Agenda of General Meeting - Wednesday, 8 April 2026

General Manager's Report No. GM3/26

Office of the General Manager

Date of Meeting: 8/04/2026

1 DRAFT 2026-2030 DELIVERY PROGRAM, INCLUDING THE 2026/27 OPERATIONAL PLAN, BUDGET, RATING STRUCTURE AND FEES AND CHARGES - ADOPTION FOR PUBLIC EXHIBITION

EXECUTIVE SUMMARY

· The draft 2026-2030 Delivery Program, including the 2026/27 Operational Plan, has been prepared and incorporates budget information, the proposed rates to be charged to ratepayers, and the fees applicable to the domestic waste service. Other proposed fees and charges for 2026/27 are detailed in a separate document.

· The draft 2026-2030 Delivery Program, including the 2026/27 Operational Plan, is based on Council maintaining current levels of service in 2026/27, together with capital expenditure of $61.1 million. It includes a total of 159 actions across the period 2026/27 to 2029/30, of which 149 are derived from adopted strategies and technical documents or are required to meet legislative obligations. Of these actions, 121 are scheduled for progression in 2026/27.

· The draft 2026/27 Annual Budget is based on a 5.5% rate increase approved by IPART in the fourth and final year of Council’s Special Rate Variation and provides for a budget surplus of $3.13 million based on a Net Operating and Capital Result after Funding.

· It would be financially prudent to retain this surplus throughout the financial year to respond to unforeseen budget shocks (i.e. natural disasters and/or asset failures) that can occur.

RECOMMENDATION

THAT:

1. Council adopt for public exhibition the draft 2026-2030 Delivery Program and 2026/27 Operational Plan which includes the draft Budget, Rating Structure and Fees and Charges for 2026/27 and make available for public comment from 9 April to 11 May 2026.

2. Council note the rating information contained in the draft 2026-2030 Delivery Program and 2026/27 Operational Plan that aligns with Year 4 of the Independent Pricing and Regulatory Tribunal’s (IPART’s) Special Rate Variation approval for Hornsby Shire Council (i.e. a 5.5% rate increase for 2026/27).

3. Following public exhibition, after consideration of all submissions, the 2026-2030 Delivery Program and 2026/27 Operational Plan, including Budget, Rating Structure and Fees and Charges, be referred to Council for further consideration and adoption before 30 June 2026.

PURPOSE

The purpose of this report is to seek Council’s adoption of the draft 2026–2030 Delivery Program and 2026/27 Operational Plan (including the 2026/27 Budget, Rating Structure and Fees and Charges) for the purpose of public exhibition. This will enable the draft documents to be publicly exhibited from Thursday 9 April to Monday 11 May 2026, prior to being reconsidered by Council for final adoption in June 2026.

BACKGROUND

By 30 June in the year following local government elections, councils are required to prepare a ten-year Community Strategic Plan (CSP), a four-year Delivery Program and a one-year Operational Plan, together with a Resourcing Strategy. These documents form part of the Integrated Planning and Reporting framework mandated by the Office of Local Government.

The framework requires councils to engage with the community to identify key priorities and aspirations for the future of the area, as well as the major issues and challenges facing the Shire. This engagement enables the community to have meaningful input into how Council, other levels of government and the community itself will respond to these issues and challenges.

The planning process also requires consideration of the resources that are realistically available to deliver the community’s priorities and aspirations. Council’s Community Strategic Plan, Your vision | Your future 2035, was endorsed by Council in June 2025 (GM25/25 – 11 June 2025).

DISCUSSION

Draft 2026-2030 Delivery Program, including the 2026/27 Operational Plan (Attachment 1)

The draft 2026-2030 Delivery Program represents Council’s response to the Community Strategic Plan, Your vision | Your future 2035, and outlines Council’s commitment to the community for its term of office. The principal activities to be undertaken by Council are integrated with the Plans of action in the Community Strategic Plan, aligned to the Strategic directions and Long-term goals, and consolidated into a four‑year program of actions and capital projects, which will be reviewed annually through the budget process.

The draft 2026/27 Operational Plan forms part of the Delivery Program and outlines the actions and capital projects to be undertaken during the year. It also includes Council’s detailed annual budget and Statement of Revenue Policy, including proposed rates, fees and charges.

Council undertook extensive community engagement over the three‑year period from 2018 to 2021, involving more than 15,000 stakeholders across a broad range of demographic groups. This engagement primarily sought community feedback to inform the development of strategies and technical documents that guide the long‑term future of the Shire.

Further community engagement was carried out between 2022 and 2024, with more than 10,000 people participating. This included Community Satisfaction Surveys conducted in 2023 and 2024 to assess satisfaction with Council services and facilities; a Liveability Census in 2023 to identify what matters most to local communities and their priorities for improving neighbourhoods; and consultation on the Social Plan in 2024.

The insights and feedback gathered through these engagements directly informed the development of the Community Strategic Plan, Your vision | Your future 2035.

Council applies a continuous planning approach, supported by regular reviews and updates to maintain flexibility and responsiveness and ensure progress remains aligned with strategic objectives. In 2025, Council again participated in Place Score’s Australian Liveability Census, providing local communities with an opportunity to share what matters most to them and offering insights into the performance of local neighbourhoods. More than 690 local residents participated in the survey.

The actions outlined in the draft 2026–2030 Delivery Program, including the 2026/27 Operational Plan, respond directly to the priorities and feedback identified by the community. Council maintains a four‑year rolling program of actions that is reviewed annually.

Across the four Themes of Liveable, Sustainable, Prosperous and Collaborative, the Delivery Program across the period 2026/27 to 2029/30 includes a total of 159 actions, of which 149 are derived from adopted strategies and technical documents or are required to meet legislative obligations. Of these actions, 121 are scheduled for progression in 2026/27, and include:

LIVEABLE

· Developing Functional Design Briefs for new libraries and multi-purpose community centres at Hornsby and Cherrybrook Metro precinct

· Reviewing the Community Lease and Licensing Policy

· Commencing a review of the Pennant Hills Town Centre and surrounding corridor

· Preparing a Medium Density Housing (townhouse) Strategy and Planning Proposal

· Preparing an Urban Unstructured Recreation Strategy

· Preparing a Natural Areas Recreational Strategy

· Developing an Active Transport Strategy.

SUSTAINABLE

· Reviewing the Sustainable Hornsby 2040 Strategy

· Coordinating a waste volunteer program

· Undertaking public tendering for a new Food Organics Collection and Processing Services Contracts to commence 1 July 2027

· Reviewing the Contaminated Lands Policy

· Preparing a Coastal Management Program.

PROSPEROUS

· Reviewing and updating the Economic Development and Tourism Strategy 2021-2026

· Developing an Integrated Infrastructure Plan for Hornsby Town Centre

· Undertaking the Special Entertainment Precinct Trial for Hornsby Town Centre

· Reviewing the Development Contributions Plans

· Developing the Brooklyn Place Plan for adoption by Council.

COLLABORATIVE

· Conducting internal audits on major projects, cyber security, strategic procurement and DRIVES24

· Undertaking a Community Satisfaction Survey of Council services and facilities

· Conducting service reviews of the Community and Cultural Facilities, Communications and Engagement, and Emergency Management services

· Developing and implementing a Psychosocial Hazard and Risk Mitigation Program for staff

· Developing the Data Strategy 2025-2029 and submitting for formal approval.

Research undertaken in 2020 found that 96 per cent of Hornsby Shire residents consider their quality of life to be good to excellent. More recent research conducted by Place Score as part of the 2025 Australian Liveability Census rated liveability in Hornsby Shire at 69 out of 100, three points above both the state and national averages. These results indicate that Hornsby Shire is a community with high expectations for the quality of life and the standard of services provided to residents, businesses and visitors. Meeting these expectations is best supported by Council continuing to deliver services at established levels, supported by ongoing investment in capital projects.

Five significant projects are currently underway that will deliver transformational outcomes across Hornsby Shire. These projects are intended to revitalise the Hornsby CBD, provide future housing and employment, support economic activity, deliver a contemporary arts and cultural hub, enhance sporting and recreational facilities and improve public spaces and streetscapes, all contributing to the quality of life for residents. The projects are:

· Hornsby Park redevelopment – transforming the former Hornsby Quarry into a major public parkland, providing new recreational spaces and restored bushland, with $17.8 million allocated in 2026/27

· Hornsby Town Centre – strengthening future housing, employment and infrastructure growth while improving the public domain, liveability and accessibility of the town centre

· Wallarobba Arts and Cultural Centre redevelopment – delivering a contemporary arts and cultural hub that supports local artists and creative communities, provides flexible exhibition and community spaces, and contributes to Hornsby Town Centre’s role as a civic and cultural destination, with $550,000 allocated in 2026/27

· Westleigh Park redevelopment – providing new sport and recreation facilities and opportunities for unstructured recreation while protecting significant bushland, with $200,000 in section 7.11 funding allocated in 2026/27 and subject to confirmation of NSW Government funding

· Public Domain improvements - including upgrades in Galston Village to enhance streetscapes and public spaces and create a more attractive, accessible and pedestrian‑friendly village centre, along with gateway and suburb signage, with $5 million and $1.2 million allocated respectively in 2026/27.

In total, there are $61.1 million worth of capital projects proposed in the draft 2026/27 Operational Plan, of which $9.5 million is funded by grants, $13.9 million is funded by section 7.11/section 7.12 development contributions, $12.8 million is funded by restricted assets, $5.5 million is funded by the Special Rate Variation and $2.4 million is funded by the Catchments Remediation Rate. As well as the five transformational projects mentioned above, other capital projects proposed for 2026/27 include:

· Local road and traffic improvements worth more than $8.7 million

· Local footpath improvements and new shared paths worth over $3.6 million

· $6.9 million to improve various parks and sporting facilities including amenities upgrades at Normanhurst Oval and North Epping Oval; public toilet upgrade at Asquith Oval; oval and playground upgrade at Edward Bennett Oval, Cherrybrook and playground upgrade at Fagan Park, Galston

· $3.1 million on bushland recreational and accessibility improvements

· $2.5 million to upgrade stormwater drainage

· $2.4 million on Catchment Remediation Rate projects including installation of gross pollutant devices at Kenburn Avenue and Woodgrove Avenue, Cherrybrook; and wetland systems at Clarinda Street, Hornsby and New Farm Road, West Pennant Hills (Walumeda)

· $1.2 million to upgrade community centres.

The Draft 2026/27 Budget

Council staff commenced the preparation of the draft 2026/27 Budget in November 2025. To minimise some of the financial constraints and considerations impacting local government generally and Council specifically, and to avoid excessive bids for funding which could not be met, the draft 2026/27 budget parameters included:

· Alignment with the parameters and projects identified in the Long-Term Financial Plan (LTFP) adopted by Council at the 9 July 2025 General Meeting.

· Initiatives agreed to in successive versions of the LTFP for inclusion in the 2026/27 budget including $5.0 million for Galston Public Domain, funded from surpluses set aside in previous years as directed by the LTFP.

· A $653K increase in the allocation for new footpath construction from $500K to $1.153 million. The increase has been funded by $500K set aside from the 30 June 2025 budget surplus and $153K from Section 7.12 development contributions.

· A general rate increase of 5.5% for 2026/27, representing the fourth and final year increase in the Special Rate Variation approved by IPART.

· Additional funding allocated from the Special Rate Variation of $3.82 million for the renewal and maintenance of Council’s asset base, as supported by Council’s Asset Management Strategy.

· Allocations totalling $8.27 million for Strategic Initiatives funded by the Special Rate Variation that align with Council’s application to IPART for the SRV. Funding is to be directed towards high priority actions to upgrade community infrastructure, protect bushland and improve open space, construct connected walking and cycling paths, improve cyber security technology and progress community development and climate change adaptation programs. $1.4 million to fund asset maintenance and renewals at Hornsby Park is also included.

· Zero external loan borrowing and the continuation of prudent financial management.

