Carousel clash: Jerry Schwartz takes Newcastle Council to court over harbourside hotel plan
Property and hotel heavyweight Jerry Schwartz is heading for a legal stoush with City of Newcastle after council knocked back his bid to place a carousel outside his harbourside Rydges Newcastle hotel.
The move to the Land and Environment Court follows a second refusal last August, after Schwartz proposed installing a $25,000 amusement ride — measuring 7 metres wide and 6.5 metres tall — in the hotel’s garden for guests only.
Council said no, citing issues around urban design and the site’s built form, character, visual amenity and heritage.
Schwartz told the Newcastle Herald he’s pushing ahead with the court challenge because he believes the idea stacks up and would help lift the area’s atmosphere.
"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 pointed to other dealings with council, saying the relationship has felt inconsistent across different projects.
"They [the council] want me to have a good relationship with them on the post office restoration, but here they are trying to make my life difficult on other projects.
"I could easily pack up and move out of Newcastle, but I haven't because I believe it has a wonderful future."
A City of Newcastle spokesperson said the carousel application was refused because of its visual impact and because it didn’t align with the foreshore’s character.
"The proposed carousel was assessed as being highly visible from the public domain and resulting in impacts to key foreshore views and visual amenity," the spokesman said.
"City of Newcastle is committed to ensuring that buildings and structures are designed to complement the surrounding environment."
The spokesperson added council felt the carousel’s form, scale and appearance weren’t in keeping with the setting.
"It was determined that the structure would detract from the qualities of the natural and built environment while offering minimal public benefit," the spokesman said.
"The applicant has since lodged an appeal against the refusal of the application."
Council had previously urged Schwartz to withdraw the proposal, arguing it wasn’t a fit for the harbour foreshore or city centre.
"In its locality, the carousel will be highly visible from the public domain, where foreshore views and streetscape character should be maintained through the conscientious design of buildings and ancillary structures," City of Newcastle principal development officer (planning), William Toose said at the time.
An earlier version of the plan, first lodged in 2023, was also refused — with council at the time arguing it was “contrary to the public interest”, would have an “unreasonable impact on the environment” and didn’t align with parts of the local environmental plan.
Schwartz said he took the initial feedback onboard and believed the revised application addressed the concerns.
"We were more than happy to make concessions and make the carousel fit in with the location as harmoniously as possible," he said.
Jonathan Jackson, 14th January 2026
