The commission said the concept approval would allow for the 1980s building to be demolished and also set parameters for the development that were intended to “mitigate key impacts and ensure design excellence”.
Mirvac has faced opposition from locals and the City of Sydney for its bid to overhaul the complex next to Sydney Harbour at Pyrmont - which the Berejiklian government has earmarked for more intensive development.
The commission wrote to the Department of Planning,Industry and Environment in May voicing concerns the development would overshadow the waterfront walkway,constrict access to public space and disrupt views.
It requested the department - which recommended the project for approval - consult Mirvac on alternative plans to shrink the size of the northern podium housing shops and offices by several floors to one storey.
The commission also suggested a more slender tower,of the same 166-metre height,moved back from the waterfront.
In its response to the department,Mirvac said the “significant” reductions to the height of the northern podium and a narrower tower would have a “devastating impact” on the project and make it commercially unviable.