· A nil increase to non-contractual Divisional expenditure (net of direct labour) – price increases for non-contractual expenditure have been required to be offset by productivity improvements or reviewing service provision.

· Direct salaries and wages based on an estimated Local Government (State) Award increase of 3.5% and calculated on a 50 pay week year. The two-week reduction from a full year represents organisational savings which occur because of the average delay in replacing staff members who retire/resign/etc. and/or productivity improvements that are required.

· The use of Council staff where possible to undertake grant funded projects and Section 7.11 and 7.12 development contributions projects.

After applying the parameters above the draft 2026/27 Net Operating and Capital result after funding is a cash surplus of $3.13 million (1.5% of the total expenditure budget), which is $242K below the surplus forecast in the LTFP, but remains materially in line with the Plan. The difference is because the LTFP included an estimated 3.0% increase to salaries and wages from the Local Government Award, which has since been revised up to 3.5%. The actual Award increase is expected to be known by June 2026 and a revised 2026/27 – 2035/36 Long Term Financial Plan will be referred to Council later in the year.

A justification of the Special Rate Variation was to generate a sufficient year end budget surplus that could be applied to ‘budget shocks’ that can occur throughout a financial year and to meet the financial performance measures set by the Office of Local Government. This requires commencing the year with a forecast surplus to enable Council to respond in a timely manner towards infrastructure assets that may fail, the impact of natural disasters on local service provision and clean-up costs, or cost shifting from other tiers of government.

Rising fuel prices and supply disruption due to the war in the Middle East may increase the cost of service delivery and infrastructure construction planned in 2026/27. Council will continue to monitor this situation and will respond appropriately if needed.

It is therefore financially prudent to commence the year with the forecast surplus of $3.13 million (1.5% of the total expenditure budget), to respond to possible budget shocks such as those outlined without affecting the normal continuance of service provision throughout the year.

Capital Works Program

The total capital works budget for 2026/27 is $61.1 million and is largely funded from external reserves such as grants and development contributions.

Capital budgets have been provided by Project Managers and include budget estimates for large projects, with work scheduled to take place over several financial years. For these projects, the completion of works planned in 2026/27 is dependent upon the delivery of earlier stages currently programmed for delivery in the 2025/26 financial year. Projects requiring the utilisation of grant funds are contingent upon those funds being available.

Fees and Charges

The proposed Fees and Charges for 2026/27 (Attachment 2) have been reviewed and increased by CPI or by an amount which has regard to market conditions and the appropriate cost recovery level. Opportunities to recover administrative and overhead costs in respect of business activities have also been investigated and implemented where appropriate. Where applicable, the final price includes GST which does not contribute any revenue to Council but is forwarded to the Federal Government.

Over previous years, Council’s fees and charges have not kept pace with cost increases. This is because annual CPI estimated for the year ahead has been lower than what has occurred due to a high inflationary environment, which proved difficult to predict. As a result, most fees have fallen behind by 8.7%, equating to around $800K in cost growth.

	2022	2023	2024	Total
Council Increase	1.40	2.10	3.50	7.00
Actual CPI (RBA)	6.10	6.00	3.60	15.70
Difference	4.70	3.90	0.10	8.70

Instead of estimating future inflation, fees will now be adjusted using actual CPI at the end of the previous financial year, as published by the Reserve Bank of Australia. Therefore, for 2026/27 most fees and charges have been increased by published actual CPI of 2.7% as at 30 June 2025.

To maintain financial capacity the adopted Long Term Financial Plan recommended that Council catch up on the previous years' shortfall of 8.7%. Therefore, fees for Parks and Community Services will rise by an additional 2% in 2026/27, meaning an increase of 4.7% has been applied to these fees.

In respect to the Domestic Waste Management charge, a 10% increase has been applied to the draft 2026/27 Fees and Charges and draft 2026/27 Annual Budget. The increase is required to contribute to the cost of historic landfill remediation works at Foxglove Oval, contractual cost increases for waste collection and disposal, and the introduction of new food organics services.

Rating Structure

Council reviewed its rating structure at the April 2006 Ordinary Meeting when it considered Executive Manager’s Report No. CC20/06. That structure has applied in respect of the calculation of the rates since that time and it is recommended that the same rating structure continue in 2026/27. Details of the rate types and yields, rating categories, base amounts, minimum rates for business properties, ad valorem amounts, and other statutory rating information are set out in the draft Operational Plan document.

The Valuer General supplied Council with new land values for properties across the Shire as at 1 July 2024. These values have been used for the 2026/27 financial year and will continue to be used in 2027/28.

The rating information is in line with the 5.5% Special Rate Variation increase approved by IPART for 2026/27. The base amount for ordinary, residential and farmland rates will increase from $740 in 2025/26 to $781 in 2026/27.

Council currently provides a rates rebate of $300 per annum to eligible pensioners, which is greater than the statutory requirement set by the NSW State Government that provides a reduction of up to $250.

CONSULTATION

The formal exhibition period for the draft 2026-2030 Delivery Program, including the 2026/27 Operational Plan, and draft 2026/27 Fees and Charges is scheduled from Thursday 9 April to Monday 11 May 2026.

The draft 2026–2030 Delivery Program, including the 2026/27 Operational Plan and the draft 2026/27 Fees and Charges, will be publicly exhibited and notified through Council’s Your Say Hornsby engagement website, Council eNews, social media, direct email notifications to key stakeholder groups and relevant agencies, and advertising in the local press.

Comments received during the formal exhibition period will be considered and reported to Council prior to adoption of the final 2026-2030 Delivery Program, including the 2026/27 Operational Plan, and 2026/27 Fees and Charges in June 2026.

BUDGET

Any budget implications have been included in the Discussion section of this Report.

POLICY

The draft 2026-2030 Delivery Program, including the 2026/27 Operational Plan, is Council’s principal instruction to the organisation and describes Council’s commitment to the community during its term of office and beyond.

CONCLUSION

The draft 2026–2030 Delivery Program, including the 2026/27 Operational Plan (incorporating the Budget, Rating Structure and Fees and Charges), reflects Council’s prudent and financially sustainable response to the community’s priorities and expected service levels. Public exhibition of the draft documents provides the community with an opportunity to provide feedback on proposed initiatives and activities over the next four years. All feedback received during the exhibition period will be considered by Council prior to the final adoption of the documents in June 2026.

The budget surplus of $3.13 million forecasted at 30 June 2027 is materially in line with the current Long Term Financial Plan. A revised 2026/27 – 2035/36 Long Term Financial Plan will be referred to Council later in the year.

RESPONSIBLE OFFICERS

The officers responsible for the preparation of this Report are the Chief Financial Officer – Duncan Chell – and the Manager, Strategy and Place – Julie Ryland – who can be contacted on 9847 6822 and 9847 6773 respectively.

Nicola Dorman

Acting Director Corporate Support

Corporate Support Division

Glen Magus

Acting General Manager

General Manager Division

Attachments:

1.	Attachment 1 - Draft 2026-2030 Delivery Program including the 2026/27 Operational Plan
2.	Attachment 2 - Draft 2026-2027 Fees and Charges

File Reference: F2025/00279

Document Number: D09316991

Director's Report No. PC6/26

Planning and Compliance Division

Date of Meeting: 8/04/2026

4 PLANNING PROPOSAL - 675-685 OLD NORTHERN ROAD, DURAL

EXECUTIVE SUMMARY

· An owner-initiated Planning Proposal has been received for property Nos. 675-685 Old Northern Road, Dural which seeks to amend the Hornsby Local Environmental Plan 2013 to permit a health services facility on the site with an associated increased height control.

· The Planning Proposal was placed on preliminary (non-statutory) exhibition from 2 December 2025 until 20 January 2026. During this period 12 community submissions were received, raising concerns including traffic, character and infrastructure provision. Transport for NSW (TfNSW), Sydney Water and The Hills Shire Council also provided comment.

· The proposal has been amended by the proponent to address matters raised during the preliminary exhibition and officer assessment process. The amended Planning Proposal includes height and density controls responding to concerns regarding bulk and scale. The amended Planning Proposal would allow for a health services facility on the site that presents as no more than a two storey development when viewed from Old Northern Road.

· A Letter of Offer to enter a Planning Agreement was submitted alongside the Planning Proposal to provide a monetary contribution of $1.1 million to Council to be used for community benefits such as improvements to roads and footpaths. The offer has not been formally considered and would be subject to further negotiations, should the Planning Proposal progress further.

· It is recommended that the Planning Proposal attached to this report be submitted to the Department of Planning, Housing and Infrastructure for Gateway consideration. Should a positive Gateway Determination be received, the proponent would be requested to refine the Planning Proposal to satisfy any Gateway conditions, including updated Traffic Impact Assessment, which may require updates to the final density controls for the site.

· A future report would then be presented to Council seeking public consultation of a refined Planning Proposal, draft Planning Agreement and Development Control Plan.

RECOMMENDATION

THAT:

1. Council support progression of the Planning Proposal for Nos. 675-685 Old Northern Road, Dural, as amended and attached to Director’s Report PC6/26 to the Department of Planning, Housing and Infrastructure for a Gateway determination.

2. Subject to a Gateway Determination, a refined Planning Proposal, draft Development Control Plan and draft Planning Agreement be prepared to respond to Gateway conditions and be presented in a future report to Council for consideration prior to exhibition.

PURPOSE

The purpose of this report is to present an owner-initiated Planning Proposal (attached) for Nos. 675-685 Old Northern Road, Dural to determine whether the proposal should be supported for progression to the Department of Planning, Housing and Infrastructure (DPHI) for a Gateway determination.

BACKGROUND

In April 2022, a Planning Proposal (PP/2/2022) for 679-677 Old Northern Road, Dural was submitted to Council, seeking amendments to the Hornsby Local Environmental Plan 2013 to permit a health services facility as an Additional Permitted Use (APU) and increase the maximum building height on site from 10.5m to 14m. Following consideration of PP/2/2022 Council, at its meeting on 13 July 2022 resolved not to support progression of the proposal due to strategic merit concerns.

In response, the proponent requested a Rezoning Review by the (then) Department of Planning and Environment. The Planning Proposal was reviewed by the Department and the Sydney North Planning Panel. The Panel determined that the Planning Proposal had not adequately demonstrated strategic merit and should not be submitted for Gateway determination. Concerns were raised regarding consistency with the Greater Sydney Region Plan, North Region Plan, Ministerial Directions and Council’s Local Strategic Planning Statement, Employment Lands Study and Rural Lands Study.

The proponent has since engaged with Council officers regarding preparation of an updated Planning Proposal that would address the concerns raised through the assessment of the previous proposal.

Council officers met with the proponent in May 2025. At that meeting, the proponent presented potential responses to concerns raised during the previous assessment process and identified that they had potential to purchase an additional site (683-685 Old Northern Road) which could be included as part of a revised proposal.

In response to that meeting, Council officers provided feedback on documentation that would be required to respond to matters raised in the previous assessment. This included:

· Analysis of the site and its surroundings, including both sides of Old Northern Road, to provide context for concerns regarding change in rural character

· Concept plans and a supporting site-specific DCP, to give more certainty regarding the desired built form and density

· Healthcare demand analysis and assessment of economic impacts, to determine the need for the health services facility land use and the potential impacts on Round Corner, the Hornsby Ku-ring-gai Hospital and other relevant centres

· Updated analysis of traffic, parking and access impacts to address previous comments from (TfNSW)

· Updated assessments to respond to the new site area, such as impacts to vegetation

· Civil infrastructure assessment including sewer and stormwater management arrangements

· Letter of offer detailing community benefit and public domain works

On 27 November 2025, a new Planning Proposal was lodged for 675-685 Old Northern Road, Dural. The Planning Proposal sought to amend the Hornsby Local Environmental Plan 2013 to permit a health services facility as an additional permitted land use on the site, with a maximum building height of 15 metres for the land use. The November 2025 Planning Proposal - as submitted - and supporting reports are available on Council’s Your Say website.

