Perth councillors have approved a futuristic lookout tower on Elder Street in Perth and a large digital billboard on its side.

The $1 million tower, made predominantly of glass, is set to be built on top of a Western Power substation just south of Hay Street.

The proponent, private media company Matzin Capital, said the tower would be used as a central meeting point for tourists embarking on walking tours of Kings Park, the parliamentary precinct, West Perth and the western edge of Perth.

Camera Icon The tower would have views across the Mitchell Freeway and to Parliament House. Credit: Sharon Smith/The West Australian

Facilities at the tower would include a cafe, electric bike hire and wireless internet.

The top floor would feature a lookout with views across the Mitchell Freeway, State Parliament and the Barracks Arch.

Lord Mayor Lisa Scaffidi said she thought the building was the best thing that had happened to Elder Street since a carpark a few years ago.

Deputy Mayor James Limnios gave credit to the architects for thinking outside the box.

“The architecture involved is pretty groovy. It will look good,” he said.

Camera Icon The design for the $1m lookout tower. Credit: Supplied

Councillor Reece Harley argued the building would be a great addition to the city, but without the advertising sign the project may not go ahead.

A report to councillors endorsed by the planning committee supported the design of the tower, describing it as “architecturally interesting”.

“The design of the tower and the proposed uses are considered a beneficial outcome for the site that would otherwise remain a paved area containing a Western Power substation,” the report said.

Camera Icon The proposed $1m lookout development from Mark Aronson Architecture. Credit: Supplied

But the report raised concerns about the tower’s 7.5m by 4.5m digital billboard on the northern side, including claims it could distract drivers on Elder Street.

“The proposed location of the advertising sign is directly contrary to the city’s signs policy as the sign is considered to be inappropriately located, being directed towards Elder and Hay streets and not being in a public space where people gather or linger and where it might contribute to the vibrancy of a gathering space, as intended in the signs policy,” it said.

Despite the recommendation on the billboard, the full application was approved.

It will be referred to the WA Planning Commission for approval.