The O'Farrell government will refuse a proposal to sell the Wentworth Park greyhound racetrack in Glebe, scuttling a bid to build a billion-dollar residential complex at the site.
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Racing Minister and acting Lands Minister George Souris ruled out the redevelopment on Tuesday after a public outcry, saying the government had no plans to redevelop the site ''and any third-party proposal to sell this Crown land will be rejected''.
''Wentworth Park is public land that is specifically reserved as open space and for activities such as greyhound racing and community interests, including junior sport, and that's the way it will remain,'' Mr Souris said.
It puts paid to the plan, revealed by Fairfax Media at the weekend, to sell the dog track and build between 500 and 700 apartments.
The proceeds would have funded two new sporting venues in western Sydney - a 35,000-seat covered stadium in Penrith or Liverpool worth about $350 million, and a greyhound and harness racing facility at Eastern Creek.
Greyhound Racing NSW and Harness Racing NSW had commissioned a report from consultant Deloitte on the plan.
Representatives from the Panthers Leagues Club and developer Brookfield Multiplex met Planning Minister Brad Hazzard in December to discuss the bid.
He advised them to submit the plan to the government through the controversial unsolicited proposals process, prompting fears the park could be redeveloped without community consultation.
Penrith Panthers Group chief executive Warren Wilson distanced the club from the controversy on Tuesday, saying plans for a sports stadium in western Sydney were ''completely independent'' from the Wentworth Park proposal.
The Wentworth Park Sporting Complex Trust chairman, Percy Allan, said he was pleased with the government's response.
''The trust categorically rejects such a proposal since it would involve turning Crown land reserved for public activities into a private estate,'' he said.
Trust board member Robert McKeown, who had called the plan ''ludicrous'', welcomed the government's stance.
''The community backlash [over selling the site] would be extraordinary,'' he said. ''It doesn't make any political sense and it doesn't make any social sense.
''The idea of alienating already scarce open land in the inner city … and bringing more people in at the same time is just crazy.''
The site is also used by schools, universities, sporting groups and community events.
The greyhound racing lease at Wentworth Park expires in 2027. Greyhound Racing NSW had been in protracted talks with the park's trust over a new lease to run until at least 2054, but was also considering moving to Eastern Creek.
The two parties have been unable to agree on how much the greyhound racing industry would pay in rent and upkeep at the facility, which needs about $6 million in major works.
Brookfield Multiplex and Greyhound Racing NSW declined to comment.
