definitions in the Dictionary to the SREP, or in other provisions such as the definition of "land/water interface development". In considering how to characterise the purpose as understood from the amended development application, the issue is whether the proposed uses as a conference facility and a function centre are for a single purpose, namely as "commercial premises" as contended by the applicant, or for two separate purposes as contended by the Council.
This paragraph is not criticised by the Appellant. The issue in the last sentence is correctly identified in his view.
8Paragraph [40] refers to the principles applicable to the construction of environmental planning instruments in Matic v Mid Western Regional Council [2008] NSWLEC 113 at [7] - [9]. Paragraph [41] considers the application of cl 18 in the context of the SREP and states that it is common ground that the requirements of cl 18(2)(a), (b) and (c) would be met provided conditions were imposed to address environmental impacts. It is also agreed that the Council is the consent authority for this development. These paragraphs are not contentious.
9At [42] - [45] the Commissioner held:
42 The definition of "land/water interface development" includes "water-based restaurant and entertainment facility", and both "restaurants" and "commercial premises" when carried out wholly or partly in the waterway. The term "restaurant" is not defined in the SREP, and I adopt the ordinary meaning as submitted by the applicant, namely that it is a place where meals are served to customers. Having regard to the proposed hours of operation, which include operating the kitchen until 10pm; the type of functions proposed; the size of the kitchen and food and drink service areas; and size of the area proposed for customers seated at tables, I am satisfied that when used for functions level 1 can be characterised as being used for the purposes of a "restaurant", understood in its ordinary meaning. A "water-based restaurant and entertainment facility" is a form of "land/water interface development" defined both by the range of uses carried on in a structure, and by the location and connection to land and the waterway of the structure within which it is located. I agree with the Council that the proposed use of level 1 for functions falls within this description, both in terms of the structure and in terms of the proposed use for the purpose of a restaurant. That means that if the definition of "commercial premises" in the Model Provisions can be used to interpret paragraph (f)(ii) of the definition of "land/water interface development", it would not in terms apply to this proposed development, since it is for a purpose elsewhere defined. I agree with the Council that the dictionary definition of "commercial" meaning "engaged in, bearing on commerce" ( Australian Concise Oxford Dictionary 7 th ed) is too broad to be of assistance in the context where the proposed use as a function centre is for one of the specific purposes in paragraphs (a)-(e) of "land/water interface development".
43 In considering the proposed use of level 1 as a conference facility, I agree with the Council that the service of food and beverages in conjunction with that use would be ancillary to the provision of the conference facility, and that the conference facility could be characterised as being a form of commercial premises. In reaching that conclusion, the decision in Optima Developments Pty Ltd v Lake Macquarie City Council [2003] NSWLEC 224 relied upon by the applicant is of limited assistance, being concerned a different form of proposed development and different planning controls which included the Model Provisions definitions. If characterised as for the purpose of "commercial premises", the use of level 1 as a conference facility would fall within paragraph (f)(ii) of "land/water interface development"; it is not included in the Table to cl18, and would, by virtue of cl18(2) of the SREP, be permissible with consent if it meets the requirements of cl18(2).
44 The use of level 1 for the purpose of a function centre, being a "water-based restaurant and entertainment facility", is prohibited by cl18(1); the use for the purpose of a conference facility is permissible with consent by virtue of cl18(2) of the SREP. The issue is whether the function and conference uses should be regarded as being two independent uses of the site, or whether one is subordinate, or ancillary, to the other: Solicitor General for New South Wales v Foodbarn Pty Ltd (1972) 32 LGRA 130. As held in Baulkham Hills Shire Council v O'Donnell (1990) 69 LGRA 404, it is a question of fact and degree in all the circumstances of the case.
45 The material before me supports the conclusion that neither of the function or conference uses is subordinate or ancillary to the other. The Plan of Management address both proposed uses, for example in part 8(iii) which specifies that during a conference the windows on the western faade would be closed, whereas during a function all the windows to the south and west facades would be closed. The Plan of Management specifies a maximum number of 300 patrons on the premises "in full conference mode"; for an "average wedding", the number would be smaller. The proposed hours of operation do not distinguish between the two proposed uses. If the space available for clients is divided as indicated on the plans, it is possible that both uses could be carried out at the same time, and the configuration of the kitchen, bar, and service corridor area would enable food and drinks to be served to two separate functions. As neither proposed use is ancillary to the other, the prohibition of a "water-based restaurant and entertainment facility" in the W2 zone means that development consent cannot be granted.
10An agreed bundle of documents containing the DA and Statement of Environmental Effects and the plans before the Commissioner was tendered by the Appellant.