Plans for a $14.3 million highrise block of units in the Bexley North town centre have been knocked back because it would be likely to displace lower income households in the area.
The plan to demolish two unit blocks to build a seven-storey highrise with 56 apartments at 8-20 Sarsfield Circuit, Bexley North has been refused by the Bayside Local Planning Panel on May 21.
The proposal was to demolish an existing four-storey, 12-unit block and another two-storey block with four units and six shops fronting the council car park.
But there were concerns in the council assessment that the development reduce affordable housing in the area.
The existing two-storey mixed-use building that would be demolished is considered to be low-rental.
Australian Bureau of Statistics Census details show that 27 per cent of dwellings within Bexley North were rentals and the proposal has the potential to result in the loss of three to four affordable units in the market, equating to six bedrooms in total, the council's assessment found.
And up to 16 low rental units in total could be displaced by the development.
"The proposal is considered likely to result in the displacement of lower income households within the community," the council's report said.
"If residents wish to remain in the locality they may be forced to compromise their current living conditions by either higher rents or a lesser quality accommodation."
Bayside Council staff recommended refusal of the development application on a number of grounds including that insufficient information had been provided by the applicant on the impacts of the proposed development regarding the loss of existing affordable housing on the site.
The planning panel found that the DA was inconsistent with the Rockdale Local Environmental Plan 2011 and did not provide any demonstrable public benefit to the community.
"The proposed development is not in the public interest and is likely to set an undesirable precedent," the council officer stated.
The council received 12 submissions raising a number of issues including that it was an overdevelopment of the site and traffic congestion.
The 1200sqm site had a height limit of 22-metres and a floor space ratio of 2.5:1.
The DA proposed a height of 26m and FSR of 3.35:1.
This was a variation of 18 per cent to the height standard and 34 per cent to the FSR. The council assessment found that the variations were unwarranted.
The proposal was deemed an overdevelopment of the site and said substantial modifications were required to reduce the height, density, built and scale of the development in order to provide a proposal that was consistent with the future desired character of the area.