Hotel Tycoon Jerry Schwartz Takes Newcastle Council to Court Over Carousel Rejection
Schwartz takes Newcastle council to court over carousel

Newcastle's prominent hotelier and property developer, Dr Jerry Schwartz, has launched legal action against the City of Newcastle, escalating a dispute over a proposed amusement ride on the city's prized harbour foreshore.

Court Showdown Over Carousel Plans

The conflict centres on Dr Schwartz's plan to install a $25,000, seven-metre-wide carousel in the garden of his Rydges Newcastle hotel, intended for the exclusive use of guests. The City of Newcastle has refused the development application on two separate occasions, most recently in August 2025, prompting Dr Schwartz to file an appeal in the NSW Land and Environment Court.

Council planners rejected the proposal due to significant concerns about its impact on urban design, visual amenity, and the heritage character of the foreshore area. A council spokesman stated the carousel was assessed as "highly visible from the public domain" and would negatively impact key foreshore views.

"I Could Easily Pack Up and Move Out"

In a pointed statement to the Newcastle Herald, Dr Schwartz expressed his frustration, suggesting the council's stance could drive his investment away from the city. "I could easily pack up and move out of Newcastle, but I haven't because I believe it has a wonderful future," he said.

He argued the carousel had genuine merit and would add vibrancy to the area. "I think it is stupid that they won't let me add this feature to the foreshore. Not only is it a great feature for the kids, but it will provide entertainment for passers-by," Dr Schwartz said. He also contrasted the council's position with its desire for cooperation on the separate restoration of the Newcastle post office project.

Council Stands Firm on Foreshore Character

The City of Newcastle remains steadfast in its assessment. The council's principal development officer for planning, William Toose, had previously advised that the carousel was not compatible with the character of the harbour foreshore or city centre. The council maintains that structures in this prominent location must be conscientiously designed to maintain streetscape character and foreshore views.

"The form, scale, and appearance of the proposed carousel were considered to be unsympathetic to the setting," the council spokesman explained. "It was determined that the structure would detract from the qualities of the natural and built environment while offering minimal public benefit."

This is the second time Dr Schwartz has submitted plans for the carousel; an earlier application in 2023 was also refused. He contends that he addressed the council's initial concerns in the revised proposal, making concessions to ensure the ride fit the location "as harmoniously as possible."

The matter now awaits a hearing in the Land and Environment Court, setting the stage for a legal battle over the future look and feel of Newcastle's iconic waterfront.