The Sydney housing plan we’ll be paying billions for until 2041

NSW taxpayers could still be paying billions of dollars in 2041 for the Minns government’s plan to buy Rosehill racecourse, as the Australian Turf Club claims turning the historic site into 25,000 new homes may take up to 40 years.

Before a vote on the club’s contentious plan to sell Rosehill to the NSW government later this month, a proposal sent to members on Tuesday details a 15-year payment plan for taxpayers to outlay $1.9 billion within five years of a deal being struck.

Rosehill racecourse would be replaced by housing if sold to the state government.Credit: Getty

Then the government would pay the ATC “no less than” $100 million a year for a decade, with a potential $2.2 billion payment at the end of the 15-year agreement in 2041.

The club’s proposal – the second to be circulated to members after an initial vote was delayed due to intervention by the powerful industry regulator Racing NSW – argues the $5 billion price tag will never be higher thanks to the state’s acute housing shortage.

“The sale facilitates high-density residential development in a location where people want to live – creating housing supply, improved affordability and lasting benefits for the community,” the proposal states.

The 111-page document says a decision on a new metro station at Rosehill is “due in the coming weeks” and that without it, the “value and viability” of the track would be “materially diminished”.

The plan to sell Rosehill – which has proven bitterly divisive within the racing industry – was first floated by the ATC and Premier Chris Minns in 2023.

Premier Chris Minns and Australian Turf Club chairman Peter McGauran announced the potential Rosehill deal in December 2023.Credit: Dion Georgopoulos

Despite the premier initially saying the deal would cost taxpayers “zero, nothing,” because the ATC would sell it to a private developer, the plan changed. In March, the ATC updated its proposal by asking the government to buy the land, a step that allows the racing club to avoid the risk of developing it.

The government is yet to make a formal decision on the purchase, but Minns, a driving force behind the plan, has previously supported that idea, saying it would come at no cost to taxpayers because “ultimately, we’d be flipping the land” and on-selling it to developers.

The proposal to members makes clear it could be decades before the redevelopment would be complete. “Relevantly, ATC is not proposing to assume risk associated with the development of the site, which may occur over a period of up to 40 years,” it states.

The government declined to comment on the timeframe.

In addition, the ATC plans to redevelop Warwick Farm into a top-line metropolitan track at a cost of $800 million should members vote to sell Rosehill.

More than $500 million would also be set aside for the acquisition of another parcel of land in western Sydney, understood to be in the Penrith area, for a training centre and track with potential for group 1 racing.

The windfall from a sale would flow towards an upgrade of existing facilities including a $518 million facelift for the Randwick racecourse.

The proposal also includes a sweetener for members in the form of a loyalty program. It would include free membership for all members for five years while fees would be waived for life for those with more than 20 years’ membership. Members would also receive $1000 food and drink credits for five years.

The ATC told members it alone would have access to and control of the sale proceeds, not Racing NSW, saying it would appoint an independent board to oversee them.

It would also set up a racing advisory body of members, trainers breeders, owners and jockeys, as well as a future investment fund.

Save Rosehill, a group of ATC members opposing the sale, said it would tell its supporters to vote no to the revised proposal.

“The loyalty program and lifestyle facilities represent an inappropriate incentive to mask the ATC’s failure to answer the members’ concerns about the future of racing in NSW,” a spokesman for the group said.

ATC chairman Peter McGauran said the financial realities for racing were stark due to declining wagering and falling attendance numbers at Rosehill.

“The proposed $5 billion sale of Rosehill Gardens represents a significant opportunity to secure the future of the club, ensuring its continued growth and stability for future generations,” McGauran said.

The club’s 11,000 members can vote on the proposal online ahead of an extraordinary general meeting on May 27.

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