Revealed: The new $5b plan for Rosehill mini-city

The NSW Labor government will be asked to buy Rosehill Racecourse for at least $5 billion to make way for 25,000 homes in a significant departure from initial plans for the Australian Turf Club to be quasi-developers of the site.

The revised proposal represents a last-ditch effort to convince ATC members to support the sale of the sprawling western Sydney racecourse while salvaging hopes that much-needed housing could be developed on the site.

In a sweetener to members, the ATC has revealed it would spend some of the proceeds on a massive hotel “overlooking the famous Royal Randwick straight”. There would be “enhanced dining and entertainment options with stunning track views” and weatherproof entrances for punters.

The new plan is a major shift from the potential deal announced by the Minns government with much fanfare in December 2023, under which Rosehill Racecourse was to be sold to developers to build thousands of homes as part of a new “mini-city”.

Under that plan, there would also be an extra stop for the Metro West train line.

Since that announcement, the ATC has faced fierce opposition from many of its members, including high-profile trainers Gai Waterhouse and Chris Waller, and its deputy chairman Tim Hale.

Waller last year told a parliamentary inquiry that “once Rosehill is gone, western Sydney has lost one of its great community attractions”. “To suggest it can be replaced, or another satisfactory site can be found is fanciful,” Waller told the inquiry.

A huge new hotel would be built at Royal Randwick with the proceeds of the sale of Rosehill Racecourse.

In a move designed to placate its divided membership, the ATC has abandoned plans to develop the site itself and instead wants a full sale to the government, for a minimum of $5 billion.

The sale would be paid in instalments over 15 years to fund major redevelopments.

As well as upgrades to Randwick, there would be a redesigned racecourse at Warwick Farm with a longer straight, paving the way for Group 1 racing to again be held at the course. There would also be an expansion of training facilities and stables, and a major renovation of member and spectator facilities.

How the entrance to Randwick might look, using the proceeds of the sale of Rosehill.

Canterbury Park would be “fully improved” and the ATC would also replace Rosehill Gardens with a new Group 1 quality racecourse.

ATC chairman Peter McGauran, the most prominent backer of the plan to end racing at Rosehill, said an unsolicited proposal for the sale had been lodged with the state government.

“This resolution is without any doubt the most important and consequential in the history of our club and it is vital that every ATC member votes,” McGauran said.

“This proposal offers a one-off opportunity to make the ATC the most financially secure racing
club in the world.”

If the deal collapses, it will be a major blow to the Minns government’s push to boost Sydney’s housing supply amid an affordability crisis that has stoked fears of an exodus of young people from the city.

The proposed redevelopment of Rosehill Racecourse – which is a short drive from the Parramatta CBD – into a major housing development, along with a new station on the Metro West line, was touted by Premier Chris Minns as a once-in-a-generation opportunity to boost housing supply.

However, Minns has previously made it clear that plans for an additional metro station at Rosehill were contingent on the ATC agreeing to develop the land.

The initial proposal also pitted some of racing’s most influential figures – including Racing NSW chief executive Peter V’landys and Waterhouse – against each other. V’landys is a strong supporter of the Rosehill sale.

A notice sent to all 11,100 ATC members on Wednesday evening said the proposal was about “securing ATC’s financial independence”.

One of the resolutions to be voted on includes the government allowing the ATC “the right to continue using a portion of Rosehill Gardens to host racing operations until sufficient time has elapsed to allow for alternate facilities to be completed and/or available”.

The government would also grant ATC the right to continue using a portion of Rosehill Gardens for training and stabling operations. The new proposal requires most members to vote in favour at the extraordinary general meeting next month.

The parliamentary inquiry last year found “conflicting evidence and uncertainty” over the financial benefits of the initial deal. Doubts were also raised over proposals for a replacement racetrack.

One option floated was to develop a new track at the historic brick pit at Sydney Olympic Park. But a sticking point was that the pit is home to endangered green and golden bell frogs.

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