This article is from the Australian Property Journal archive
THE owner of the Balmain Leagues Club site in Sydney’s Rozelle, Heworth Holdings Group, is alleging Transport NSW of abuse of power and alleged malfeasance over its stunted compulsory acquisition of the site, and says the government has not paid a cent of millions of dollars in unpaid rent.
Transport for NSW entered into a leasehold acquisition in October of 2021 for a seven-year construction lease to use the property as a dirt-dumping site for the $6.7 billion Western Harbour Tunnel, and which was rescinded less than a year into the lease term.
Transport for NSW had initially flagged intentions to take over the property more than five years ago.
“Since the landowner received the initial ‘notification of acquisition’ in March 2018, it is yet to receive a single cent in compensation for millions of dollars in unpaid rent by Transport for NSW and financial damages and out-of-pocket expenses caused by the Department’s reckless actions,” Heworth said in a statement.
Heworth this year received approval for amended plans for the former Balmain Leagues Club site, which will see a $530 million project with 147 apartments, Wests Ashfield Leagues Club, town square, supermarket, bars and restaurants built on the derelict site located on the prominent corner site of Victoria Road, Darling and Waterloo streets. A fire tore through the site last year, and the burnt-out building remains.
Christopher Walsh, head of property at Heworth Holdings, alleges Transport for NSW’s actions over several years raises significant concerns regarding the use of their powers under the Just Terms Act and their improper conduct during the acquisition negotiations process as well as the eventual rescission of the acquisition of the site.
“This is a prime example of Transport for NSW’s exploitation and abuse of its unfettered powers and manipulation of legislative deficiencies. It’s disgraceful and we are, unfortunately, one of hundreds of similar acquisition cases gone wrong,” 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.
Heworth has now launched legal action in the NSW Land and Environment Court against Transport for NSW.
Heworth Holdings Group said it “invites the Minister for Transport, Jo Haylen, and the Secretary to investigate improper conduct and abuse of power and alleged misfeasance in public office by Transport for NSW and its senior executives involved in the Balmain Leagues Club acquisition and rescission debacle that has now spanned over half a decade and still remains unresolved.
“The landowner is out of pocket millions of dollars over the intentionally protracted compulsory acquisition and later rescission of the former Balmain Leagues Club site located in inner Sydney’s Rozelle by Transport for NSW for the Western Harbour Tunnel project.”
Walsh questioned the conduct in which Transport for NSW and their senior executives granted a $722 million construction contract variation to John Holland in January of 2022, “who would commence tunnelling works from the Rozelle Interchange instead of the Balmain Leagues Club, without putting the contract out for competitive tender, (which) also raises serious questions over probity and proper procurement processes and could be the matter for an investigation by the current Labor government”.
Walsh alleges “dirty tactics, unbecoming of an acquiring authority and model litigant, such as prolonged negotiations, unjustified delays, low-ball compensation offers and strategic exploitation of the Valuer General’s and litigation processes”.
