Sydney Metro land acquisitions: Lawyer accuses government of undercutting property owners
Property owners in Sydney’s southwest say they have been left in the dark for four years over the future fate of their land — rezoned in 2020 for a Metro station.
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The chief executive of Sydney Metro is “not aware” of a decision by the NSW Government to rezone a series of land parcels in Sydney’s south west for a future Metro station — despite almost two years passing since property owners were told.
In July 2020, a total of 19 business owners in the industrial precinct neighbouring Narrellan Town Centre were told their land had been rezoned for Special Purpose Infrastructure — enabling the development of a train station — after initially being contacted in 2018 regarding a “possible compulsory acquisition plan” for their properties.
However, at an inquiry into government land acquisitions this month, Sydney Metro boss Peter Regan said: “I don’t believe we are undertaking acquisitions in Narellan”.
“Narellan is, I believe, on a future corridor and is not part of the current corridor,” Mr Regan told Shadow Treasurer Daniel Mookhey.
“It may form part of the potential future extension of the Metro Western Sydney Airport line.”
Reports to NSW Cabinet revealed properties stretching from Leppington to Western Sydney Airport and onto Oran Park through Narellan and Macarthur would be impacted by the extension of the Metro line — making properties “unsellable”.
But Mr Regan said Sydney Metro had “no investment decision” and was not aware of any “decision from government to build that section of rail line”.
Narellan property owner David Funnell, formerly of Funell’s Electrical, said despite four years on from contact from the NSW Government regarding potential acquisitions, landowners remain “in the dark”.
“We have heard absolutely nothing, in fact we have learnt more from speaking with (NewsCorp),” he said.
“Alot of real estate agents are knocking on our doors asking questions, but we know nothing — as far as I was concerned it had died of natural causes.”
Mr Funnell said the Special Infrastructure rezonings had “gridlocked” land owners from being able to develop on their own land.
“If I was a lot younger id be fighting like crazy to find out what could be done,” he said.
“All we know is they can build a Metro, but we can’t develop on it.”
It comes as Government acquisition specialists offered half the market value of properties they were purchasing for the Metro West, a parliamentary inquiry has heard.
The acquisition team for the Sydney-wide infrastructure project were accused of severely undercutting landowners when making compulsory acquisition offers in Five Dock, Clyde and Burwood for the Sydney Metro West project.
One of Sydney’s leading land resumption lawyers Newhouse & Arnold Solicitors Principal, David Newhouse told a Parliamentary Inquiry into government land acquisitions that government officials had “drawn a line in the sand and we’re not willing to give $1 more” on valuations for several property owners along the $12.5 billion proposed metro line that he represented in Sydney’s inner west.
“The valuer general did come in and assess independent market valuations,” Mr Newhouse said. “All of my clients that went to the valuer general came up significantly.
“Sometimes (valuations) doubled.”
Mr Newhouse said Sydney Metro officials never provided an explanation to land owners as to “how they got the valuations so wrong”.
MORE ON SYDNEY METRO ACQUISITIONS FROM JAKE McCALLUM
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Sydney Metro West acquisitions: business owners reject government compensation offers
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Sydney Metro West: where properties will be acquired, travel times and station sites
The resumption specialist said Sydney Metro officials actively engaged specialists lawyers and town planners in an effort to “identify technicalities” in an effort to undercut property owners.
“The process has gone completely skewed towards relying heavily on expert planners to ... try and assist their case”.
Beatty Hughes & Associates Special Counsel, Ballanda Sack, said the process of dealing with the NSW Government for land acquisitions has “become more difficult”.
“I feel like at the moment it is actually worse than it was several years ago,” she said.
Ms Sack said the NSW Government should provide the owners of property listed for acquisition with “funds upfront” so they can get expert advice, while also calling for the acquiring department to provide a valuation report to the property owner in an effort to explain the value offered.
Mr Newhouse said the problematic nature of government land acquisitions had just own answer — the NSW Government establish an all-reaching acquisitions department.
“We’ve seen a consistent policy of stonewalling by acquiring authorities in recent times,” he said. “Some authorities are clearly not making genuine attempts to acquire land by negotiation.
Shadow Treasurer Daniel Mookhey said it was “clear Sydney Metro is acting lawlessly and taking advantage of a broken system”.
“They act like a Goliath who revels in trampling over residents and small businesses that get in their way,” he said.
“As Sydney Metro’s acquisition spree continues, more residents and businesses risk falling prey to an agency prepared to plunder them.”
HE2020 boss Antoine Hayek was forced out of his Clyde factory following Metro West acquisition plans.
“It took Sydney Metro over a year to pay me for my business,” Mr Kayek told the Saturday Telegraph.
“The property prices, in that year, skyrocketed for commercial space which meant there was no way I was going to be able to buy back into the area for what I was compensated.”
Mr Hayek said Sydney Metro refused to pay hum stamp duty, despite the compulsory acquisition of his property.
“What they paid me for the property and the relocation of the business didn’t even cover the cost of the purchase of a new property,” he said. “They were supposed to pay business interruption for six months, however, they refused and claimed downturn was Covid-related. “We have been absolutely screwed by them — even at the height of Covid in June last year Sydney Metro were charging me rent for the site, they are heartless.”
Meanwhile Urban Florist owner Carli Jeffrey and her team were forced out the home of their Concord business, handed down through several generations of the Jeffrey family.
“Sydney Metro have no empathy,” she said. “They were so guarded and secretive in letting us know how they came up with their valuations.”
Ms Jeffrey said the department were “actively trying to swindle us”, even after the Valuer-General made determinations of property value.
“We got a fair outcome, because we fought so hard and went to the Valuer General,” she said.
“He then went into batt for us for what we were owed.
“I have Post Traumatic Stress thinking about the process today.
“It makes me feel sick to the stomach knowing others are still having to fight Sydney Metro.”
Sydney Metro chief executive, Peter Regan, rejected claims the government engaged lawyers and town planners to identify technicalities “in order to reduce the value it makes in order to buy property”.
“We engage consultants and lawyers as valuers as required to ensure we meet our obligations ... as a public organisation,” he said.
Meanwhile, Mr Regan argued 72 per cent of property the Sydney Metro team identified for acquisition was acquired “by commercial agreement”.
“We do out best to get, with the evidence available to us, to a value,” he said. “Any property owner does have the right, if we can’t reach an agreement, to go to the valuer general to make a determination as to the value.
“We absolutely do our best ... to reach agreement in a positive and collaborative fashion with as many owners as we can.”
Mr Regan said Sydney Metro “still isn’t done” in the acquisition process for Metro West with as many as 119 property interests either before the valuer general or the NSW Land and Environment Court.
Sydney Metro West stations have been confirmed at Westmead, Parramatta, Sydney Olympic Park, North Strathfield, Burwood North, Five Dock, The Bays, Pyrmont and Hunter Street in the Sydney CBD.
Meanwhile, the Metro West project was granted planning approval in March, 2021, with construction launched on December 9 last year.
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