Premier Nathan Rees announced the approval of the $2 billion project last week. He said the 5.8 hectare project would create homes for 2500 new residents and space for 5400 workers.

There will be 11 towers on the site, with the main building as tall as the 32-storey University of Technology Building across the road. Up to 1200 construction jobs will be created by the mixed commercial, residential and retail development.

The developer of the site, Frasers Broadway, is also a major political donor, giving $25,000 to the NSW Labor Party and $15,000 to the NSW Liberal Party in 2007.

Minister for Planning Kristina Keneally said at the announcement last Thursday that the development plans had been modified in negotiations between Frasers and the Government before approval being granted.

“Affordable housing contributions will increase from $23 million to $32 million, translating into a potential 30 per cent increase in affordable housing,” Ms Keneally said.

“And negotiations are underway to increase developer contributions for extra community infrastructure on the site.”

Modifications also include doubling the open space with 950 square metres of additional public park space, a new 4275 square metre public plaza, and 20,000 extra square metres of floor space. A number of environmentally-friendly initiatives have been proposed for the development, including sustainable measures for water and power.

Lindsay Charles from Friends of the Carlton United Site said residents were disappointed by the scale of the development, in particular the number of car spaces and the increase from earlier plans in the floor space density.

“We applaud the sustainable initiatives and are pleased with increased open space, but we are very disappointed at the number of car parking spaces allocated - 2000 is potentially an additional 4000 car movements a day through already busy streets,” she said.

“The additional height means the additional open space will be more overshadowed, it won’t get any sun in winter and some buildings will never receive direct sunlight ever.”

Ms Charles said residents would now focus on trying to get Frasers to minimise the impact of the development.

“There’s very limited options but we will be looking for Frasers to make a contribution to Chippendale to help ameliorate the poor effects,” she said.

Possible initiatives could include rooftop gardens for the Chippendale community on the four hectares of rooftop space that will be in the development and starting a food co-operative.

Frasers CEO Dr Stanley Quek said: “Frasers Broadway will be intimately connected to the web of inner-Sydney life, attracting residents and visitors to its large central park and people-friendly boulevards. A mix of homes, retail, cultural and commercial space will make for an animated and accessible urban quarter.

“We have listened to a wide range of views and taken a world-leading position on sustainability initiatives to deliver significant environmental, social, cultural and economic benefits to the local community and to Sydney as a whole.”

Construction will begin in 2010 and last up till 2018.