Redfern-Waterloo Authority chips in on the Block

The negotiations broke a four-year tussle with the Department of Planning over the governance and financing of the Aboriginal Housing Company's (AHC) Pemulwuy Project – a $50 million, 62-house development that aims to restore a strong and healthy indigenous community to Redfern.

City of Sydney Labor councillor Meredith Burgmann was the galvanising force in the agreement, arranging the meeting between AHC CEO Mick Mundine, and RWA CEO Robert Domm that resulted in the waiving of the fee.

Dr Burgmann said she simply acted as a necessary "circuit breaker" and that her hand in brokering the deal was not only fuelled by the council election.

"I think that if nothing else comes out of this campaign except that the Aboriginal housing project can now go ahead, I'll be thrilled," she said.

The RWA have attached no conditions concerning the payment.

The AHC is a charitable organisation. It does not receive government funding and cannot raise money from investors until the development application is passed.

Director of the Pemulwuy Project, Peter Valilis, said the pre-election rivalry between Dr Burgmann and other lord mayoral candidates had a positive impact on the Pemulwuy cause.

He also labelled the prolonged stand-off with the Department of Planning as unwarranted, saying the architectural plans had always complied with the conditions placed on them, and the State Government and planning minister were serving their own agenda to "micro-manage" Aboriginal projects.

"The only objection is Frank Sartor's personal one," Mr Valilis said. "Now that he's gone, that cancer he infected the Department with is slowly starting to dissipate.

"At the end of the day Redfern really won't move forward until the Pemulwuy Project is done. In essence, the Government delayed this project for six years, and a lot of people have suffered and died on the Block since those delays."

Redwatch spokesman Geoff Turnbull said while Frank Sartor's attitude could have contributed to the setbacks, the decision not to support housing on the Block was a State Cabinet one that dates back to 2004.

"People hope that this basically means there has been some change in the Government's position," Mr Turnbull said. "We don't know how it will be handled by Kristina Keneally… She will probably rely much more on the advice which she gets given and won't be as interventionist as the previous [planning] minister."

Mr Valilis said the housing component of the project was important for Aboriginal families, while the commercial element would create real employment opportunities in the hospitality and tourism industries, and would give many a chance to own their own businesses.

"It's not just for them [Aboriginal people], this is for the whole of the city," Mr Valilis said. "Sydney does not have an Aboriginal tourist cultural area, and it's sorely missing one. Redfern is the obvious place, and this project can be the catalyst that sets that off."

The development application will go on exhibition for 30 days next month, but Mr Turnbull says it will still be 18 months to two years before the building gets underway.