STATE Government bureaucrats were described as “mean and tricky” by a property developer that is in a multimillion-dollar compensation fight with the State Government over land it wants to grab for WestConnex.

Desane Properties has rejected an offer from Roads and Maritime Services to compulsorily acquire land in Rozelle that the developer wants to rezone so it can build 200 apartments.

Planners want the land in Lilyfield Rd, now used by businesses and warehouses, as part of the motorway’s underground M4-M5 Link at Rozelle interchange for $18.4 million, but Desane refused the offer.

The developer said it wants in excess of $100 million.

Desane has started proceedings in the NSW Supreme Court seeking that the State of NSW, RMS and the Sydney Motorway Corporation be “restrained from acting upon or taking any step, in reliance upon a Proposed Acquisition Notice (PAN)” issued by RMS.

The company is also seeking to have the notice quashed or set aside.

The matter was heard briefly in court this morning and was set down for hearing from November 20.

media_camera The M4-M5 Link Concept Design, released by WestConnex in May, showed green space where the Desane Building and Gillespies Cranes properties now exist.

RMS is also after land nearby owned by Gillespies Cranes.

Gillespies’ managing director John Gillespie said he received an offer of $13 million, far below the $90 million price tag put forward by an independent property developer, if the property was to be rezoned residential.

Mr Gillespie also fears the business may have to move to Sydney’s far west if it cannot find suitable local premises for is fleet of mobile cranes, resulting in the potential loss of dozens of jobs in the inner west.

media_camera Mechanic Dave Callahan at Gillespies Cranes is one of dozens of workers affected by the RMS land acquisition program at Rozelle. Picture: Simon Bullard

Desane Group chairman, John Sheehan, said outside court that the company cannot understand why RMS wants the property when the WestConnex tunnel would be 30m below ground.

“We were told the property was needed for surveying and for geotechnical purposes,” Professor Sheehan said.

He said it has not received a reply from RMS on the idea of leasing the property temporarily before it property is handed back to Desane.

“It simply doesn’t make common sense when you are just going to be putting a tunnel over 30m deep for which, under the legislation, there is no compensation. Why spend that level of funds when you simply don’t need to?”

Professor Sheehan said a number of tenant businesses are being forced to move due to the land acquisition.

He said RMS has already been negotiating separately with them about compensation payments.

media_camera View of Desane Building that RMS wants to make way for the M4-M5 Link. Picture: Simon Bullard

When asked how he would describe the State Government’s dealings with Desane, Professor Sheehan said: “In terms of RMS, who we’ve been dealing with, I can only say that they have been mean and tricky,” he said.

“I think that sums it up neatly.”

Mr Gillespie said his business, which has been in the inner west since 1950, is considering relocating to Glendenning, just west of Blacktown.

He said more than 30 employees, the majority of whom live locally, would be affected by the move.

“They have indicated to us they would not travel out to Glendenning.”

Mr Gillespie described his dealings with RMS as “appalling” and “disgusting” and confirmed he is considering taking legal action..

“There has been no transparency. RMS have given us no idea why they actually want to acquire our property.”

Labor’s mayoral candidate for the Inner West Council, Darcy Byrne, who is advocating on behalf of the businesses, said Desane’s action in the Supreme Court was a “body blow to the Berejiklian Government”.

“It should send a message that they need to stop with their arrogant and destructive approach to WestConnex,” Mr Byrne said.

media_camera Labor mayoral candidate for Inner West Council, Darcy Byrne (centre), speaks at a press conference with the manager of Gillespies Cranes, John Gillespie (left), and the chairman of the Desane Group, John Sheehan (right), about the WestConnex land compensation battle between Rozelle businesses and the State Government.

“The Desane challenge to the WestConnex acquisitions here in the Rozelle Goods yard is set to prove what we’ve all suspected that it is actually unjust and improper for the Government to acquire properties when they don't actually have a planning approval.”

Mr Byrne pointed out that an environmental-impact statement for the M4-M5 Link was advertised to go on public exhibition from today (August 16) put had now been postposed for two days.

“Having streamrollered their way through Haberfield and St Peters the Government has mistakenly now come up against a foe as big as it.

“In the case of these brave businesses in Rozelle I believe it is going to be defeated in the courts.”

Construction of the $4.3 billion new WestConnex M5 Construction of the $4.3 billion new WestConnex M5

Mr Byrne urged WestConnex Minister Stuart Ayres and Premier Gladys Berejiklian to get involved in negotiations and treat the businesses “fairly and with respect ”.

The WestConnex Action Group condemned the release of the EIS on Friday, only about two weeks after community submissions on the M4-M5 Concept Design closed.

“SMC couldn’t possibly have properly considered more than two months of feedback on the Concept Design in just two weeks,” spokeswoman Rhea Liebmann said.

“It’s clear that SMC and the Berejiklian Government have no intention of actually listening to the community.”

RMS said land owners can appeal acquisition offers to the NSW Valuer General, and if unhappy with the result, then appeal to the Land and Environment Court.