Minns defended the proposal on Friday as the inquiry began,reiterating his fear that Sydney would become a “city with no grandchildren” unless it built more housing,and saying proponents of the deal such as V’landys should not have their “head taken off” for being open to new things.

“This culture in Sydney that says everything has to be set in stone,nothing can change,is hugely detrimental to the city,” the premier said. “If we don’t adopt change in an international city like Sydney,we will be stuck in the mud.”

V’landys echoed that view following Friday’s inquiry. “We want to help the government,naturally,” he told reporters. “Chris Minns is probably the best premier I’ve seen in my time,and if we can help them,we will.”

At the hearing,McGauran confirmed the current unimproved value of the 60-hectare Rosehill site was $1.6 billion,but said the addition of a metro station,along with residential rezoning and a staged sell-off,would push it much higher. “I’m yet to find any valuer or large-scale experienced property developer who disagrees with $5 billion,” he said.

McMahon said it would not devalue the site if the metro station at Rosehill was delayed beyond the mooted 2032 opening of Metro West – as recently reported by 2GB – but Hale contested this,arguing it would affect what developers would be prepared to pay up front.

“Overwhelmingly,the view amongst those[ATC members] who attend the races is strongly against the sale of Rosehill,” Hale said. “I would have thought a substantial majority will vote against the proposal if things stay as they are.”

McMahon confirmed he met members of the state government’s Sydney Metro review team in August 2023,where he was told 40,000 homes would be required to justify an additional metro station,and Planning Department secretary Kiersten Fishburn on October 25. He then met with Minns on October 30 and briefed Racing NSW on November 1,at which point confidentiality agreements were signed. The ATC board was not briefed until November 21.

McGauran acknowledged that during subsequent meetings with horse trainers,he argued one reason to sell Rosehill and move racing elsewhere was that race crowds were declining due to demographics and the “high Indian population” near Parramatta.

He denied Latham’s characterisation that he had said words to the effect of “there are too many Indians living in the Parramatta region”.

“That’s offensive in the way you phrase it … you’re suggesting that I might have a problem with Indian families,” McGauran said. It was purely an examination of the racetrack’s likely audience.

The inquiry also heard competing views on whether the historic brick pit at Olympic Park would be suitable for a new racetrack to replace Rosehill.

V’landys said he was confident a track around the brick pit could co-exist with endangered green and golden bell frogs that have stymied previous development proposals at the site. “I appreciate there are beautiful frogs there,but we can cohabitate with those,” he said.

Racing NSW was undertaking due diligence including ecological and engineering assessments,V’landys said,but early indications were the site could accommodate a track bigger than Rosehill. He added:“I will make it very clear that they will need a second track for this[sale] to proceed.”

But Richard Callander,chief executive of the NSW Trainers Association,said it was “fanciful” the former brick pit could be an alternative first-grade racecourse. “It would be a massive loss to the racing industry to lose Rosehill as a track,” he told the inquiry.

McGauran said he would suspend judgment on the brick pit’s suitability until assessments were complete. He said the ATC was also exploring other sites which he would not flag publicly.

Opposition planning spokesman Scott Farlow,who is chairing the inquiry,said Friday’s evidence showed the Rosehill deal “should be scratched”. The benefit to taxpayers had not been established,he said,and there were still legitimate questions about whose idea it was in the first place. “It seems a fantasy at the moment,” he said of the project.

Meanwhile,the Turf Club is progressing to stage 2 of its unsolicited proposal to sell the asset. If it “stacks up”,the ATC would seek commitment from the government on a metro station and rezoning,McGauran said,and then put the deal to members.

If they vote it down,“that will be the end of the proposal and the members’ decision will be respected”,he pledged.

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