Rozelle Village, Balmain Leagues Club redevelopment in jeopardy after Heworth and Transport NSW dispute

Developer Heworth were all set to take their Rozelle Village development to the market, having secured development approval twice and put together everything they would need to market the project.

However a clash with Transport NSW is putting the development, on the site of the former Balmain Leagues Club, in jeopardy.

Heworth, the landowner, is out of pocket millions of dollars over the intentionally protracted compulsory acquisition and later rescission of the site by Transport for NSW for the Western Harbour Tunnel project. The leasehold acquisition, which was for a seven-year construction lease, took place in October 2021 and was rescinded less than a year into the lease term.

Read more: Rozelle Village, former Balmain Leagues Club redevelopment, set to launch

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.

“Furthermore, the conduct in which Transport for NSW and their senior executives granted a $722 million construction contract variation to John Holland in January 2022, who would commence tunnelling works from the Rozelle Interchange instead of the Balmain Leagues Club, without putting the contract out for competitive tender, also raises serious questions over probity and proper procurement processes and could be the matter for an investigation by the current Labor government.”

Walsh warns dispossessed landowners of Transport for NSW’s historical track record of malicious behaviour, total lack of accountability and unapologetic use of loopholes in the Just Terms Act when carrying out compulsory acquisitions in NSW.

He 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.

The matter returns to the NSW Land and Environment Court for a Directions Hearing on February 5 2024.