A public and acrimonious conflict has broken out between prominent hotelier Dr Jerry Schwartz and the City of Newcastle council, centring on two contentious projects: a stalled heritage restoration and a rejected amusement ride.
Carousel Dispute Heads to Court
The latest flashpoint is Dr Schwartz's plan to install a $25,000 carousel in the garden of his Rydges Newcastle hotel, overlooking the harbour. The council refused the development application, prompting Dr Schwartz to initiate proceedings in the NSW Land and Environment Court earlier this week.
Dr Schwartz, who also owns the Novotel Newcastle and Rydges Hunter Valley, labelled the council's decision as "stupid" and accused the authority of making his life difficult. "I could easily pack up and move out of Newcastle, but I haven't because I believe it has a wonderful future," he stated.
In a sharp retort, a City of Newcastle spokesman dismissed the remarks as the "latest in a long line of bizarre claims." The council questioned the feasibility of the carousel's stated cost, arguing, "Anyone who thinks a large carousel can be built and installed on the edge of Newcastle Harbour for just $25,000 is kidding themselves."
Heritage Post Office Restoration Stalls
The council spokesman redirected focus to what it sees as a more pressing issue: the lack of progress on the restoration of the former Newcastle Post Office. Dr Schwartz purchased the state-heritage-listed building from the Awabakal Aboriginal Land Council in 2018 for $3.5 million.
The council accused Dr Schwartz of a pattern of inaction, stating he had "lodged multiple DAs for the building, modified them, then withdrawn them." The spokesman emphasised, "This historic building and our city deserve better."
Dr Schwartz vehemently denied the criticism, calling it "unjust, unfair and untrue." He explained that a single modification for a manager's apartment was withdrawn on advice that it would not be permitted. He blamed delays on "numerous ridiculous requirements" and claimed being blocked from emergency roofing repairs three years ago had worsened water damage, now necessitating full floor replacement on two levels.
Despite receiving a $1 million government grant last year with a two-year deadline to start construction, key approvals are still missing. Heritage NSW confirmed that a crucial Section 60 works application, required for major work on a state heritage item, has not yet been submitted.
Heritage Inspection and Ministerial Concern
The standoff has attracted the attention of state authorities. Heritage NSW officials will inspect the condition of the 1903 building next month, following a previous inspection in mid-2025 that found significant structural compromise due to water damage and corrosion.
This inspection comes after Heritage Minister Penny Sharpe expressed concern over the restoration's lack of progress and requested Heritage NSW work closely with Dr Schwartz's team. Dr Schwartz confirmed he or his project manager would attend the inspection.
Dr Schwartz's vision for the post office includes a conference centre, retail shops, a cafe, an Indigenous cultural centre, a medical museum, and a model train display of Newcastle. He estimates needing to contribute $7 for every $1 of public money to complete the project.
As the legal battle over the carousel begins and pressure mounts over the post office, the future of both these Newcastle landmarks remains uncertain, caught in a war of words between a determined developer and a frustrated council.
