John Azar And Sydney Business Groups Push Back On Town Hall Square Demolition Plan

Sydney's Town Hall Square fight has shifted from a civic-design debate into a jobs, business and basic-service argument, after retail union and business groups stepped up pressure on the City of Sydney's plan to remove buildings opposite Town Hall.

The current flashpoint is the block bounded by George, Pitt and Park streets. The City of Sydney says it is creating a new public space in the heart of the city opposite Sydney Town Hall, with the project planned for concept design through mid-2026, a development application in late 2026, demolition and construction from 2028, and completion in 2031. The council's project page says the square would include trees, seating, lighting and paving, and that the project involves removing seven buildings on the site.

Daily Telegraph reporting on Sunday put the local business-owner and worker concern into sharper focus. The Shop, Distributive and Allied Employees Association has joined business opponents, including the Australian Retail Council, Business Sydney and local operators, under the Save Our City Shops Alliance. The union argues the proposal threatens up to 1000 jobs across the block, including more than 300 retail roles, and says the NSW Government should intervene before demolition planning advances.

The founder and operator angle is strongest at Hotel Coronation. The Telegraph reported that hotel boss John Azar, who took over the lease in 2023 and invested millions in the business, is urging the state government to save the hotel from demolition and to consider heritage protections for the hotel and the Woolworths building. His concern is not only sentimental. A business that has spent money on fitout, staffing and a long lease can be badly exposed when a public project timetable changes.

This is why the story matters beyond one supermarket and one pub. Town Hall is a transport hub, a food-and-grocery stop, a workplace corridor and a meeting point. Removing the Woolworths, Hotel Coronation and other shopfronts would change how office workers, residents, students and commuters use the CBD between trains, buses, light rail and nearby towers. A new plaza may eventually become useful public space, but the transition has direct costs for businesses that already serve the area.

The council has a public-space case to make. Its project page frames the square as part of a long-term plan to link Sydney Town Hall, Sydney Square, George Street and surrounding heritage buildings, and to create room for everyday use, civic events and community gatherings. That is a legitimate planning goal in a city centre that has already been reshaped by George Street pedestrianisation.

The practical question is whether the timetable, cost, compensation and service impacts have been explained well enough for the people who stand to lose premises or jobs. Earlier ABC reporting noted that council had already spent tens of millions on properties flagged for the project and that Woolworths Town Hall was a key supermarket for residents and workers. Those details make the current backlash unsurprising. It is not simply anti-plaza sentiment. It is a demand that public space planning accounts for the businesses and workers already holding the city together.