One of two new stations announced for the $27 billion Sydney to Parramatta Metro West rail project will be built at Pyrmont on land owned by The Star casino.
NSW Premier Gladys Berejiklian and Transport Minister Andrew Constance on Wednesday announced the final two stations in the massive infrastructure project that promises a 20-minute commute between Parramatta and the CBD.
However, The Star says it did not know its site, between Pyrmont Bridge Road and Union Street, had been selected as the location for the Pyrmont development, thwarting their plans for a 140m tower.
"The first we heard of the final location was when we were notified this morning by email of a property-acquisition process," a spokesman told AAP.
When making the announcement, Mr Constance said the location of the station would greatly increase the land value of commercial properties in the vicinity, and indicated those businesses would be expected to contribute to the cost of building the station.
"It's only fair that we share in that value," he said.
But a spokesman for The Star told AAP the development could actually be detrimental to the company.
"This leaves at grave risk a Star master plan which would help deliver an additional $1 billion in tourism assets and infrastructure via two hotels, new dining and entertainment precincts and around 2000 jobs," he said.
It is understood the site was to be home to the tower, detailed in proposals the group had been discussing with the Department of Planning for some months.
Representatives will urgently seek meetings with the government to see how - or if - the two plans can co-exist.
The other station, to be located in Hunter Street, will require the compulsory acquisition of 11 commercial properties in Sydney's CBD.
The two new sites will join the other station locations which have been confirmed for Sydney Metro West - Westmead, Parramatta, Sydney Olympic Park, North Strathfield, Burwood North, Five Dock and The Bays.
The first major tunnelling contract for the Sydney Metro West project will be awarded within months, with tunnel boring expected to get underway by the end of next year.
The project, which is expected to create 10,000 direct and 70,000 indirect jobs, is due to be completed by 2030.
Australian Associated Press