After an initial assessment and preliminary exhibition as discussed in this report, Council officers identified matters that should be addressed prior to progression of the proposal to DPHI for Gateway determination and sought amendments. The updated Planning Proposal which is the subject of this report is attached.

DISCUSSION

This report considers the merit of the Planning Proposal in relation to State and local planning policies and the potential impacts of the proposal. Details of preliminary consultation and submissions received are also summarised.

1. The Site

The site is located on the eastern side of Old Northern Road, and to the south of the Round Corner Town Centre (within The Hills Shire).

Since the previous Planning Proposal was considered, the proponent has acquired the adjoining property at 675-677 Old Northern Road (Lot 2 DP 39369) and the site now comprises three allotments:

· Lot 2 DP 393694, Property Nos 675-677 Old Northern Road, Dural, (single story dwelling);

· Lot 3 DP 395437, Property Nos. 679-681 Old Northern Road, Dural (two storey dwelling); and

· Lot 1 DP 120004, Property Nos. 683-685 Old Northern Road, Dural (single storey dwelling).

The site is rectangular in shape with an area of approximately 5,184m², each lot with an area of approximately 1,700m². The site has a frontage of approximately 75m to Old Northern Road and a depth of 90 metres. The site slopes down from the Old Northern Road to the eastern, rear corner boundary at approximately a 10% gradient.

The site contains 42 trees in total. These comprise a combination of native and exotic species including, Blue Gum High Forest (BGHF) along the frontage and within the site. This vegetation community is predominantly located within 679-681 and 683-685 Old Northern Road and has been identified in the proponent’s supporting reporting to be in poor condition. The remainder of the vegetation within the site consists of remnant canopy above a managed understorey of turf lawn and historically altered land common to an urban garden environment.

Site access is via Old Northern Road, with access driveways at Nos. 675-687, 679-681 and 683-685 Old Northern Road. A pedestrian footpath located along a portion of the Old Northern Road frontage between a pedestrian refuge outside 683-685 Old Northern Road and a bus shelter outside 675-677 Old Northern Road.

2. Local Context

Adjoining land uses include:

· 687-689 Old Northern Road (north): a single storey house to the north, operating as a veterinary hospital;

· 705-717 Old Northern Road (east): two to three storey buildings operating as a seniors housing development;

· 669 Old Northern Road (south): DA approved for the construction of a church with a seating capacity for over 400 people, which is yet to be built; and

· 671-673 Old Northern Road (south): Heritage listed dwelling (item 347).

The Round Corner shopping centre is located to the northwest of the site, across Old Northern Road within The Hills Local Government Area. It is zoned E1 Local Centre, with maximum building heights of 12-18m. An expansion to the shopping centre has been approved on vacant lands to the west of the site, at 488-494 Old Northern Road. The vacant lands are zoned E1 Local Centre and R3 Medium Density Residential and permit a maximum building height of 18m. Development consent for a mixed-use development accommodating two-storeys of retail/commercial space and two basement level carparks on the site was approved in 2021 (The Hills Shire Council DA Reference 979/2016/HB).

3. The Planning Proposal

Through the assessment and initial exhibition process, Council officers identified matters regarding bulk and scale that should be addressed prior to progression of the proposal to DPHI for Gateway determination. These related to the uncertainty regarding the proposed HLEP 2013 amendment to allow for a height of building control of 15m across the site.

The proponent was requested to revise the proposed HLEP 2013 amendment to be an Additional Local Provision with specific height and density controls. The controls should be limited to those required to achieve the built form outcomes described in the supporting Urban Design Report to provide more certainty for Council and the community.

The Planning Proposal attached to this report now contains a proposed amendment to the Hornsby Local Environmental Plan 2013 to include a new Part 6 Additional Local Provision to:

· Permit a health services facility on the site;

· Enable delivery of the concept design’s built form specifying a ‘Reduced Level’ height control that would restrict a future development to result in no more than a two storey development to Old Northern Road; and

· Specify a maximum floor space ratio (FSR) of 1.2:1, allowing for a floorspace of approximately 6,300m².

A Reduced Level (RL) is a height measurement that shows how high a point is compared to a reference point. This establishes a height plane that does not change if ground level on a site rises or falls. In this case, an RL would be beneficial as it would establish a uniform height across the site that would allow for a two-storey frontage to Old Northern Road, where there is the highest sensitivity to views and character (and where the ground level is the highest). Where the land slopes down at the rear, the RL measurement (height plane) would stay at the same level, meaning a building could include more lower floors where there is less impact.

The Planning Proposal now proposes a maximum height across the site within an RL of 220 to 222m (equivalent to approximately 14m to 15m in height). It is proposed that the precise level would be determined through the post-Gateway process and reported to Council prior to public exhibition.

The concept design includes the following uses:

· Health services facility including:

o retail uses (café) and pharmacy;

o consulting suites;

o day hospital, imaging, laboratory or diagnostics; and

o lobby areas;

· Landscaped courtyard;

· Servicing, loading and ambulance bay;

· Three levels of basement car parking accommodating 168 spaces; and

· Vehicular ingress and egress to Old Northern Road.

The concept plans show a single entry and exit point to the site from Old Northern Road at the northern frontage of the site. This would provide access to an internal road with drop off, loading area and car parking.

A Letter of Offer to enter a Planning Agreement was submitted alongside the Planning Proposal. The initial offer suggested that the Planning Agreement would result in public domain and pedestrian accessibility works. These included provision of a footpath at the front of the site to Kenthurst Road, potential road works at the front of the site, a refurbished pedestrian refuge, relocated bus shelter and street planting. An estimated value of the works was not provided and the offer was based on waiving future development contributions associated with the health services facility land use.

Since lodgement, Council requested clarification regarding the value of the initial offer and the exclusion of future development contributions. An updated Offer Letter (attached to this report) has subsequently been received which would provide a monetary contribution of $1.1 million to Council to be used for community benefits such as improvements to Council infrastructure including roads and footpaths. The offer has not been formally considered and would be subject to further negotiations.

Certain aspects of the Letter of Offer are discussed in this report based on initial review. The terms and contents of a resulting Planning Agreement would be negotiated following a Council resolution regarding the Planning Proposal. Subject to Gateway Determination being received, a report would be prepared for Council’s consideration presenting a draft Planning Agreement exhibition concurrently with the Planning Proposal.

Supporting documentation and technical studies submitted in support of the proposal (and available to view on Council’s Your Say website) are listed below. These have not been updated to reflect the change in the implementation of built form controls in the amended Planning Proposal as they still relate to the same built form outcome.

Should the Planning Proposal receive a positive Gateway Determination, some reports may be required to be updated, such as the Urban Design Report and Transport Impact Assessment. These would be reported back to Council prior to the statutory public exhibition process.

· Urban Design Report – COX Architecture

· Landscape Architecture Concept Report - Taylor Brammer Landscape Architects

· Economic Impact Assessment – Atlas Urban Economics

· Statement of Heritage Impact – Weir Phillips Heritage

· Feasibility Study – Health Projects International

· Stormwater Management Plan – CHRISP Consulting

· Arboricultural Impact Assessment Report – Urban Arbor

· Flora and Fauna Assessment Report - Narla Environmental

· Acoustic Assessment - Norrebro Design

· Visual Impact Assessment – Architectus

· Transport Impact Assessment – The Transport Planning Partnership

· Survey Plan - Richard & Loftus

· Sewage Management Plan – CHRISP Consulting

· Draft Site-specific Development Control Plan - Keylan Consulting

· Stakeholder Letters of Support – Updated – Various

· Landowners’ consent

4. Strategic and Statutory Context

Relevant policies and legislation are discussed below.

Greater Sydney Region Plan - A Metropolis of Three Cities

A Metropolis of Three Cities – the Greater Sydney Region Plan (Region Plan) has been prepared by the NSW Government and provides a strategic framework to guide land use planning decisions to 2056. It is the current region plan for Greater Sydney, noting that the draft Sydney Plan has been placed on public exhibition, and is discussed in a following section.

The Region Plan sets broad priorities and actions to accommodate Sydney’s future population growth and sets key targets such as housing supply, infrastructure planning, liveability, sustainability and productivity. The Region Plan outlines objectives to achieve these priorities.

The table below summarises objectives from the Region Plan that are relevant to the Planning Proposal and a consideration of the Planning Proposal’s consistency.

Objectives/ Strategies	Response
O7: Communities are healthy, resilient and socially connected Strategy 7.1: Deliver healthy, safe and inclusive people of all ages and abilities that support active, resilient and socially connected communities by… co-locating schools, health, aged care, sporting and cultural facilities	The site is approximately 100-200m walking distance to the existing Round Corner Town Centre. The centre is zoned to expand into the vacant lots opposite the site. The site is also adjacent to an existing seniors housing development. The co-location of the proposed land uses, in connection to the Round Corner Centre, would encourage healthy, resilient and socially connected local communities. The proposal is therefore broadly consistent with the objective and strategy
O12: Great places that bring people together Strategy 12.1: Using a place-based and collaborative approach throughout planning, design, development and management, deliver great places by… providing fine grain urban form, diverse land use mix, high amenity and walkability in and within a 10-minute walk of centres	The site is opposite a planned expansion to the Round Corner Town Centre, with existing pedestrian connectivity via a pedestrian refuge and a signalised intersection. Immediately surrounding rurally zoned lands are a mix of land uses which are broadly more urbanised in nature, including seniors housing, low density residential, commercial and an approved church (approx. 400 seats) on an adjoining site. The proposed land use could be considered as an expansion of the adjoining Round Corner Town Centre, with the services being within a short walking distance of the existing centre. This outcome aligns with the strategy of delivering diverse land uses and promoting walkability within a 10-minute walk of centres. As such, the Planning Proposal is consistent with the objective.
O29: Environmental, social and economic values in rural areas are protected and enhanced Strategy 29.1: Maintain or enhance the values of the Metropolitan Rural Area using a place-based approach to deliver targeted environmental, social and economic outcomes Strategy 29.2: Limit urban development to within the Urban Area, except for the investigation areas at Horsley Park, Orchard Hills and east of The Northern Road, Luddenham.	The site is predominately zoned RU2 Rural Landscape and is mapped within the Metropolitan Rural Area. The site is not within an investigation area. The site contains dwellings, with an average lot size of under 2,000m². The site and the surrounding lands include townhouses, seniors living and an approved 400 seat church. Importantly, the Region Plan allows for place-based planning that enhances the economic values of rural lands, where there are no adverse impacts on the amenity of the local area and development provides incentives to maintain and enhance economic values. It specifically excludes rural-residential development as an economic value. The Planning Proposal includes three fragmented residential land properties, with one of those being added since the 2022 Planning Proposal was considered. The Planning Proposal would result in a transition away toward a use that would deliver greater social and economic value to the area. The Planning Proposal is supported by an Urban Design Report and Visual Impact Assessment. As shown in those reports, the proposed health services facility would generally be consistent with the larger and more urban built form outcomes that exist or have been approved on surrounding lands. Council’s Rural Lands Study includes an analysis of the different types of rural landscape areas across the Shire, with principles for their management. The site is located on the northern periphery of the Georges Creek landscape area, which is described as having a wide variety of land uses, including urban services, retirement living and rural lifestyle properties. It identifies that there are mixed uses along Old Northern Road and New Line Road, with rural land uses down smaller local roads. As such, redevelopment of the site to a health services facility land use would align with the described mixed use character of the area in immediate proximity to the Round Corner centre and would not result in an outcome that is inconsistent with the objective and strategies.

Objectives/ Strategies

Response

O7: Communities are healthy, resilient and socially connected

Strategy 7.1: Deliver healthy, safe and inclusive people of all ages and abilities that support active, resilient and socially connected communities by…

co-locating schools, health, aged care, sporting and cultural facilities

The site is approximately 100-200m walking distance to the existing Round Corner Town Centre. The centre is zoned to expand into the vacant lots opposite the site. The site is also adjacent to an existing seniors housing development.

