Sydneysiders have criticized Justin Hemmes’ plans to create a 24/7 hotel and entertainment precinct after he spent millions of dollars buying properties in the CBD.
Documents filed with the City of Sydney last month showed Hemmes’ company, Merivale, plans to transform six office and apartment buildings on King, Clarence and York streets.
Their proposal includes a hotel, underground nightclub, jazz club, supper club, restaurant, cafeteria, sports bar, spa, gym, lounge, internal patio and offices.
Almost all six property titles included in the plan have been purchased by JH CLARENCE #2, a company registered in May 2022 with Mr. Hemmes as a director, the Sydney Morning Herald reported.
The submission of Mr Hemmes’ conceptual development application (DA), which precedes site-specific DAs, sparked massive resistance from the small number of residents and business owners who have refused to sell to him.
Many believe that if their plans are approved, increased noise and “chaos” will ruin them.
One of the residents taking on the billionaire is Jerry Chen, a financial worker and the sole owner of the heritage-listed apartments 104-118 Clarence Street, who has refused to sell them to Mr. Hemmes.
He and other short-term residents in the block are concerned that Merivale’s majority representation in the building’s strata could lead to their eviction at any time.
Billionaire hospitality magnate Justin Hemmes wants to build a huge hotel and hospitality precinct (pictured), including a 24/7 nightclub, in Sydney’s central business district.
They have lodged objections to the DA’s proposal with the City of Sydney, citing anger at the potential removal of housing during a housing crisis.
“Mixed-use zones that include residential spaces are essential to creating vibrant and sustainable communities,” their objection read.
“By converting this site into a purely commercial and entertainment-focused precinct, the proposal undermines the social fabric of the area and contributes to the erosion of liveable and balanced urban environments.”
Several business owners have also opposed Mr. Hemmes’ proposal.
John and Anna Arcidiacono, office owners on a neighboring block, told the council that the district attorney had included the use of parking spaces on their property.
“We have several concerns about the proposal, including the fact that it proposes the use of land we own,” Anna Arcidiacono wrote.
‘We have not given the owners consent to the application.
“The proposal to the council involves the proposed use of our car parking area… but the proponent has no right or agreement to use that area at all, and the space is necessary for us to use.”
Hemmes (pictured with partner Madeline Holtznagel) invested tens of millions of dollars in the district attorney for King, Clarence and York streets.
The block included in Mr Hemmes is one of four Sydney Purple Flag accredited districts, a global scheme that recognizes areas with diverse and balanced nightlife, including entertainment and dining.
Chen, who has lived in the CBD for almost a decade, believes the billionaire’s proposed introduction of nightlife would tip the scales and see residents pushed out of the block.
Of particular concern to residents is potential noise from the proposed 24/7 underground nightclub.
“If you have a nightclub running 24/7, all the time, imagine the chaos, the inconvenience, the noise pollution,” he told the outlet.
‘We understand that the city is a mixed-use area. There are specific areas for (entertainment) on George Street. There are enough clubs in the city to satisfy everyone’s interests.
Chen described residents’ objections to Hemmes’ plan as a “battle of David versus Goliath.”
Merivale-appointed corporate communications specialist Sue Cato told SMH the company underwent a “comprehensive consultation process” before submitting the DA.
The City of Sydney will consider the proposal next year.
Daily Mail Australia has contacted Merivale for further comment.