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In 1982, plans were approved for a 38-storey office tower to be built on the site. The tower was to be located directly fronting Bridge Street, where the Museum of Sydney now stands.
Source: Ringrose, R. 1982. "Tower to rise on city site". The Daily Telegraph, November 24:9.
The following year (1983), an archeological dig unearthed the foundations of the First Government House (1789-1846), sealing its fate. The Foundations would be preserved, and the public could view their remains. With a skyscraper boom occurring in the 1980s, Planning and Environment Minister Bob Carr sought to preserve the historical buildings and streetscape along Bridge Street, which also had implications for future development.
Comreality (owned by Sid Londish) bought the site in 1986. Over two years, it purchased neighbouring sites, including the Legal and General Buildings, to create a super site covering an entire block bounded by Bridge, Loftus, Bent and Young Streets. It would lead to what we see today, a public square facing Bridge Street with the Museum of Sydney behind it. Governor Phillip Tower (1993 - 37 stories/227 metres - Note that there is a 40 metre high foyer, with fewer floors in the tower) and Governor Macquarie Tower (1994 - 36 levels/145 metres) would rise towards the middle of the block. Terrace houses in Young and Phillip Streets were preserved.
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