A plan to build up to 300 apartments at the former CSIRO site in Yarralumla is one step closer after the federal environment department gave the project the green light.
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Under the approval, the developer will be allowed to clear no more than 0.22 hectares of golden sun moth habitat.
It's a significant milestone for the project, which is now facing further approval from the National Capital Authority.
Developer Oakstand and owner Gunyar Pty Ltd have proposed to build a residential and commercial precinct on the 10.4-hectare block, which includes the heritage-registered Australian Forestry School building.
The redevelopment plans include the construction of 250 to 300 apartments, a hotel, an aged care facility and commercial offices.
The developer was required to obtain approval for the plans under the Environment Protection and Biodiversity Conservation Act, due to the presence of a threatened species and the site's Commonwealth heritage status.
The Department of Climate Change, Energy, the Environment and Water approved the proposal in April with a series of conditions.
These include that the developer must not clear more than 0.22 hectares of golden sun moth habitat and must install temporary exclusion fencing around part of the habitat.
A heritage impact assessment found 0.56 hectares of the overall site was golden sun moth habitat, which means about 60 per cent of it will be preserved.
Under the approval conditions, the developer must also "protect, conserve and maintain each existing heritage building" in the stage two area and ensure ongoing maintenance is undertaken in accordance with the EPBC Act.
Gunyar Pty Ltd purchased the site from CSIRO in June 2002 with a 20-year lease in place to the organisation.
The Trustee for Gunyar A.C.T. Properties Trust holds the crown lease for the site and The Shepherd Foundation, a charity assisting children with hearing loss, is the beneficiary of the trust.
Developer Oakstand is acting on behalf of The Shepherd Foundation to manage the redevelopment, which it has called Forestry Place.
Residents' group 'disappointed' by approval
The original plans included buildings varying in height from two to five storeys.
Following feedback from the National Capital Authority and the community, the height of all buildings was amended to three storeys plus attics.
According to the development website, the homes would predominately be two- and three-bedrooms apartments, catering to the owner-occupier market.
The scale of the redevelopment has been strongly opposed by the Yarralumla Residents Association.
Vice president Mike Lewis said it was "disappointing" the plans had been approved by the environment department.
"You just wonder what the point of the EPBC Act is if it doesn't protect sites like the CSIRO site," he said.
"It seems to me that the act is just not fit for purpose."
Mr Lewis said the association would continue to oppose the development in its current form.
"The problem is it sort of eats away at the garden city concept of Yarralumla, plus, the impact on traffic and just the density of the suburb," he said.
Next steps for the development
The next step for the developer is to amend the National Capital Plan to allow the residential component to go ahead, as the site is currently zoned for community facility use.
Oakstand CEO David Cullen said the group was pleased with the environment department's approval and would now focus on the National Capital Authority approval.
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"A revised application to amend the National Capital Plan has been lodged with the NCA and we are awaiting their response," he said in a statement.
"The Shepherd Foundation and Oakstand will continue to work with the NCA and look forward to a positive outcome."
A proposed draft amendment was presented to the National Capital Authority board at its December 2022 meeting for consideration prior to public consultation.
"Following discussion, the authority agreed that further refinement of the draft amendment and consultation with proponents be undertaken," a public record of the meeting stated.
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