11 The proposal has a setback of 4.5m from Penshurst Street (scaled from the drawing). The adjoining building to the south is built on the street alignment. It was built as a shop and, although it is now used as residential in the rear, it still appears as a commercial building. The development to the north, across Owen Street, is a group of townhouses set back 7.5m from Penshurst Street. The question arises: what is the appropriate setback for the subject development, given that it is between a building that has no setback and a group of dwellings that observes the generally required 7.5m.
12 The Court had appointed Ms D Laidlaw as the planning expert in this case. In her opinion, the setback of 4.5m is appropriate, since there is no established setback in Penshurst Street. I do not think that this is correct. The building to the south appears clearly as part of an old shopping strip. The building to the north is, and appears as, a townhouse development. The proposal has the same character and should observe the required setback of 7.5m.
13 I note that an earlier proposal containing four dwellings had a setback of 5m from Penshurst Street. If one of the dwellings were removed (without expanding the three remaining dwellings), the proposal would be 9m from Penshurst Street. I conclude therefore that it would not be difficult for the proposal's designer to observe the 7.5m setback.
14 The criteria in DCP 15 for varying the minimum allotment size standard are reflected in CSA Architects v Randwick City Council [2004] NSWLEC 179. In that judgment the Court established principles for assessing proposals on small and narrow sites, stating that:
The main criterion for assessing the proposal on its own site is whether it meets other planning controls, eg:
+ Does the proposal meet density, setback and landscaping controls? The most critical control for small and narrow sites is that for setbacks.
+ Is its impact on adjoining properties and the streetscape worse because the development is on a small or narrow site?
Where an application meets other planning controls and the area and width of the site does not exacerbate its impacts, the failure of the site to meet the preferred area or width would usually not be a reason for refusal.
15 The import of DCP 15 and the principle established in CSA Architects v Randwick City Council is that, where a small and/or narrow site cannot be amalgamated, it would be unreasonable to deprive it of all development potential. However, a proposal on such a site should meet all other planning controls. This means that the development potential of an undersized allotment is usually lower than that of a complying allotment, since maintaining setbacks on a small site leaves proportionately less space for development than maintaining the same setbacks on a larger site. The reduced potential is one of the consequences of developing an allotment that is smaller than the minimum specified in the planning controls.
16 I return to the question of the SEPP 1 Objection. In my opinion, the proposal does not meet the requirement set out in DCP 15 for considering applications on undersized allotments, because it does not achieve the setback requirements of the DCP. The earlier proposal containing four dwellings demonstrates just how easily the application could achieve the required setback. Since the proposal does not meet the criteria for varying the development standard, it also does not meet the objectives of the standard. The SEPP 1 Objection is therefore not well founded.
17 I accept that it is unlikely that the site can be amalgamated with its southern neighbour. The neighbour to the west is not zoned 2(b), so amalgamation would not serve any purpose. The site will probably have to be developed on its own. However, the applicant cannot expect to develop it to the same intensity as if it were a complying allotment. On the basis of an earlier version of the application, I am satisfied that a proposal containing three small dwellings or two large ones could achieve the required 7.5m setback from Penshurst Street.