The owner of The Imperial Hotel, Shadd Danesi, has signalled he will lodge a new application following a council meeting that saw his request for approval for 788 patrons rejected.

Instead, City of Sydney councillors voted to grant the venue with a patron capacity of 442, up from 306, subject to a number of conditions.

 “Whilst to some extent, I’m pleased I got a slight increase in the numbers, it’s not in the interests of the residents nor of the hotel to have people queuing up,” Danesi told SX. “So I’ll probably lodge a fresh DA [development application] to once again try and convince the councillors of the merits of getting people off the street and into a sound-proof and controlled environment.”

At the meeting on Monday night, a group of Erskineville residents protesting the application gathered in the council chamber. Some carried placards that read: “Residents before developers”.

All councilors spoke with most saying it was about finding balance between meeting the needs of residents and those of the GLBT community.

Councillor John McInerney moved a motion that any increase be subject to a set of conditions. These include a detailed security plan to be devised by the owner; the establishment of a procedure for residents to lodge complaints; a monthly meeting to be set up between Danesi and locals; and a full review within 12 months.

Danesi indicated he would have to read the terms of the conditions in more detail but said he would be willing to comply with them.

But asked whether he believed balanced had been achieved, Danesi replied: “No”.

Because of the approval, Danesi cited the possibility of now having up to 300 people waiting in the queue and be “subject to homophobic violence”, when those patrons can be inside the hotel.

The Imperial Hotel is scheduled to open in September.

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