The state government has responded to a community petition against the proposed basketball stadium at Lambton, as finger-pointing continues over the contentious issue.
More than 1500 signed a petition opposing the proposed basketball stadium development on Wallarah and Blackley ovals due to loss of green space, flooding, traffic and parking.
In his response to the petition, Minister for Lands and Sport Steve Kamper said Newcastle council identified two potential locations for the stadium - the Lambton site and the former Astra Street landfill at Shortland.
"The Astra Street site is deemed unviable due to the long term remediation required and zoning limitations," Mr Kamper's letter said.
"Therefore, the Basketball Association of Newcastle, as the proponent, has entered into an agreement with Newcastle council as the Crown Land managers of that site to construct the facility on the Lambton site."
City of Newcastle said it had "not entered into any agreements and is not the determining authority for the application as it is a State Significant Development".
"Further significant NSW government approvals are required before the Hunter Indoor Sports Centre can proceed," a City of Newcastle spokesperson said.
"The project application is the responsibility of Newcastle Basketball, as are all associated planning and construction costs."
The council has consistently said the basketball project was being managed, funded and assessed by the NSW government and the council's only role was "to ensure that all sporting groups continue to have access to quality sporting facilities".
Resident Jacqui Rosewood, who led the petition, said Mr Kamper's response indicating the council's involvement in site selection was an important point for residents.
"We feel gaslit by representatives from Newcastle council constantly telling us they are not involved, it is not their project yet we know they are involved in the main point of contention, the location," she said.
Mr Kamper's letter also responded to the possibility of moving the proposed location elsewhere. Newcastle Labor councillors have called on the state government to buy or compulsorily acquire the former gasworks site at North Lambton to house a new basketball stadium, which was supported by a majority of councillors.
Mr Kamper said while the government was open to alternative sites, they would need to be proposed by Newcastle Basketball and be considered in the context of costs and timeline, "noting the need for the association to vacate its current location to enable new housing development as part of the Broadmeadow Place Strategy".
The state government has ruled out including a basketball stadium in the Hunter Park sporting precinct at Broadmeadow, and Newcastle council voted to ask why it could not be included in the plans.
The City of Newcastle spokesperson said the council had raised concerns regarding parking and traffic, flooding and stormwater management, and impacts on local residents.
Mr Kamper said issues raised in the petition would be addressed in the planning process.