The car park is in a central location, near the Riverside Theatre and the restaurants of Church Street, and could allow the state government to service the museum with its planned Parramatta light rail line. Parramatta lord mayor Paul Garrard does not want the museum to be moved to the banks of the Parramatta River. Credit:Gene Ramirez But councillors have their own plans for the site and are adamant it should not be used for the museum. The council paid millions for the car park, and a series of other sites, as part of a long-term strategy to rejuvenate the Parramatta River foreshore. While no plans have been approved for the site, councillors said it is the only one that can be developed and used as a public domain and the museum would have a "negative impact" on the vision of creating a "river city".

Lord mayor Paul Garrard said the council would not be dictated to by the government. The state government can acquire the land, but would have to compensate the council. "We've only just finished consolidating the land and now the next step is to start planning and going forward those plans don't include giving it away to the state government," Cr Garrard said. "The museum is not the responsibility of Parramatta Council. If the state government wanted to build a museum there, they should have bought it themselves." The other prospective site is part of Parramatta Park and is already owned by the state government. It is west of the city centre, near Parramatta High School. The state's government plan to create a new "arts and cultural precinct" in Parramatta would be essentially started from scratch at the site, but the location would allow for a bigger museum and car park to be built.

Parramatta Park director Suellen Fitzgerald supports moving the museum to the park, saying it would be an "ideal site" for cultural institutions. The Sydney Business Chamber has called for the site to be located where the current Arthur Phillip School is in the city centre, but that option appears to be off the table as plans for a high-rise school there have progressed. Deputy Premier, and Minister for the Arts, Troy Grant said a decision on the museum's new location would be made in the first half of 2016. There is not yet a firm time line for when the Powerhouse Museum will close at Ultimo, or when the site will be put on the market for sale. The minister said a a consortium led by consultants KPMG was preparing a business case to further develop relocation plans.

"The Powerhouse will remain open at its present site for as long as possible prior to the opening of the new site at Parramatta," he said.