The co-location of the proposed land uses, in connection to the Round Corner Centre, would encourage healthy, resilient and socially connected local communities.

The proposal is therefore broadly consistent with the objective and strategy

O12: Great places that bring people together

Strategy 12.1: Using a place-based and collaborative approach throughout planning, design, development and management, deliver great places by…

providing fine grain urban form, diverse land use mix, high amenity and walkability in and within a 10-minute walk of centres

The site is opposite a planned expansion to the Round Corner Town Centre, with existing pedestrian connectivity via a pedestrian refuge and a signalised intersection.

Immediately surrounding rurally zoned lands are a mix of land uses which are broadly more urbanised in nature, including seniors housing, low density residential, commercial and an approved church (approx. 400 seats) on an adjoining site.

The proposed land use could be considered as an expansion of the adjoining Round Corner Town Centre, with the services being within a short walking distance of the existing centre. This outcome aligns with the strategy of delivering diverse land uses and promoting walkability within a 10-minute walk of centres. As such, the Planning Proposal is consistent with the objective.

O29: Environmental, social and economic values in rural areas are protected and enhanced

Strategy 29.1: Maintain or enhance the values of the Metropolitan Rural Area using a place-based approach to deliver targeted environmental, social and economic outcomes

Strategy 29.2: Limit urban development to within the Urban Area, except for the investigation areas at Horsley Park, Orchard Hills and east of The Northern Road, Luddenham.

The site is predominately zoned RU2 Rural Landscape and is mapped within the Metropolitan Rural Area. The site is not within an investigation area.

The site contains dwellings, with an average lot size of under 2,000m². The site and the surrounding lands include townhouses, seniors living and an approved 400 seat church.

Importantly, the Region Plan allows for place-based planning that enhances the economic values of rural lands, where there are no adverse impacts on the amenity of the local area and development provides incentives to maintain and enhance economic values. It specifically excludes rural-residential development as an economic value.

The Planning Proposal includes three fragmented residential land properties, with one of those being added since the 2022 Planning Proposal was considered. The Planning Proposal would result in a transition away toward a use that would deliver greater social and economic value to the area.

The Planning Proposal is supported by an Urban Design Report and Visual Impact Assessment. As shown in those reports, the proposed health services facility would generally be consistent with the larger and more urban built form outcomes that exist or have been approved on surrounding lands.

Council’s Rural Lands Study includes an analysis of the different types of rural landscape areas across the Shire, with principles for their management. The site is located on the northern periphery of the Georges Creek landscape area, which is described as having a wide variety of land uses, including urban services, retirement living and rural lifestyle properties. It identifies that there are mixed uses along Old Northern Road and New Line Road, with rural land uses down smaller local roads.

As such, redevelopment of the site to a health services facility land use would align with the described mixed use character of the area in immediate proximity to the Round Corner centre and would not result in an outcome that is inconsistent with the objective and strategies.

North District Plan

The North District Plan is a guide for implementing the strategic objectives and directions outlined in the Greater Sydney Region Plan at a District level and is a bridge between regional and local planning.

The table below summarises these Planning Priorities and subsequent Actions identified in the North District Plan relevant to the Planning Proposal.

Planning Priority/Actions	Response
N9 Growing and investing in health and education precincts Action 29. Facilitate health and education precincts that: a. create the conditions for the continued co-location of health and education facilities, and services to support the precinct and growth of the precincts N10: Growing investment, business opportunities and jobs in strategic centres Action 43. Strengthen Hornsby through approaches that: (in part): e. Support health related land uses and infrastructure around Hornsby-Ku-ring-gai Hospital	Council’s Employment Land Study supports the direction to create a health and social services precinct in and around the Hornsby Ku-ring-gai Hospital, rather than isolated sites. The Planning Proposal would allow for a health services facility in Dural. This would result in health related land uses being established further away from the Hornsby Ku-ring-gai Hospital precinct. The precinct is approximately 15km driving distance from the site. The proponent has supplied economic and feasibility reports with the Planning Proposal. These have considered the demand for the facility in the local catchment. They identify that there are no day surgeries or hospitals within a 5km radius or to the north of Dural. The feasibility modelling indicates that there is currently an undersupply of 109 acute inpatient day care/day procedure places, which is anticipated to increase to 552 places by 2045. It also projects ongoing additional demand for four GP consultation rooms per year to cater for residents located within a 15 minute drive. The Planning Proposal notes that the NSW Health report Future Health: Guiding the Next Decade of Care in NSW 2022–2032 Strategy advocates for patients to be treated closer to home and outside of the hospital environment where suitable. It also calls for improved access to health facilities for rural populations. The NSW Health report is a relevant State policy that provides additional context for health services planning in the State. Given the location and type of facility the Planning Proposal would permit, it has the potential to help achieve the objectives of the report. The Planning Priorities and Council’s Employment Lands Study support the development of the Hornsby Ku-ring-gai Hospital and the surrounding precinct. The objective does not exclude the potential for smaller scale health service facilities to be developed in centres where the land use is permissible or introducing permissibility where there is demonstrated demand. Given these considerations, there is some potential for the Planning Proposal to draw demand from the Hornsby-Ku-ring-gai Hospital precinct. However, economic reporting provided by the proponent suggests that this would not be a significant impact. Further input and clarification may be sought from NSW Health through a Post-Gateway exhibition.
N18: Better managing rural areas Action 69: Maintain or enhance the values of the Metropolitan Rural Area using place-based planning to deliver targeted environmental, social and economic outcomes. Action 70: Limit Urban Development to within the Urban Area.	The site is located within land mapped as the Metropolitan Rural Area (MRA). It is not located within an urban investigation area. Council’s Rural Lands Study addresses planning priorities and actions through a place-based planning approach that identifies the character of the Georges Creek Landscape Area. This is discussed further in the Rural Lands Study section below. In principle, transition of rural lands to urbanised land uses is not supported. If any transition is proposed, it should be supported by place-based planning, similar to that undertaken to support Council’s Rural Lands Study (RLS), to provide context for the change on the site and the surrounding area. The Planning Proposal is supported by Urban Design and Visual Impact reporting that show that there are no current agricultural uses on the site or adjacent areas, and that the proposal is compatible with the surrounding land uses. The Planning Proposal includes three fragmented residential land properties, with one of those being added since the 2022 Planning Proposal was considered. The inclusion of this site means that the Planning Proposal would not result in an isolated rural residential lot. This would better align with the character established by the surrounding and adjacent Seniors Living, approved church and the planned development of the Round Corner centre opposite the site. It would also be broadly consistent with the RLS’s character statement for the Georges Creek landscape area, which acknowledges the presence of economic land uses along main roads.

Planning Priority/Actions

Response

N9 Growing and investing in health and education precincts

Action 29. Facilitate health and education precincts that:

a. create the conditions for the continued co-location of health and education facilities, and services to support the precinct and growth of the precincts

N10: Growing investment, business opportunities and jobs in strategic centres

Action 43. Strengthen Hornsby through approaches that: (in part):

e. Support health related land uses and infrastructure around Hornsby-Ku-ring-gai Hospital

Council’s Employment Land Study supports the direction to create a health and social services precinct in and around the Hornsby Ku-ring-gai Hospital, rather than isolated sites.

The Planning Proposal would allow for a health services facility in Dural. This would result in health related land uses being established further away from the Hornsby Ku-ring-gai Hospital precinct. The precinct is approximately 15km driving distance from the site.

The proponent has supplied economic and feasibility reports with the Planning Proposal. These have considered the demand for the facility in the local catchment. They identify that there are no day surgeries or hospitals within a 5km radius or to the north of Dural.

The feasibility modelling indicates that there is currently an undersupply of 109 acute inpatient day care/day procedure places, which is anticipated to increase to 552 places by 2045. It also projects ongoing additional demand for four GP consultation rooms per year to cater for residents located within a 15 minute drive.

The Planning Proposal notes that the NSW Health report Future Health: Guiding the Next Decade of Care in NSW 2022–2032 Strategy advocates for patients to be treated closer to home and outside of the hospital environment where suitable. It also calls for improved access to health facilities for rural populations.

The NSW Health report is a relevant State policy that provides additional context for health services planning in the State. Given the location and type of facility the Planning Proposal would permit, it has the potential to help achieve the objectives of the report.

The Planning Priorities and Council’s Employment Lands Study support the development of the Hornsby Ku-ring-gai Hospital and the surrounding precinct. The objective does not exclude the potential for smaller scale health service facilities to be developed in centres where the land use is permissible or introducing permissibility where there is demonstrated demand.

Given these considerations, there is some potential for the Planning Proposal to draw demand from the Hornsby-Ku-ring-gai Hospital precinct. However, economic reporting provided by the proponent suggests that this would not be a significant impact. Further input and clarification may be sought from NSW Health through a Post-Gateway exhibition.

N18: Better managing rural areas

Action 69: Maintain or enhance the values of the Metropolitan Rural Area using place-based planning to deliver targeted environmental, social and economic outcomes.

Action 70: Limit Urban Development to within the Urban Area.

The site is located within land mapped as the Metropolitan Rural Area (MRA). It is not located within an urban investigation area.

Council’s Rural Lands Study addresses planning priorities and actions through a place-based planning approach that identifies the character of the Georges Creek Landscape Area. This is discussed further in the Rural Lands Study section below.

In principle, transition of rural lands to urbanised land uses is not supported. If any transition is proposed, it should be supported by place-based planning, similar to that undertaken to support Council’s Rural Lands Study (RLS), to provide context for the change on the site and the surrounding area.

The Planning Proposal is supported by Urban Design and Visual Impact reporting that show that there are no current agricultural uses on the site or adjacent areas, and that the proposal is compatible with the surrounding land uses.

The Planning Proposal includes three fragmented residential land properties, with one of those being added since the 2022 Planning Proposal was considered. The inclusion of this site means that the Planning Proposal would not result in an isolated rural residential lot. This would better align with the character established by the surrounding and adjacent Seniors Living, approved church and the planned development of the Round Corner centre opposite the site. It would also be broadly consistent with the RLS’s character statement for the Georges Creek landscape area, which acknowledges the presence of economic land uses along main roads.

Draft Sydney Plan

The draft Sydney Plan was placed on public exhibition on 10 December 2025. Once finalised, this plan will replace the current Region Plan.

In accordance with DPHI’s Local Environmental Plan Making Guideline (August 2023) draft regional plans are a matter for consideration in determining Planning Proposals. The proponent was provided an opportunity to provide an addendum letter considering the draft Sydney Plan (December 2025), in relation to the Planning Proposal.

The proponent’s addendum letter demonstrates that the proposal is consistent with the key strategic priorities, objectives and outcomes in the draft Sydney Plan.

Urban Footprint Policy Guidance

The Draft Sydney Plan’s Response 11: Manage land uses beyond urban footprint identifies the existing MRA set out in the 2018 Greater Sydney Region Plan. It states that:

The Department will finalise the draft urban footprint map and policy in collaboration with councils and relevant NSW Government agencies. Until this occurs, the Metropolitan Urban Area identified in the 2018 Greater Sydney Region Plan applies as the urban footprint.

Additionally, the Draft Sydney Plan recognises that some rural zoned lands could transition to alternative productive use if existing uses are no longer viable.

Most zoned rural land is used for productive rural purposes and should be protected from fragmentation and urban encroachment. Some rural lands could transition to other productive uses if existing uses are no longer viable, and if land can be serviced and development ready. Any future land uses must consider required infrastructure investments and compatibility with existing settings and land uses.

The Draft Sydney Plan sets out NSW Government and local government actions for Response 11. It includes a requirement for local governments to review the interface between the urban and rural lands to inform the urban footprint. The Draft Sydney Plan introduces strategic guidance that indicates certain rural lands may transition to other productive uses.

The site accommodates rural residential land uses on fragmented lots, with a low likelihood of consolidation and delivery of agricultural land uses on the site or surrounding sites. As such, the Draft Sydney Plan may present an option for transition to another economic land use.

