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Melinda Hayton, coordinator of the Friends of Trumper Park, said the community group was opposed to the private sector.
"It was my understanding that Jon wanted to expand into commercial activities, residential services, commercial car parking, et cetera," she said. "This would definitely give a major financial windfall gain from the site."
But Mr Adgemis said he was investigating options for the site, which had been a wasteland since the bowling club was shut down in 2015, which were lawful and consistent with the terms of the lease, which runs until 2060. The NSW government charges annual rent $ 66,331.10 for the site in Sydney's eastern suburbs.
"We have considered a precinct that is only one concept being investigated," he said. "An aged care facility will not be used on the site as far as I am aware."
The site, adjacent to Trumper Park, has caused concern to residents, Woollahra Municipal Council and politicians and its current state of neglect.
Bureaucrats from the Department of Lands Founded by Paul Toole, Minister for Lands and Forestry.
"I am advised the bowling green contains weeds and is unable to be used for bowling in its present state," he said. "The Department observed window damage, minor waste litter and degraded paint. I am advised the site has no outdoor furniture. "
Mr Adgemis said he had not been made aware of any allegations of any breach of the lease: "The suggestion of any breach is clearly of concern and I will take the matter up with Crown Lands."
A spokesperson for Mr Toole said: "Quarry Street Ltd has committed to rectifying these breaches and improving the site."
He also said that the conditions of the lease and its reservation are permissible.
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Alex Greenwich, the independent member for Sydney, said the community is concerned about future development plans, pointing to what he called "streamlined process" to sell off Crown land.
"It is a disgrace that commercial companies have been allowed to trade public land for recreation," he said.
"A number of allegations … have been exposed, but we still do not know what will happen to the land."
Mr Greenwich said the densely populated area "desperately".
"There is a worrying trend of exchanging the environmental, social, recreational and cultural values of our Crown land for private profit, particularly in the inner city," he said.
Woollahra Counselor Harriet Price said a number of residents were concerned that Mr Adgemis might seek to change the terms of the lease to develop the site.
"I will be advocating to ensure there is no change in the use of the site, that the site is kept free of development and made available for the benefit of the community," she said.
A spokesman for the council said that it would be permissible under the terms of the lease, require the consent of the NSW government as the landowner and comply with zoning.
"Council would like to see the site maintained in public ownership for community purposes," he said.
Andrew Taylor is a Senior Reporter for the Sydney Morning Herald.
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