NSW Government ordered to pay North Sydney Council $622k in compensation over parks, golf club acquired for Western Harbour Tunnel

A Sydney council has secured a legal win against the NSW Government after disputing the amount of compensation it would receive for land forcibly acquired for a major tunnel project.

The land was acquired for construction works on Sydney’s newest motorway tunnel.

The NSW Government has been ordered to pay a Sydney council more than $600,000 in compensation for forcibly acquiring sections of three popular parks and a golf club to make way for a multi-billion dollar motorway tunnel.

A total of $622,165 plus interest has been awarded to North Sydney Council following a court battle with Transport for NSW over land compensation for land acquired for the construction of the Western Harbour Tunnel and Warringah Freeway.

The land at Cammeray Park, Anzac Park, St Leonards Park and Cammeray Golf Club was acquired for almost five years by Transport for NSW for construction works on the tunnel, which is due to open to traffic in 2027.

North Sydney Council took the case to the Land and Environment Court after disputing the government’s original compensation offer, which included just $35,000 for a large section of acquired land at Cammeray Park.

The council argued the acquisition had “deprived” residents access to open space, driven down property values and impacted the public’s “health”.

Land was acquired at Cammeray Park and Golf Club for construction works on the project.

It wanted $4.75m in compensation, $11.5m for the loss of open space, property values and health benefits, and $27m in “disturbance” impacts including the cost of reinstating the park to its former standard once construction on the freeway has concluded.

The court, however, rejected key aspects of the council’s arguments including that the acquisition had impacted property values as well costs for reinstatement works which Transport for NSW is carrying out.

In a ruling last week, Land and Environment Court Justice Sandra Duggan said the $622,165 compensation would reflect the reduction in public benefit from the loss of public open space and “disturbance costs”.

A parcel of land acquired at Cammeray.

A North Sydney Council spokeswoman– which hired top Sydney barrister Adrian Galasso to fight the legal case – said the council “was proud to have run the case in the NSW Land and Environment Court on behalf of its community”.

“Whilst the amount awarded was less than the amount contended by council, council is pleased that the court ultimately agreed with council’s position that there was loss attributable to the reduction in public benefit from loss of public open space,’’ she said.

“Given the negative impact that the Warringah Freeway upgrade has had on the North Sydney community and the compensation amount determined by the Valuer-General, it was important for council (to) test the legal interpretation of the relevant legislation and seek additional compensation on behalf of our community.”

The council appealed the original compensation offer in the Land and Environment Court.

A Transport for NSW spokesman said the department “acknowledges the Land and Environment Court’s judgment”.

“While the decision largely upholds the position Transport for NSW took in this matter, (the department) will spend some time working through the judgment to understand its implications,” he said.

The acquisition of land on the north shore has drawn criticism from residents over environmental impacts including the removal of hundreds of trees to make way for construction works on the new motorway.

At Cammeray Park alone, 264 trees have had to be removed.

The court order comes after Transport for NSW previously paid Cammeray Golf Club more than $993,000 in compensation and financial support for a temporary lease on its golfing greens, which had previously been compulsorily acquired for the project.

North Sydney Mayor Zoe Baker said it was “disappointing” Transport for NSW had “forced” the council to launch the “costly and lengthy legal proceedings”.

She said adequate compensation should have been provided to the community to “mitigate the loss of hectares of open space during the construction of these major toll road projects”.