Findings
15 Two key aspects affect this proposal. The first is that the site is at a zone interface between commercial and residential zoning. The second is that the design of the proposal is constrained by the shape of the existing building, which is already two storeys at the rear and is likely to have been designed without consideration of a residential floor being added to it.
16 In Seaside Property Developments Pty Ltd v Wyong Shire Council [2004] NSWLEC 117, Bly C set out a principle on how development at zone interfaces should be assessed. The Commissioner said:
As a matter of principle, at a zone interface…, any development proposal in one zone needs to recognise and take into account the form of existing development and/or development likely to occur in an adjoining different zone.
17 Applying the principle to this case suggests that the residents of the properties in James Street must accept that they adjoin a commercial zone and that they cannot reasonably expect development to their east to be the same as if they adjoined a residential zone. Conversely, the designer of this proposal must accept that the proposal will affect people's residential amenity, which must be assessed with more sensitivity than if it were impacting on another commercial property. There are no guidelines or suggestions in LEP 2000 or DCP 2000 on how the zone interface principle should be interpreted in practice, so it falls to the Court to formulate such guidelines.
18 In my opinion, the residents of James Street have a reasonable expectation of a 6m setback from their common boundary, with a strip of dense landscaping along that boundary. (This distance is based on the rule-of-thumb 12m separation generally accepted for reasonable privacy, and on the assumption that there will be at least 6m setback provided on the residential properties.) Beyond the 6m wide setback, there may be a two-storey building that is fully visible from the residential properties in James Street. Impacts of visual bulk, overlooking or overshadowing resulting from a two-storey building set back 6m from the common boundary are likely to be considered as reasonable impacts arising from the adjoining commercial zoning.
19 Given that DCP 2000 does not contain a two-storey height limit for the site (and other similarly zoned sites), I do not think that a blanket two-storey limit is reasonable. What is important is that third and subsequent storeys should not be visible (or at least not be wholly visible) from the residential properties. A third storey should therefore be set back behind the two-storey portion, so as not to be visible from the rear yards of the James Street properties (assessed from the view point of a person with an eye level of 1.6m, standing at 6m from the common boundary). Subsequent storeys should also be invisible from the James Street properties.
20 The application of the above guideline to the proposal must take into account that the proposal is constrained by the existing building, which has a larger setback than 6m but which does not allow for strip landscaping at the common boundary. The application provides insufficient information on levels to allow me to draw an accurate section through the James Street properties and the subject site to determine at exactly what point the proposed residential floor would cease to be visible from the James Street properties. Based on the incomplete information available to me, it appears that the setback of 4.5m suggested by the council would generally comply with the guideline. If the residential floor set back by 4.5m, it would either not be seen, or would be only partially seen, from the rear of the James Street properties.
21 I have taken into consideration that the proposal is well below the permissible FSR for the site. The fact that realising the development potential of the site appears to be incompatible with a sensitive design towards the James Street properties is, in my opinion, due to the fact that the existing building so strongly constrains the design. If this proposal were unconstrained by the existing building, it could achieve more floor space without presenting such a large bulk towards the James Street properties.