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The Chinese developer of the abandoned Balmain Leagues Club site is seeking compensation from the state government for millions of dollars it claims it has lost over the prolonged acquisition of the property in Sydney’s inner west.
Transport for NSW did a U-turn on acquiring the notorious eyesore on one of Sydney’s busiest roads last year, after ditching plans to use the Rozelle property as a construction site for the $6.7 billion Western Harbour Tunnel.
Almost 18 months later, developer Heworth claims it is yet to receive any compensation for millions of dollars in unpaid rent by Transport for NSW, as well as financial damages and out-of-pocket expenses since the agency flagged in 2018 plans to take control of the property.
The site of the old Balmain Leagues Club in Rozelle.Credit: Brook Mitchell
The acquisition of the leasehold over the property for seven years took place in October 2021 but was reversed less than 12 months later after Transport for NSW decided it no longer needed it as a tunnelling site for the new harbour motorway project between Rozelle and North Sydney.
Heworth’s head of property Christopher Walsh claims that the transport agency’s actions raised significant concerns about its use of compulsory acquisition powers.
“This is a prime example of Transport for NSW’s exploitation and abuse of its unfettered powers and manipulation of legislative deficiencies,” he said.
“It took Transport for NSW nearly four years to acquire the Balmain Leagues Club site and, subsequently, less than four months into the acquisition to find an alternate tunnelling site.”
The burnt-out former Balmain Leagues Club site on Victoria Road in Rozelle, following a fire in May last year.Credit: Edwina Pickles
The developer has launched legal action in the NSW Land and Environment Court against Transport for NSW. Heworth said the legal process prevented it from revealing details of the total amount of compensation it was seeking.
Walsh said the developer was committed to the $530 million project to build a Wests Ashfield Leagues Club alongside 147 apartments, a town square, arts studio, a supermarket, shops, bars and restaurants on the site.
“Heworth has absolutely no plans to sell the site and has invested millions of dollars and resources to deliver the project,” he said.
The Balmain Leagues Club left the venue on Victoria Road in 2010, forced out by the-then Labor government’s ill-fated plans to build a metro station in the area. Last year, a fire tore through the abandoned property.
Walsh said demolition of the existing buildings next year was dependent on further approval from government agencies.
Transport for NSW said in a statement that it respected the right of property owners to challenge the offers of compensation through the court process, but it was inappropriate to comment any further on the case.
The agency said it always tried to minimise the need for property acquisition when planning for major infrastructure projects and, when it was required, worked closely with those impacted to ensure they received fair compensation.
Inner West Council Mayor Darcy Byrne said the way Transport for NSW had thrown its weight around during the acquisition process had been “very poor”.
“We called on the former government and Transport for NSW to demolish the building. It is still sitting there as a blight on the neighbourhood,” he said.
Last year, the then Coalition government decided to dig deeper tunnels for the main section of the Western Harbour Tunnel, ditching earlier plans to lay large tubes in a trench on the harbour floor.
Construction of the first stage of the tunnels from a WestConnex interchange at Rozelle to Birchgrove began in July 2022.
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