The City of Sydney is proposing plans to make it ‘more profitable’ to invest in property development which reduces Sydney’s impact on the environment and improves water and energy use.

Property owners and developers who invest in Sustainable Sydney 2030 initiatives - including energy and water-saving measures, green roofs and affordable housing - will be able to apply for exemptions from the development contribution levy.

The draft Central Sydney Contributions Plan 2012, now on public exhibition, would increase the range of developments that could be exempt from the current levy and encourage development that helps achieve the objectives of Sustainable Sydney 2030.

Developers could apply for partial exemptions and waivers of the 1 per cent development contribution levy if their project includes:

• Affordable housing, boarding houses or not-for-profit development;

• The installation of green energy facilities, such as solar panels;

• Showers and bicycle lock-up facilities for bike riders;

• Tanks and greywater treatment for the re-use of water in gardens and cooling towers; and

• Refitting of buildings to provide small finegrain spaces for new shops.

Sydney’s mayor, Clover Moore, said the updated plan would encourage developers to consider ways they can play a more positive role in supporting their local community through green initiatives.

1 Bligh Street. Image: Architectus

“Sydney needs more buildings like the award-winning 1 Bligh Street, which has the highest Green Star rating score for a high-rise building in NSW,” the Mayor said.

“Developers need to be innovative when designing for the future, and it’s essential for them to consider sustainable initiatives such as green energy, water harvesting and active transport.”

Developers of projects worth more than $200,000 in Central Sydney presently pay a 1 per cent section 61 contribution, with the money used to contribute to the cost of public works.

Since the introduction of the levy in 1997, the City has received about $90 million in contributions within Central Sydney, averaging $6 million a year. Each year, funds are allocated to either partially or fully recoup the cost of improvement works completed in Central Sydney.

Recently completed works include stage one of the $7 million Kent Street cycleway, the $4 million Pitt Street Mall refurbishment, and the $1 million Chinatown tourist information kiosk.

The plan identifies $295 million of anticipated public domain, community facility, open space and traffic improvements for Central Sydney.

The City has earmarked $1.8 billion in infrastructure improvements across the city up to 2021 with an anticipated $260 million to come from development contributions.

The draft plan is on exhibition from 4 July to 2 August 2012. People can view the draft plan and make a submission at www.cityofsydney.nsw.gov.au/Council/OnExhibition or at City of Sydney venues.