The site is serviced by utilities and the Planning Proposal is supported by a Sewage Plan. The Sewage Plan shows how the site may be connected to existing sewer network near Round Corner, approximately 100m north of the site. The Planning Proposal was provided to Sydney Water for review, which identified capacity in the network and that connection would be subject to a feasibility application. As such, the Planning Proposal can be serviced by infrastructure, meeting the requirement of the Draft Sydney Plan.

Section 9.1 Local Planning Directions

Section 9.1 of the EP&A Act allows the Minister for Planning and Public Spaces (the Minister) to provide direction to Council in relation to the preparation of draft local environmental plans.

The Planning Proposal has been considered against the following Directions relevant to the proposal.

Direction 1.1: Implementation of Regional Plans

The objective of the direction is to give legal effect to the vision, land use strategy, goals, directions and actions contained in Regional Plans. The direction requires a planning proposal to be consistent with a Regional Plan released by the Minister for Planning. A Planning Proposal may be inconsistent if that inconsistency is of minor significance and if it achieves the overall intent of the Region Plan and does not undermine the achievement of the Region Plan’s vision, land use strategy, goals, directions or actions.

As discussed above, the Planning Proposal is largely consistent with the Region and District Plans, particularly regarding delivery of an economic and social facility adjacent to an existing centre with access to rural areas.

Regional Plans support the development of the Hornsby Ku-ring-gai Hospital Precinct. The Planning Proposal is supported by economic and feasibility studies that demonstrate local demand for the health services facility land and that delivery of the facility would have minimal impacts on the precinct.

While the Planning Proposal introduces an urban land use within the Metropolitan Rural Area, the Planning Proposal is considered acceptable, as it is generally in consistent with the broader strategic planning framework of the Greater Sydney Plan. The identified variations in the proposal do not undermine the overall intent of the Plan and therefore the proposal is not inconsistent with this direction.

Direction 1.4: Site Specific Provisions

The objective of the direction is to discourage unnecessarily restrictive site-specific planning controls. The direction prescribes that a planning proposal must either:

a) Allow that land use to be carried out in the zone the land is situated on, or

b) Rezone the site to an existing zone already in the environmental planning instrument that allows that land use without imposing any development standards or requirements in addition to those already contained in the zone

c) Allow that land use on the relevant land without imposing any development standards or requirements in addition to those already contained in the principal environmental planning instrument being amended.

The Planning Proposal seeks to allow for a health services facility on the site with no change to the underlying RU2 Rural Landscape zone. The amended Planning Proposal incorporates built form controls regarding height and density. Together, these would enable development of the proposed land use as described in the accompanying concept designs.

Land use and height controls are development standards that are consistent with those contained HLEP 2013. As such, application of those controls to the site would not be inconsistent with this direction.

A site specific DCP has also been submitted, which is proposed to be exhibited and adopted alongside amendments to HLEP 2013. The site specific DCP contains provisions to give effect to the concept plan. A future DCP amendment would be separate to an amendment to HLEP 2013 and would not be inconsistent with the direction.

Direction 3.2: Heritage Conservation

The objective of the direction is to conserve items, areas, objects and places of environmental heritage significance and indigenous heritage significance. The direction requires planning proposals contain provisions that facilitate the conservation of items of heritage significance to the area.

The site is not listed as a heritage item and is not located within a Heritage Conservation Area under Schedule 5 of HLEP 2013.

The site is in proximity to the following heritage items:

· Heritage item No. 347 - House at Nos. 671-673 Old Northern Road, Dural

· Heritage item No. 488 - Roadside Trees, Old Northern Road

· Archaeological item No. A12 (The Hills Shire LEP 2019) - Old Northern Road, between Dural and Wisemans Ferry

A review of the proponent’s technical reports and description of proposed changes to the site indicates that the Planning Proposal would have no direct impact on the significant aspects of the adjacent heritage or archaeological items.

The Planning Proposal is consistent with this direction.

Direction 4.3: Planning for Bushfire Protection

The objective of the direction is to protect life, property and the environment from bush fire hazards, by discouraging the establishment of incompatible land uses and encouraging sound management of bushfire prone areas. The direction applies to planning proposals that will affect or are in proximity to bushfire prone land.

The site is not identified as bushfire prone land. It is approximately 100m away from land mapped as being bushfire prone. Should a positive Gateway determination be issued, the NSW Rural Fires Service may be required to be consulted prior to undertaking community consultation to determine whether the proposal is acceptable with respect to bushfire risk and whether further information, such as a bushfire risk assessment is required.

Direction 4.4: Remediation of Contaminated Land

The objective of the direction is to reduce the risk of harm to human health and the environment by ensuring that contamination and remediation are considered. The direction prescribes that a change of use/zoning cannot be made unless the planning proposal authority has considered whether the land is contaminated and any suitable mitigation measures if required.

The site is in a rural zone and appears to have been previously used for agriculture. The Managing Land Contamination: Planning Guidelines – SEPP 55 Remediation of Land indicate that agricultural activities may result in land contamination.

The Planning Proposal indicates that the previous proposal was accompanied by a Preliminary Site Investigation which identified that the has potential for contamination due to past and present site activities, and that future testing should be undertaken, as part of a future development application. The report relates to Lot 1 DP 120004 and Lot 3 DP 395437. The report suggests that the site is suitable for the proposed use, subject to the recommendations from the report’s findings.

As noted above, the site now includes 675-677 Old Northern Road (Lot 2 DP 393694). As such, the Preliminary Site Investigation does not consider the entire site.

Should a Gateway determination be issued, the proponent should be required to update the Preliminary Site Investigation incorporating the new lot to be fully consistent with the direction, prior to public exhibition.

Should the Planning Proposal result in an amendment to HLEP 2013, a future development application would be accompanied by a Detailed Site Investigation, with a Remedial Action Plan if remediation works are required.

Direction 5.1: Integrating Land Use and Transport

The objective of the direction is to ensure that urban structures, building forms, land use locations, development designs, subdivisions and street layouts achieve planning objectives regarding improving access, increasing transport choice, reducing travel demand and distance travelled and supporting public transport operation.

The objective requires planning proposals to be consistent with the aims, objectives and principles of:

· Improving Transport Choice – Guidelines for planning and development (DUAP 2001), and

· The Right Place for Business and Services – Planning Policy (DUAP 2001).

Planning Proposals should not result in out of centre development that would encourage and be largely reliant on private vehicle usage. The use may encourage private vehicle usage to access the services. The impact of this is offset by being within a walkable catchment of the Round Corner Town Centre which is serviced by existing Sydney Bus lines. The proximity of the site to the centre and public transport may encourage active and public transport use resulting in reduced travel demand. Development of a facility within proximity to the Round Corner Town Centre also has the potential to result in the combination of trips.

As demonstrated by the proponent’s economic and feasibility reporting, there is local demand for health services facilities, meaning that development on the site could reduce the distance travelled to regional level health precincts. As such, while the land use is likely to increase local traffic generation, it could also mitigate regional traffic to larger facilities that are further away.

On balance, the Planning Proposal would be consistent with the Direction.

Direction 9.1: Rural Zones

The objective of the direction is to protect the agricultural production value of rural land. The direction prescribes that a planning proposal does not rezone land from a rural to a residential, business, industrial, village or tourist zone and does not contain provisions that will increase the permissible density of land within a rural zone (other than land within an existing town or village).

The Planning Proposal seeks to permit the health service facility land use on a rural zoned lot with increased height controls for that land use. It does not seek to rezone the site to an inconsistent zone.

The proposed use does not remove any opportunity for development in accordance with the permitted uses under the RU2 Rural Landscape zone. However, the additional permitted use would have a similar impact to rezoning, as it would allow for an urban use and increase the potential density of development on the site. As such, it would reduce the likelihood of productive agricultural and rural land uses on the site in the future.

The Planning Proposal is supported by an Urban Design Report and Visual Impact Assessment that considers the existing land uses on the site and the surrounding context. The site in its current form does not support rural uses.

It also shows that increased height and scale of development on the site would be consistent with the nearby Round Corner centre and immediately surrounding existing and approved more urbanised land uses. Further, given the fragmented residential land uses on the site and surrounding urbanised land uses in the immediate vicinity, it is unlikely the site would be capable of supporting agricultural or other productive rural land uses.

As such, the proposed increase in density on the site and proposed land use has the potential to be inconsistent with the direction. However, the immediately surrounding urbanised land uses, isolation of the site from rural land uses and fragmentation of the site provides suitable justification for the inconsistency.

Hornsby Local Strategic Planning Statement

Hornsby’s Local Strategic Planning Statement (LSPS) sets out a 20-year vision for land use in Hornsby Shire, identifying the special character and community values that are to be preserved as well as how Council will manage growth and change.

Under the theme of ‘Productivity’, the LPSP identifies that Council will investigate options to enhance the provision of the local health and education services and ensure that any new health and education facilities and services are delivered alongside any expected growth. Regarding health facilities, the LSPS states:

“Locating health and other social infrastructure within the Hornsby Town Centre has a number of advantages including proximity to larger health providers, high accessibility for people of all ages and abilities and clustering services that cater to people’s needs at different stages of life.”

LSPS recommends that the health services facilities are to be developed around the Hornsby Ku-ring-gai Hospital, to ensure that appropriate access is provided in well serviced areas of the Hornsby Shire. This does not necessarily exclude the potential for smaller scale health service facilities to be developed in centres where the land use is permissible or introducing permissibility where there is demonstrated demand.

The Planning Proposal is accompanied by an Economic Impact Assessment and a Demand Analysis for Health Services. Both reports find that the proposed use responds to an unmet need for acute and non-acute care, operating theatres, outpatient care and medical imaging demand and responds to the rapid acceleration of the ageing population within the catchment area well beyond the State average.

Given this additional context regarding the catchment, development of a health services facility on the site would not be inconsistent with the LSPS.

The LSPS also outlines priorities that would guide the preparation and finalisation of supporting strategic studies. Relevant priorities are listed below:

· Priority SP8: Maintaining and enhancing the environmental, economic and scenic values of the

Metropolitan Rural Areas of Hornsby.

· Priority PP3: Focussing economic development in and around existing centres and employment precincts in the Shire, with a key focus on the strategic centre.

· Priority PP5: Prioritising local employment opportunities and improvements to services, amenities, and infrastructure to support the future population.

These priorities resulted in the finalisation of Council’s Hornsby Rural Lands Study (SP8) and Employment Lands Study (PP3 and PP5). The relevant recommendations and actions of those studies, and the Planning Proposal’s alignment, are discussed in the sections below.

Hornsby Rural Lands Strategy 2022

The Hornsby Rural Lands Strategy (RLS) has been prepared to set the strategic direction for the rural lands within Hornsby Shire. It addresses actions in the North District Plan to use place-based planning to maintain the values of the area and deliver targeted environmental, social and environmental outcomes.

The place-based planning approach involves the identification of landscape areas and a character statement for each. A landscape area is a place with shared characteristics such as landform, vegetation, land uses and other unique qualities. The place-based approach enables the Study to provide recommendations specific to each landscape area, having regard to the unique landscape qualities and opportunities.

The RLS has identified 13 landscape areas, and the site is located within the Georges Creek landscape area. The area comprises a variety of land uses within the suburbs of Dural and Glenhaven, bounded by Old Northern Road, New Line Road and Hastings Road. The character statement for Georges Creek included in the Rural Lands Strategy is:

‘Georges Creek winds through this landscape area and provides a densely treed backdrop which lends a green and rural feel to the area. In this location, remnant native vegetation is tall, and the dominant vegetation communities are Blackbutt Gully Forest, Turpentine Ironbark Forest and Blue Gum High Forest.

There is a wide variety of land uses in this landscape area, including urban services (garden centre, auto repairs), retirement living, and rural lifestyle properties. These activities are clustered along Old Northern Road and New Line Road, across from the South Dural Service Centre. The feel along main roads is one of mixed uses, while travelling down smaller local roads gives a sense of arrival in a rural lifestyle area.

