The ACT government has dramatically scaled back the proposal for the Yarralumla Brickworks redevelopment following strong opposition to the plan.
The Land Development Agency has confirmed it will reduce the number of dwellings planned for the site from 1800 to a maximum of just 380.
It has reduced the proposed development area from 49 hectares to 16 hectares and has scaled down building heights to three-storey limits.
The government has backed down over its plans to allow eight storey buildings along Adelaide Avenue in West Deakin and will no longer develop land near the entrance to Government House.
The $50 million Mint Interchange has been removed from the project after the ACT government committed to fund and construct it following the previous plan's revision in February.
The decision to scale back the size and density of the proposal is the second significant change to the plans for the brickworks site since they were aired in 2014.
A petition with more than 4000 signatures was tabled in the Legislative Assembly in August last year, which prompted a review of the plan.
The Land Development Agency responded to community concerns in a revised proposal issued in February and revised building heights.
The agency also identified a further 500 dwelling sites in addition to the 2014 plan, adjacent to Cotter Road for future development, which added to a total of 1800 dwellings.
The ACT government has confirmed it will retain its commitment to deliver the $10 million Quarry Park and investment in restoration of the brickworks site.
The National Capital Authority said earlier this year it would be unable to support the proposal until the government addressed concerns about access to Government House, the impact on historic trees and the plan for six-storey buildings near Dunrossil Drive.
The residents surrounding the development had flagged a number of issues with the plans including height, density, traffic, and parking issues.
Land Development Agency chief executive David Dawes said the scaled back plans should remove most of the concerns held by the community towards the project.
He said the brickworks would now become the central focus of the redevelopment.
"I think it's important to be able to restore it, the fact that we can actually do a little bit of a development around that estate will mean that we'll be able to deliver some of the other high quality community benefits for it as well," Mr Dawes said.
He said while the National Capital Authority had approved of the plans initially, heightened security concerns had changed the situation.
"I suppose there was a lot of consultation with the NCA and we wouldn't have gone out with the original plans if there wasn't a degree of agreement on that," Mr Dawes said.
"Things have changed from when they were encouraging us to do something to where we've got to."
He said the dwellings for the reduced development site would range from 175 to 380 depending on how many townhouses were constructed compared to units.
The revised plan will no longer require a Territory Plan Variation because the current zoning for the area prescribed a maximum of three storeys in height.
Mr Dawes said the government was also investigating an unsolicited proposal by artisans based at the brickworks for a village-style laneway of micro galleries and cafes.
The proposal is being led by Thor Diesendorf of Thor's Hammer who wants to preserve the heritage value and characteristics of the area, while welcoming community investment to create a family friendly, industrial-style venue rich in history.
Chief Minister Andrew Barr said the government would continue to work with stakeholders on traffic management and parking issues that were identified in community consultation earlier this year.
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