New East Lake plans are beyond disappointing as it would scuttle the potential to open up a light rail route to Fyshwick, the head of a business group has said.
Fyshwick Business Association president Rob Evans said the government had failed to consult with him on the draft plans, which were released on Thursday.
Mr Evans said the government's plan shut off the opportunity to connect Kingston and Fyshwick along a light rail and active travel route.
"It's just a really poor outcome not moving the railway station. It is a massively missed opportunity to make Canberra a world-class city here and they're missing it," Mr Evans said.
The government's plan includes an upgrade for the existing light rail station to develop it into a multi-modal transport hub.
The Fyshwick Business Association has previously released a plan that included relocating the railway station to the east of Fyshwick and using the existing rail corridor for light rail.
Development along just half of the association's proposed line would yield 160,000 square metres of additional developable land in the inner south, enough for between 8000 and 9000 dwellings.
Mr Evans called on the government to explain why its plan was better than the association's plan, which had been produced at the association's cost and released last year.
"If you put both plans side by side, one's phenomenally good for an outcome for Canberra and the other isn't," Mr Evans said.
"Well, it's as simple as that."
Mr Evans said the government had indicated to the association its plan presented a great opportunity for a light rail corridor.
"And now they've really closed it off by saying that this is their draft plan that they want to get on with," he said.
Mr Evans said the government also needed to explain how a multi-modal transport hub would work centred around the existing site of the railway station.
"How is that going to be good to have all the trucks and freight and so forth? And the heavy rail in the middle of Kingston, how is that a good outcome?" he said.
The ACT government on Thursday released an updated East Lake strategy, which included plans to redevelop The Causeway, an historic workers' settlement, into an area of up to six storeys.
The plan includes upgrades to the Canberra railway station, a park and recreational area on the site of a former landfill on the edge of the Jerrabomberra Wetlands and an "innovation precinct" and business hub around Mildura Street.
ACT Planning Minister Mick Gentleman on Thursday said the plan would help the government transform an underutilised area into a thriving, mixed-use precinct.
"We'd like to see work start fairly quickly. There is demand for housing right across Canberra, so the quicker we can deliver housing, the better for Canberra," Mr Gentleman said.
Mr Evans on Friday said he was concerned by Mr Gentleman's desire to get work started quickly.
"To me that says they're not really consulting with us at all, but they haven't consulted with us and they want to get on with this as soon as possible," he said.
The Kingston and Barton Residents Group had also not had the chance to see the plan or meet with the consultants before it was released.
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