The landscape area abuts nearby urban areas of Glenhaven and Castle Hill. The open space and scattered vegetation, marks a transition to Hornsby Shire's rural area.’

The RLS recommends the Georges Creek landscape area avoid further fragmentation of productive agricultural lands and preserve non-urban breaks between villages by avoiding ribbon development on major roads.

The assessment of the previous Planning Proposal recommended that the health services facility not be in the Georges Creek landscape area, as it would conflict with the RLS’s preference for supporting agricultural activities.

The revised Planning Proposal has incorporated an additional fragmented site, forming a discreet extension of the urban area immediately surrounding Round Corner. The agricultural potential of these sites is very limited. Opportunities are further constrained when considering immediately adjacent uses including a veterinary clinic immediately to the north, a large seniors housing development to the north east, a heritage listed house and an approved church to the south.

Further, Round Corner’s expansion is planned opposite the site on Old Northern Road on land currently zoned at E1 Local Centre with maximum heights of 14m of 18m.

While the proposed land use is inconsistent with the Georges Creek landscape area’s values, it is appropriate to assess it in the context of the existing and emerging land uses on the periphery of the landscape area. On balance, the Planning Proposal’s introduction of an urban use on its periphery would have a negligible effect on the landscape area in this context.

Hornsby Employment Lands Study 2021

Council’s Employment Lands Study (ELS) provides a strategic framework to facilitate and accommodate future employment growth within Hornsby Shire in the context of the North District Plan. The ELS was endorsed by Council in May 2021.

The ELS identifies health care and social services as a standout growth industry and is one of the largest contributors to Hornsby Shire’s economy, with a concentration of this land use type focused on key employment centres including Hornsby and Asquith. The ELS also identifies that Hornsby Shire has experienced an ageing of the population. According to Forecast .id, the number of persons aged 65 years and older within Hornsby in 2021 was approximately 27,000 people (or 18 per cent of the population). This is anticipated to increase in 2046 to approximately 42,000 people (or 23 per cent of the population), an increase of approximately 15,000 people. This would increase the demand for health-related services across the Shire.

The ELS includes several strategies related to employment lands. The following are most relevant to the Planning Proposal:

· Strategy 4.2: Support the growth of agriculture, manufacturing and tourism;

· Strategy 4.4: Partnerships with the health and social services industry; and

· Strategy 5.1: Road networks are appropriate to accommodate growth.

The ELS recommends protecting and supporting the productivity of rural lands, including undertaking meaningful engagement with local producers and industries to determine pathways to further support the productivity of rural lands as part of the RLS and Economic Development and Tourism Strategy. The Planning Proposal to permit a health services facility on a rural zoned lot would introduce a large-scale commercial operation onto rural zoned land, which would typically be inconsistent with Council’s strategic approach to rural lands and economic development.

As discussed above, the Planning Proposal is supported by an Urban Design Report and Visual Impact Assessment that considers the existing land uses on the site and the surrounding context. The site in its current form does not support rural uses, and it is unlikely that the site would be able to transition to another rural land use. Inclusion of three fragmented residential properties into the Planning Proposal means that there would not be an isolated site. Given this urban context, delivery of a health services facility within a two-storey built form would not be inconsistent with the ELS directions regarding rural land uses.

The ELS recommends focusing health and social service industries in, and around, the current Hornsby Hospital site, to encourage a concentration of health-related land uses that are accessible and well serviced. However, it also acknowledges that expansion opportunities around the hospital are limited due to surrounding residential land uses.

The Planning Proposal intends to provide a diversified health facility on rural zoned lands within Dural/Round Corner area. The Economic Impact Assessment provided with the Planning Proposal suggests that the demand for specialist health services exceeds what is available locally. As a result, the proposal would capture visitors from outside the immediate catchment, including those currently travelling more than 10 km to access similar services.

The ELS recommends protecting and supporting the productivity of rural lands, including undertaking meaningful engagement with local producers and industries to determine pathways to further support the productivity of rural lands. However, given the existing land uses on these sites and immediately surrounding area, the lands are unlikely to be used for productive agricultural or agritourism land uses.

Therefore, the Planning Proposal is unlikely to result in an outcome that is directly inconsistent with the ELS.

Economic Development and Tourism Strategy 2021-2026

The Economic Development and Tourism Strategy 2021-2026 has been prepared to provide Hornsby Shire Council, in its role as a promoter and a facilitator of economic development, with a well-articulated plan of action to support the vibrancy, diversity and sustainability of the Hornsby Shire. The Strategy was endorsed by Council in May 2021.

As highlighted in the Strategy, Hornsby Shire currently hosts approximately 9000 jobs in Health Care and Social Assistance sector, provided by over 1,000 businesses. The local employment capacity in the Health Care and Social Assistance sector is approximately 0.8 – which suggests that the new jobs created by the development would benefit local people working in the sector who are currently travelling outside of the Shire to work. The industry added value of Health Care and Social Assistance is more than $600 million per annum - which is 12% of total industry added value – highlighting the importance of the sector to the local economy.

The Strategy advocates for intensification of the Hornsby Ku-ring-gai Health Precinct, with the potential establishment of a university campus or broader education component.

The proposal seeks to establish a health services facility which may build on the economic strengths of the Health Care and Social Assistance sector within Hornsby Shire. Development of large scale health services facilities outside of the Hornsby-Ku-ring-gai precinct would be inconsistent with the Strategy. However, as described in the economic and feasibility reporting provided with the Planning Proposal, there is significant local demand for the facility as described and it would be unlikely to impact the overall demand for regional health facilities.

Hornsby Local Environmental Plan 2013

The proposal does not propose to change the zoning of the site from RU2 Rural Landscape or SP2 Infrastructure – Road.

The objectives of the RU2 Rural Landscape zone are:

· To encourage sustainable primary industry production by maintaining and enhancing the natural resource base.

· To maintain the rural landscape character of the land.

· To provide for a range of compatible land uses, including extensive agriculture.

· To encourage land uses that support primary industry, including low-scale and low-intensity tourist and visitor accommodation and the provision of farm produce direct to the public.

· To ensure that development does not unreasonably increase the demand for public infrastructure, services or facilities.

The objectives of the SP2 (Infrastructure - Road) zone are:

· To provide for infrastructure and related uses.

· To prevent development that is not compatible with or that may detract from the provision of infrastructure.

Land uses permitted in the RU2 Rural Landscape zone include, but are not limited to, aquaculture, animal boarding or training establishments, community facilities, dwelling houses, dual occupancies (attached), eco-tourist facilities, extractive industries, farm buildings, garden centres, intensive livestock agriculture, intensive plant agriculture, roadside stalls, rural industries and tourist and visitor accommodation.

The proposed health services facility land use and associated land uses are prohibited in the zone.

The definition for the health services facility land use is provided below.

health services facility means a building or place used to provide medical or other services relating to the maintenance or improvement of the health, or the restoration to health, of persons or the prevention of disease in or treatment of injury to persons, and includes any of the following –

a) a medical centre,

b) community health service facilities,

c) health consulting rooms,

d) patient transport facilities, including helipads and ambulance facilities,

e) hospital.

The definition of the hospital land use is provided below

hospital means a building or place used for the purpose of providing professional health care services (such as preventative or convalescent care, diagnosis, medical or surgical treatment, psychiatric care or care for people with disabilities, or counselling services provided by health care professionals) to people admitted as in-patients (whether or not out-patients are also cared for or treated there), and includes ancillary facilities for (or that consist of) any of the following—

a) day surgery, day procedures or health consulting rooms,

b) accommodation for nurses or other health care workers,

c) accommodation for persons receiving health care or for their visitors,

d) shops, kiosks, restaurants or cafes or take away food and drink premises,

e) patient transport facilities, including helipads, ambulance facilities and car parking,

f) educational purposes or any other health-related use,

g) research purposes (whether or not carried out by hospital staff or health care workers or for commercial purposes),

h) chapels,

i) hospices,

j) mortuaries.

The Planning Proposal describes the planned future development as a ‘23-hour hospital services encompassing specialist and allied health services’ with a mix of inpatient and outpatient facilities and ancillary supporting facilities. Services described include day surgery and operating theatres, short stay surgical beds, GP medical centre, specialist consulting suites, pathology collection and imaging and allied health services.

The health services facility land use, including the subordinate hospital land use, appropriately describe the discussed land uses and activities.

The amended Planning Proposal now includes improved height and density controls that respond to concerns raised regarding bulk and scale and would allow for facility with an FSR of up to 1.2:1 and no more than a two storey frontage to Old Northern Road. The updated controls would allow for a building envelope described in the concept designs provided with the Planning Proposal.

The specific wording of an Additional Local Provision would be finalised through the Post-Gateway and finalisation processes, in line with DPHI and Parliamentary Counsel’s Office guidelines.

Hornsby Development Control Plan 2024

The Hornsby Development Control Plan 2024 (HDCP) applies to all land within Hornsby Shire and is a comprehensive framework for the development of land. The HDCP aims to outline procedures, processes and responsibilities to ensure that development is consistent with Council’s vision of maintaining an environment which is sustainable and liveable. Future development applications would be considered in the context of the provisions of the HDCP.

To support progression of the Planning Proposal, the proponent has prepared a site specific DCP amendment. The objectives and provisions generally seek to formalise the outcomes of the concept design, such as:

· Built form, height and design;

· Setbacks;

· Privacy;

· Design details;

· Security and crime prevention;

· Sunlight access;

· Landscaping and open space and

· Vehicular access and parking.

The indicative concept designs for a future health services facility on the site are provided for clarity on the form anticipated under the new controls applicable to the site.

Adoption of a site specific DCP similar to that submitted by the proponent would give some additional certainty to development outcomes. If the Planning Proposal proceeds to Gateway determination, the site specific DCP would be considered further as a Post-Gateway matter.

5. Impacts of the Proposal

The potential impacts of the Planning Proposal are discussed below, along with the supporting documentation and technical studies submitted by the proponent in support of the proposal.

Traffic

Old Northern Road is a classified State arterial road under the jurisdiction of TfNSW.

A portion of the proposed development site (No. 679–681 Old Northern Road) along the front, north-western portion of the site is zoned SP2 Infrastructure and is identified on the HLEP 2013 Land Reservation Map for the purpose of Classified Road. The proposal does not propose for any works to occur within the SP2 Infrastructure portion of the site which would future proof any future road widening works by TfNSW.

The proponent’s Traffic Impact Assessment (TIA) has been based on traffic generation rates provided by TfNSW, consistent with the nearby Dural Medical Centre. The rates associated with this premises are high and not reflective of the type and scale of the facility considered in the concept plan. As such, the TIA modelling shows potentially significant impacts on the surrounding road network.

TfNSW was consulted as part of preliminary exhibition and have confirmed that, on reflection, the rates are likely too high and that more detailed land use based traffic generation rates should be used.

TfNSW recommends that additional traffic analysis be completed prior to finalisation of an amendment to HLEP 2013. The updated analysis should be informed by a more detailed land use analysis based on similar health services facilities. The submission states that the reporting is not required immediately, but that it is to be completed following receiving appropriate preliminary approvals (eg Gateway determination). TfNSW has reiterated that it should be consulted as part of a future exhibition period where it would consider the updated information.

Council officers concur with TfNSW’s position.

Importantly, an updated TIA may not support the revised Planning Proposal’s FSR of 1.2:1 and may only support a smaller facility. TfNSW has established a clear position that the reporting should be undertaken after preliminary approvals from Council and DPHI are secured.

It would be acceptable for a Gateway determination to include a requirement for an updated TIA be prepared, prior to public exhibition of a Planning Proposal, and for its findings to be incorporated into a revised Planning Proposal for Council’s consideration prior to public exhibition.

