Westin Hotel launches Supreme Court action over Town Hall station entrance
A major hotel in Melbourne is suing the state government for millions of dollars in extra damages following the takeover of land rights in City Square by the Metro Tunnel, threatening to worsen the rail project’s blow to taxpayers.
The Westin Hotel launched the Supreme Court lawsuit earlier this month, seeking $17.3 million for compulsory easements for the new City Hall station entrance.
The station’s new roof, elevators and fire control room at the Collins Street end of Town Square intervene in the space the Westin Hotel previously protected for air, light and fire escape access.
A new visitor kiosk near Flinders Lane also occupies the hotel’s old easement.
The Department of Transport and Planning last year offered $1.8 million in compensation to the hotel’s owners, TA Covenant Pty Ltd, pledging to provide an alternative fire exit.
However, the hotel is now asking for almost 10 times the money offered.
The disputed claim filed with the Supreme Court on March 3 includes a request for $17 million for acquired easements, as well as an additional $337,482 for legal, appraisal and administrative expenses.
The Westin’s light and air rights were removed where they intersected the three City Hall station structures, and the easements remain active over the new infrastructure.
The hotel has already received compensation for the conversion of the adjacent City Square into a construction site in 2018. The plaza’s Mockridge fountain, Burke and Wills statue and Brunetti cage They’re all gone now.
His legal bid threatens to add to the hefty compensation payments already made for the construction of the $15 billion Metro Tunnel, which opened in November.
A leaked state government report in August 2024 revealed that delays in finishing the City Hall station meant the Westin was “entitled to support for longer than expected, which could have a further cost impact.”
Spokesperson for Malaysian company TA Enterprise Bought the hotel in 2008He did not answer when asked how much compensation they had received from the Metro Tunnel, but acknowledged that its Australian subsidiary had recently made a request regarding easement changes at City Square.
“Since the matter is currently before the courts, it would not be appropriate for us to comment on the details of the case,” he said.
Fast food giant McDonald’s previously sought to claim $70.7 million in damages after its restaurant on Swanston Street was demolished to make way for another Town Hall station entrance closer to Flinders Street.
The developers of a luxury apartment tower on St Kilda Road sued the Allan government for $20 million in 2024 after part of its land was bought for the new Anzac railway station. This land was among almost 100 property titles The government is expected to purchase Building the Metro Tunnel through the heart of Melbourne.
Despite cost increases in other parts of the project, land acquisition expenses remained under budget.
An auditor general’s report clarified The estimated cost of land acquisition in 2024 was $658.2 million; this was $57.3 million (8 percent) less than the 2022 approved budget of $715.5 million.
The Metro Tunnel’s budget was originally going to cost $11 billion. But design changes and other unforeseen problems led to disputes with builders, and costs exceeded $15 billion.
A spokesman for the Metro Tunnel project insisted the latest claim at the Westin Hotel would not bring the tunnel project further over budget.
“It would not be appropriate to comment as the matter is in the courts,” they said.
