An angry City of Sydney Council has warned that the public is the loser in Lend Lease's latest proposals at Barangaroo, which include a big increase in floor space and a relocation of parkland away from the waterfront to make way for James Packer's proposed Crown casino.

In a submission sent to councillors Wednesday the city's planners say the proposal, known as modification 8, will lead to massive increases in development and profits for the companies involved, with no corresponding increase in public benefit or amenity. It says residential development has increased by 54 per cent, hospitality floor space by 79 per cent, and retail by 18 per cent. Yet the increase in public benefit is zero.

An angry City of Sydney Council has warned that the public is the loser in Lend Lease's latest proposals at Barangaroo. Credit:Dallas Kilponen

It has argued that the entire project is now so different from the original concept it should be required to be resubmitted as a new plan and has pointed out that approving it as a modification under Labor's much criticised Part 3A regime would not be possible under the Baird government's new rules for major projects. The submission says the plan also requires substantial change to three state planning policies.