Parking

The proponent’s concept plan suggests that three levels of underground parking are required to support the proposed health services facility. This would include 168 car parking spaces in the basement car parking areas as part of the future development.

TfNSW and internal referrals have requested that an updated TIA confirm parking demand based on land use and linked to relevant TfNSW and Hornsby DCP parking standards.

This information should be provided as part of a Post-Gateway TIA update, should the Planning Proposal progress.

Vehicular Access

In response to the TfNSW request as part of the previous Planning Proposal for the site, the concept design proposes the construction of a left in left out (LILO) driveway at the northern frontage of the site. This would require relocation of the existing bus shelter towards the southern boundary of the site to increase the distance to the new access driveway.

Detailed refinement of the concept plan as part of a future development application would be required to consider pedestrian and vehicle movements, potential conflicts and TfNSW traffic management requirements related the to the proposed LILO driveway.

Pedestrian and Active Transport Accessibility

There is currently a footpath that connects an existing bus shelter to a pedestrian refuge along a portion of the site’s frontage. There is not a formal footpath along much of the Old Northern Road frontage or on adjoining frontages. This would limit the attractiveness and safety of active transport to and from the site via Round Corner and nearby properties.

A future development application may be required to incorporate a continuous footpath along the frontage, as well as an improved pedestrian crossing. This would be linked to safe and accessible movements associated with the land use.

Built form and scale

The proponent has submitted Indicative Architectural Plans, an Urban Design and Visual Impact Statement, and Landscape Plan providing an overview of a potential development at the site. The proponent’s indicative design includes:

· a built form ranging from two-four storeys, with a two-storey frontage to Old Northern Road

· three-below ground levels of basement carparking accommodating 168 car spaces

· a left in- left out driveway to Old Northern Road

· indicative only building setbacks for front, side and rear site boundaries

· landscaping, including a courtyard at the front of the site

Based on the submitted plans and technical reports, the concept plan appears to be capable of delivering an acceptable built form with manageable amenity impacts.

The Urban Design Report submitted with the original Planning Proposal indicates that the development will deliver a building with a two storey presentation to Old Northern Road, with additional height at the rear as the land falls away (due to the site’s natural topography).

The original Planning Proposal submitted to Council in November 2025, requested an increased height control of 15m associated with the land use. However, given the site’s natural topography, it has been identified that the proposed built form could be better controlled through the use of a reduced level (RL) height control, rather than a through a maximum building height control.

As discussed above, a Reduced Level (RL) is a height measurement that shows how high a point is compared to a reference point which is approximately sea level. This establishes a height plane that does not change if ground level on a site rises or falls. In this case, an RL would be beneficial as it would establish a uniform height across the site that would allow for a two-storey frontage to Old Northern Road, where there is the highest sensitivity to views and character. Where the land slopes away to the rear, the building could include more lower floors.

This is preferred over a maximum height of building control, which could facilitate a larger building when viewed from Old Northern Road.

Based on updated section diagrams provided by the proponent, it is envisaged that the RL control required to enable a development with a two storey presentation to Old Northern Road is between 220m to 222m. The exact RL will be finalised as part of post-Gateway concept design refinement.

A copy of an updated section diagram is attached to this report. The diagram is useful in demonstrating how the natural topography of the site lends itself to the need for a height limit over the existing height control of 10.5m and how the use of a RL can assist in controlling the built form outcomes for the site, in keeping with the two storey development as viewed from Old Northern Road illustrated in the accompanying concept plans.

The amended Planning Proposal also includes a maximum Floor Space Ratio control of 1.2:1 for the health services facility land use. This would allow for development of approximately 6,300m².

A future development application would be supported by technical reporting that reflected a refined design and alignment with the Hornsby DCP.

Heritage

The property is not listed as a heritage item or located within a Heritage Conservation Area listed under Schedule 5 of HLEP 2013.

The property is however located within the immediate vicinity to:

· Heritage item No. 347 – House at No. 671-673 Old Northern Road, Dural

· Heritage item No. 488 – Roadside Trees, Old Northern Road

· Archaeological item No. A12 (The Hills Shire LEP 2019) – Old Northern Road, between Dural and Wisemans Ferry

The proponent has submitted a Heritage Impact Statement (HIS) discussing potential impacts. The HIS states that there is nil archaeological potential on the site, given heavy disturbance associated with residential development. The HIS identifies that the Planning Proposal and proposed development design would not have significant impact on the adjacent heritage items.

Council’s Heritage officers have reviewed the HIS. The Planning Proposal is considered to meet the desired outcomes and prescriptive measures for development in the vicinity of heritage. It appropriately responds to the surrounding commercial context and to the site’s topography. Future development would also incorporate standard practice mitigation measures to address any potential heritage impacts (e.g. unexpected finds).

Natural environment

The Planning Proposal is supported by an Agricultural Impact Assessment and Flora and Fauna Assessment Report. The Planning Proposal has found that the site contains a combination of native and exotic species including, Blue Gum High Forest (BGHF) along the frontage and within the site and a portion of the site has been mapped as containing BGHF. This vegetation community predominantly located within 679-681 and 683-685 Old Northern Road and has been identified by the Planning Proposal’s supporting reports to be in poor condition.

The remainder of the vegetation within the site consists of remnant canopy above a managed understorey of turf lawn and historically altered land common to an urban garden environment, which has been extensively cleared.

The Flora and Fauna Assessment Report considers the potential impacts associated with future development on site. The concept design may result in the removal of approximately 27 trees and three groups of trees which are in the likely footprint of the future development. A total of approximately 0.4ha of vegetation would be required for removal within the site. Of the vegetation to be removed within the site, 0.34ha is of Urban Native/Exotic vegetation, and 0.06ha is representative of NSW Biodiversity Conservation (BC) Act 2016 listed Blue Gum High Forest, which are found to be in poor health. Several other trees are recommended for retention with tree sensitive designs and protection.

The Concept Urban Design and Landscape Plans indicate an intention to provide screening vegetation and deep soil areas along Old Northern Road within the front setback and along the side boundaries to mitigate privacy and overlooking impacts.

A future development application would confirm a finalised design’s impact on biodiversity element and confirm that it would not have a significant impact on matters listed under the BC Act, as well as tree canopy provision.

Land Contamination

The Planning Proposal relies on a preliminary site investigation submitted with the previous Planning Proposal on the site. The investigation considered Lot 1 DP 120004 and Lot 3 DP 395437, but not Lot 2 DP 393694, which is now part of the Planning Proposal.

The preliminary investigation discussed the potential land contamination on the site. It found potential for contamination due to past and present activities and recommended that sampling and testing should be carried out at Development Application stage to address the potential contaminants.

To meet the requirements of Ministerial Direction 4.4 and State Environmental Planning Policy (Resilience and Hazards) 2021, the preliminary site investigation should be updated sooner. This may occur as part of Post-Gateway determination reporting. It is recommended that a Gateway determination require this to be undertaken to the satisfaction of the consent authority for the Planning Proposal.

Any future Development Applications would also be required to be accompanied by a Detailed Site Investigation (DSI), and a Remedial Action Plan if the DSI identifies remediation works are required to make the site suitable for purpose.

Sewage Management

The site is located within the metropolitan rural area of Sydney and is not connected to reticulated sewerage infrastructure provided by Sydney Water.

The proponent has provided a Sewage Management Plan which outlines the strategy for connecting the proposed health services facility to existing Sydney Water infrastructure, with a new main connection.

Sydney Water’s response to the recent exhibition of the Planning Proposal has confirmed that wastewater servicing is currently unavailable to the site. However, a preliminary assessment of the relevant sewage pumping station has identified capacity to accept discharge from the development. Sydney Water has not assessed the viability of the proposed connection, and this should be informed by a proponent-led feasibility application with Sydney Water.

It is recommended that, should the Planning Proposal be referred to DPHI for a Gateway determination, Sydney Water’s advice would be included for consideration, and that further consultation with Sydney Water be undertaken as part of any future public exhibition of the Planning Proposal.

Stormwater Management

The proponent has submitted a Stormwater Management Plan which proposes that the development can be appropriately served by an onsite stormwater detentions (OSD) system designed to maintain post-development flows to pre-development conditions.

Key elements include:

· Provision of an OSD tank with a storage capacity of approximately 220m3, located along the southern lot boundary.

· The drainage easement along the rear of the site would be formalised at the development application stage under a Deed of Agreement.

The design of an on-site detention system would be required to be in accordance with Council’s Specification for On-Site Stormwater Detention and the permissible discharge rate would be restricted to the 5 year ARI storm for the pre development site conditions for all storms up to the 50 year ARI storm.

Should a Gateway Determination be issued, an agreement with the adjoining properties affected by the proposed easement would be required for consideration by Council’s engineer.

Acoustics

The site adjoins the following sensitive receivers:

· 669 Old Northern Road, Dural (Site of approved church);

· 687-689 Old Northern Road, Dural (Veterinary hospital);

· 691-693 Old Northern Road, Dural (Dwellings);

· 705-717 Old Northern Road, Dural (Seniors living facility);

· 719-729 Old Northern Road, Dural (Dwelling); and

· 3 Franlee Road, Dural (Dwelling).

The Planning Proposal would result in a health-related land use adjoining sensitive receivers. The proposed development would include retail tenancies with outdoor seating, as well as hospital services incorporating an ambulance bay.

The Planning Proposal is supported by an Acoustic Assessment that identifies the acoustic criteria stipulated in the relevant codes and guidelines. The Assessment found that the existing noise levels were generally high, and any future mechanical plant can be acoustically treated to achieve compliance. This is supported by noise monitoring at the front of the site.

A future development application would be required to be supported by an acoustic report that outlines the impacts of a finalised design and includes long term noise monitoring and specific mitigation measures as required.

Waste Management

Council’s Waste Management requirements for the proposed use identifies key considerations that will need to be addressed should the Planning Proposal receive a Gateway determination.

Given the rural context of the site, all services will need to take place onsite. Accordingly, future development would need to be designed for Heavy Rigid Vehicle waste collection vehicles entering and exiting the site in a forward direction. Appropriate waste collection design, vehicle access, and compliance with relevant waste legislation will be essential components of any future development on the site.

The proposed café identified in the concept plan would also be required to provide food organics bins to comply with the Protection of the Environment Operations Act. These requirements can be addressed in the Operational Waste Management Plan at the Development Application stage.

Public Benefits

The Planning Proposal was accompanied by a Letter of Offer outlining potential items the proponent may include in a future Planning Agreement. This offer has been the subject of early negotiations, in line with Council’s Planning Agreements Policy. Negotiations have sought to develop an updated offer that can serve as the basis for further development in parallel with Gateway and post-Gateway activities.

Following the early negotiations, the proponent has provided an updated Letter of Offer for a Planning Agreement, which is attached to this report. The Letter of Offer suggests a monetary contribution of $1.1 million to assist Council with the delivery of public benefit works in the Dural locality. The monetary contribution would be allocated to upgrades and improvements to infrastructure, streetscape, public domain amenity, active and public transport, accessibility and safety.

Input has been provided by Council’s Infrastructure Planning team, which has identified opportunities for works along Old Northern Road and in the Dural area that would improve active and public transport infrastructure, safety and amenity. As such, the proposed monetary contribution would allow Council’s delivery teams to program and prioritise works as funding was received.

Overall, the current offer would assist in the delivery of infrastructure in Council’s rural areas without risking the delivery of development contribution funding projects elsewhere in the Shire.

It is recommended that further negotiations regarding the Planning Agreement occur in parallel with Gateway and Post-Gateway activities, with a draft Planning Agreement reported to Council along with an updated Planning Proposal for consideration prior to public exhibition (should a positive Gateway determination be received).

6. Preliminary Notification

In accordance with the Hornsby Community Participation Plan, preliminary exhibition of owner initiated planning proposals is undertaken prior to consideration by Council. The notification allows for the local community and relevant agencies to provide feedback and assist Council in deciding whether to support progression of the Planning Proposal to Gateway determination.

