The Baird government is being urged to scuttle plans for a multimillion-dollar development on prized public land in Paddington following an investigation into a bowling club run on the site.
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Private developer CSKS Holdings, owned by Bellevue Hill businessman Christian Sanchez, wants to build a childcare centre on the Paddington Bowling Club site.
Earlier this year the state government reviewed the circumstances in which a 50-year commercial lease was granted over the Crown land and transferred to CSKS Holdings.
The findings of that review were referred to the Independent Commission Against Corruption, which has not announced if it will take further action.
An investigation by the Office of Liquor, Gaming and Racing (OLGR) into a separate company that runs the bowling club on the land recommended this week that the club be fined and its licence cancelled by the Independent Liquor and Gaming Authority (ILGA). The ILGA has not yet conducted its own inquiry.
The OLGR says it is concerned the club "has not been conducted in good faith".
Action group Friends of Quarry Street said it was now "quietly optimistic" the government would withdraw the "much-maligned 50-year lease" of the land.
Residents are concerned that CSKS's proposal for the childcare centre, if approved, would pave the way for high-rise development on the site, which is set aside for public open space but is approved for community facilities.
Upper house Greens MP David Shoebridge said it was "utterly unacceptable" for the development to go ahead.
The government was contacted for comment.
