Questions have been raised over Macquarie Bank's unsolicited bid to develop prime city airspace above a Martin Place metro station, with the independent MP for Sydney, Alex Greenwich, writing to Premier Mike Baird calling for an investigation.
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Macquarie has revealed to Fairfax Media it lodged the unsolicited proposal with the Baird government in February of this year.
Former residents of a building slated to be demolished on Elizabeth Street, next door to a Macquarie property, are angry that Macquarie's plan was not disclosed to them as they negotiated prices for the forced sale of their heritage-listed apartments with Transport for NSW many months later.
Macquarie wants to build a high rise on the site of their demolished homes. The existence of a bid was only revealed publicly in October by the Baird government.
Transport Minister Andrew Constance had previously refused to answer the question of when Macquarie first lodged its bid, when asked by Mr Greenwich through parliamentary processes.
The last of the residents living in 7 Elizabeth Street were forced to leave on Thursday, as the Baird government gazetted their homes for compulsory acquisition on Friday.
These residents, and many more former residents who had reluctantly accepted offers from Transport for NSW in July and August, are angry that Transport for NSW refused to include the potential value of the airspace above their property in the price.
Stephen Choularton, who refused to sell his apartment at 7 Elizabeth Street and will go to court, said he was "extremely disappointed" and accused Transport for NSW negotiators of "bullying".
He said as recently as last week Transport for NSW negotiators had told him the airspace had no value.
"We didn't know they already had an offer for airspace above from Macquarie. They denied the airspace had value a dozen times. It is shocking for a government agency," Mr Choularton said.
"I'm dumbfounded," said former resident Stephen Taylor, when told Macquarie had lodged its bid in February.
His valuation process was concluded in July this year and he believes the NSW government had an obligation to inform him of relevant property valuation information so he could be sure of being compensated fairly.
Mr Greenwich said: "This timeline is concerning and it certainly justifies the need for a full and thorough investigation."
Most of the residents of 7 Elizabeth Street were not informed their homes were to be demolished until November 2015.
Macquarie has confirmed to Fairfax Media it met with Sydney Metro before November.
The art deco building at 7 Elizabeth Street was designed in the 1930s by prominent architect Emil Sodersten, and its interiors by Marion Hall Best have featured in Historic Houses Trust exhibitions.
A nondescript Macquarie building next door which is used to store bicycles and lockers for staff who work at the adjoining Martin Place headquarters for the bank has been spared demolition. This is despite an earlier 2009 plan for a metro stop at Martin Place by the Labor government including the demolition of this building.
The new metro site instead dog-legs around the Macquarie property.
Asked if the company had made representations to the Baird government for its building at 9 Elizabeth Street to be spared demolition, a Macquarie spokeswoman replied it had met with members of the Sydney Metro team "in late 2015 to discuss the possible impact of the project on Macquarie's headquarters".
"This was after Transport for NSW announced the commencement of community consultation on Sydney Metro City and Southwest in June 2015."
David Newhouse of Newhouse & Arnold Solicitors, a lawyer acting for a dozen affected land owners of the Sydney Metro project, said: "The process has been highly irregular and they have not been transparent. Sydney Metro is holding all the information that surrounds the offers. Other government agencies freely give that information to land owners."
Macquarie said it "was not and is not an advisor" to Transport for NSW on the Sydney Metro City and Southwest.
Mr Greenwich had written to Mr Baird on Thursday, raising "serious concerns about the involvement of Macquarie Bank in the government's decision, planning and process for location of the Martin Place Metro Station".
"Constituents have asked me about whether this timing reflects inappropriate knowledge about decisions on the metro station," he wrote.
Mr Baird's office said he would respond in the usual manner.
A Department of Premier and Cabinet spokesman said: "Transport for NSW and other government agencies are undertaking a detailed assessment of the merits of the proposal with no guarantee or commitment from either the NSW government or Macquarie Group Limited."