The original Planning Proposal was placed on preliminary (non-statutory) exhibition from 2 December 2025 until 20 January 2026. The proposal was available for viewing on Council’s Your Say webpage. Letters were sent to over 650 property owners within Hornsby and The Hills Shire inviting them to comment on the Planning Proposal. Public authorities were invited to comment as part of the preliminary notification and included The Hills Shire Council, TfNSW and Sydney Water.

In response, 12 community submissions were received objecting to the proposal in its current form. Submissions were also received from TfNSW, Sydney Water and The Hills Shire Council. The issues are summarised below.

Community Submissions

The following concerns are raised in community submissions:

· Traffic impacts, including congestion in and around peak hour and potential need to infrastructure improvements;

· Active and public transport accessibility and safety;

· Need for onsite car parking;

· Height impacts at Old Northern Road;

· Impacts on local rural character;

· Lack of demand for the facility; and

· Currency of the submitted documentation to support the proposal from the proponent.

Previous sections of this report have considered, responded to and provided recommendations regarding traffic and transport, bulk and scale and character. If followed, these recommendations would provide additional information and potentially resolve issues raised in the community submissions.

Should the proposal be submitted to Gateway and receive a positive determination, an additional statutory public exhibition would be required. Submitters would be notified of that exhibition and provided with a further opportunity to make a submission.

Public Authority Submissions

Submissions from public authorities from TfNSW, Sydney Water and Hills Shire Council are summarised, with Council officer responses.

Transport for NSW

Regarding the Planning Proposal’s Traffic Impact Assessment, the TfNSW submission advises:

· The proponent has incorporated traffic generation rates based on the Dural medical facility as requested, but this shows traffic impacts that are unrealistically high for the proposed development.

· Transport impacts should be informed by a detailed land‑use analysis and traffic generation estimates based on a comparable facility. Comparable development examples should be reviewed and incorporated into a future assessment.

· Transport impacts should consider if land uses on surrounding lands may transition to more intensive use, with cumulative impacts on the transport network.

· Transport impacts should be assessed before HLEP 2013 is amended to justify the proposed LEP amendments.

· Additional modelling should not be undertaken until Council or DPHI have provided a preliminary approval (eg Gateway determination).

· Additional modelling may show that only a smaller scale development is justified.

Regarding other matters, the TfNSW submission:

· Supported the proposed left-in/left-out driveway.

· Recommended further refinement of the specific land uses proposed prior to the planning agreement being refined to consider local and regional transport infrastructure improvements.

Council Officer response:

· The TfNSW position provides a clear requirement for design refinements and consideration of impacts as part of the Post-Gateway Determination process, prior to public exhibition. This would provide acceptable certainty for impact identification and mitigation.

· The updated assessment should consider an acceptable density control for the site, up to the concept design’s FSR of 1.2:1. If only a lower density control is acceptable, that should be reflected in the refined Planning Proposal presented to Council for consideration, prior to public exhibition.

Sydney Water

Regarding the Planning Proposal, Sydney Water submission advises the following:

Regarding water servicing:

· The proposed development is within the Dural Elevated Water Supply Zone (WSZ).

· Preliminary assessment suggests that the WSZ currently has sufficient capacity for this development.

Regarding wastewater servicing

· Wastewater servicing is currently unavailable to the site and it is within the Castle Hill Wastewater Catchment. The wastewater flows from the development will be discharged into sewage pumping station SP1111.

· SP1111 currently has capacity to accept the discharge from this development.

· The viability of a new sewage rising main connection as outlined in proponent’s Sewerage Management Plan has not been assessed. Therefore, potential odour issues should be investigated as part of a proponent-led direct Feasibility application with Sydney Water.

Trade wastewater requirement

· If this proposed land use is anticipated to generate trade wastewater, the proponent must apply for an approval to discharge trade wastewater to Sydney Water’s wastewater system and obtain a permit before commencing operation.

Council officer response:

· Should the Planning Proposal be submitted to DPHI for Gateway determination, it is recommended that Sydney Water be included as part of public agency consultation.

The Hills Shire Council

A submission was received from The Hills Shire Council. The submission notes that the comments are from officer level and have not been reported to the elected Hills Council for a formal resolution.

The Hills Shire Council raises concerns with the appropriateness of the site for the proposed land use, primarily having regard to the insufficient infrastructure capacity to facilitate such development in the area.

The submission acknowledges that The Hills LSPS identifies Round Corner as a town centre and the planned expansion site at Nos. 488-494 Old Northern Road, Dural will service future retail demand in the area. No further expansion is planned for the Round Corner Town Centre.

The submission also notes that the Planning Proposal references a future planning proposal for the Round Corner Town Centre, no such proposal has been formally lodged or assessed by The Hills Shire Council. The submission recommends that this assertion not be treated as established context or used to justify the current proposal.

The submission notes that a hospital is planned to be delivered in Rouse Hill, approximately 8.8 km west of the site. The submission recommends that the Planning Proposal should demonstrate consideration of planned hospital and justify the need for the proposed facility.

The submission raises concerns regarding potential traffic implications of the Planning Proposal on the capacity of Old Northern Road and the surrounding road network. It notes that significant road upgrades would be required to support regional traffic, but would be very costly due to high land values, steep terrain and environmental constraints.

The submission also notes that the proposed development will rely on intersection upgrades to be delivered as a part of the Round Corner Town Centre Expansion DA (979/2016/HB). The Planning Proposal should consider the expected timing and delivery of these upgrades and any associated impacts on the road network, if the proposed development is delivered prior to any intersection upgrades.

Council officer response:

· It is agreed that Council’s assessment of the Planning Proposal should not give weight to unlodged planning proposals. Only existing planning controls have been considered.

· Council officers agree that consideration of the Rouse Hill Hospital should be considered. It is recommended that DPHI address this through a referral to NSW Health as part of a future Gateway determination.

· Council officers agree with The Hills Shire Council regarding traffic impacts and recommend that these be resolved as part of a Post-Gateway assessment, in line with TfNSW recommendations.

7. Statutory Considerations

The preparation of a Planning Proposal is the first step in the process of requesting changes to a planning instrument. Should Council resolve to proceed with the Proposal to Gateway Determination, the DPHI would confirm whether any technical studies are required and relevant parts of the Planning Proposal to be updated or amended prior to public exhibition.

As part of the Gateway Authorisation process, Section 2.4 of the EP&A Act allows the Minister and the Director-General to delegate functions to a Council and/or an officer or employee of a Council. When submitting a Planning Proposal, Council is required to identify whether it wishes to Exercise Delegation (the Authorisation). Authorisation delegates the following plan making powers to Council:

· to make and determine not to make an LEP;

· to defer inclusion of certain matters; and

· to identify which matters must be considered and which stages of the plan making process must be carried out again.

Should Council resolve to progress the Planning Proposal, it is recommended that Council identifies that it intends to delegate the plan making functions to the General Manager.

Subject to a Gateway Determination being received, a further report would be prepared for Council’s consideration presenting a draft Voluntary Planning Agreement and draft Development Control Plan amendments to be placed on public exhibition concurrently with the revised Post-Gateway Planning Proposal.

CONSULTATION

Local Planning Panel Advice

The Planning Proposal was referred to the Hornsby Local Planning Panel for advice on 26 February 2026, in accordance with Section 2.19(1)(b) of the EP&A Act. That section requires the Local Planning Panel to provide advice on a Planning Proposal before Council considers whether to forward it to the DPHI for a Gateway determination.

The Panel advised that it agrees in principle that the Planning Proposal has sufficient strategic merit to progress to Gateway determination. The Panel raised concerns with the ability of the Planning Proposal’s proposed HLEP 2013 amendment to achieve the outcomes of the concept design. The Panel supported a refined Additional Local Provision that included FSR and utilising Reduced Level to prescribe the height control applying to the site.

The Panel also agreed that, should a Gateway determination be successful, it include conditions requiring the completion of an updated traffic assessment, preliminary contamination assessment and concept design. These would inform an updated Planning Proposal and development control plan for public exhibition.

The updated Planning Proposal aligns with the advice of the Panel.

Planning Proposal Consultation Strategy

Should the Planning Proposal receive a positive Gateway determination, it is likely that it would need to be updated and reported to Council prior to public exhibition. The future report would also include a consultation strategy, following the requirements of the Gateway determination, the Hornsby Shire Community Engagement Plan and the public exhibition requirements of the NSW Government’s Local Environmental Plan Making Guidelines.

Recommended consultation for the Planning Proposal would include:

· Letters to affected and adjoining property owners and those that made submissions to the non-statutory exhibition of the proposal

· Advertisement on Council’s ‘Your Say Hornsby’ website

· Advertisement in Council’s electronic newsletter

· Consultation with public authorities, including Hills Shire Council, Sydney Water, TfNSW and Health NSW, as well as other identified in the Gateway Determination. A copy of the Planning Proposal and relevant supporting material would be provided.

BUDGET

Costs associated with this Planning Proposal are covered through the proponent’s application fee. The matter has no direct financial impact upon Council’s adopted budget or forward estimates.

POLICY

The Local Planning Panels Direction – Planning Proposals requires that the Local Planning Panel must give its advice on the Planning Proposal before Council considers whether or not to forward it to the Minister in accordance with Section 9.1 clause (2)(b1) of the EP&A Act.

Council’s Planning Agreement Policy (2024) provides an overview of the planning agreement process for Council, providing a clear explanation of the steps and obligations relating to the preparation of a planning agreement. These obligations relate to Councillors, Council officers and landowners. The Policy supports State legislation, regulation and guidelines. Negotiations regarding the proposed planning agreement have and will be guided by the policy.

CONCLUSION

The report presents an owner-initiated Planning Proposal for 675-685 Old Northern Road, Dural. It discusses the assessment of the planning proposal and, as relevant, how the amendment of the Planning Proposal has responded to issues raised during the assessment.

The amended Planning Proposal seeks to amend the Hornsby Local Environmental Plan 2013 to permit a health services facility on the site and now includes improved height and density controls that respond to concerns raised regarding bulk and scale, allowing for a facility with an FSR of up to 1.2:1 and no more than a two storey frontage to Old Northern Road.

Preliminary exhibition of the proposal resulted in 12 community submissions objecting to the proposal and three agency submissions. TfNSW’s submission raises specific concerns regarding the potential density of the development and the implications on the local and regional road network.

Based on the assessment, including consideration of submissions and agency comments, it is considered that the amended Planning Proposal has sufficient strategic merit to progress to Gateway determination.

In order to address concerns regarding traffic and density, it is recommended that an updated Traffic Impact Assessment be required as part of post-Gateway reporting in line with advice from TfNSW. It should also clearly identify an acceptable density for the site, which may be an FSR lower than 1.2:1.

The proponent for the Planning Proposal has provided an updated letter of offer for a Planning Agreement. The offer suggests a monetary contribution of $1.1 million to assist Council with the delivery of public benefit works in the Dural locality including but not limited to upgrades and improvements to infrastructure, streetscape, public domain amenity, active and public transport, accessibility and safety. This offer provides a sound basis for continued negotiations with the goal of securing positive public benefit outcomes for the local community. It is recommended that Council officers continue to negotiate the terms of the Planning Agreement in accordance with its Planning Agreements Policy.

The revised Post-Gateway Planning Proposal updated draft Planning Agreement and Development Control Plan would be reported to Council prior to statutory public exhibition.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Acting Manager, Strategic Landuse Planning – Louise Higginson - who can be contacted on 9847 6798.

Louise Higginson

Acting Manager, Strategic Landuse Planning

Planning and Compliance Division

Katherine Vickery

Director - Planning and Compliance

Planning and Compliance Division

Attachments:

1.	675-685 Old Northern Road Dural Planning Proposal (Amended)
2.	Updated Letter of Offer: 675-685 Old Northern Road Dural Planning Proposal
3.	Section Plan: 675-685 Northern Road Dural Planning Proposal

File Reference: PP/1/2025

Document Number: D09331552

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