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Western Sydney council's developer deal paves way for Charlie Teo-backed hospital

Blacktown, in Sydney's western suburbs, is set to undergo a transformation. (Supplied)

A Western Sydney council has agreed to sell a large part of its CBD to developers, with plans for the site including a private hospital and research centre backed by controversial neurosurgeon Charlie Teo.

Blacktown Council announced today it had signed a multi-billion-dollar agreement with Walker Corporation, the company behind the $3 billion Parramatta Square project.

As part of the deal, the council has sold the site of its own chambers and civic centre.

Lang Walker, executive chairman of the developer, said the agreement would deliver a precinct "which will change the way people think about Blacktown".

Blacktown mayor Tony Bleasdale said the planned health precinct would add 5,000 permanent jobs to the fast-growing area.

He said Walker Corporation would spend about $2 billion on buildings including a hotel, retail and commercial spaces.

"It will revitalise the Blacktown city CBD," Mr Bleasdale said.

"This is the time for Blacktown city to become another Parramatta in terms of creation of jobs, the support of the local business community, retail industries and the like."

Blacktown mayor Tony Bleasdale and Lang Walker, of the Walker Corporation. (Supplied)

With more than 400,000 residents, Blacktown is the most populous local government area in NSW and is expected to balloon past 615,000 people by 2041.

Plans for the sale were first released in 2021, four years after Professor Teo approached the council to propose the Blacktown Brain and Spinal Institute (BBSI).

The council says the BBSI would be a "world-leader" in medical research and draw specialists and patients from overseas to Blacktown.

The mayor today said the BBSI was just "one component" of the bigger project, which he believes will drive more major investment in the region.

"We don't need any further $2 shops in Blacktown," he said. "We need  to have an image of Blacktown with plazas, restaurants, open-space areas for our communities where they can go with family and enjoy."

The neurosurgeon approached council to propose the Blacktown Brain and Spinal Institute. (Facebook: Charlie Teo)

Professor Teo has recently been embroiled in a disciplinary hearing before the Health Care Complaints Commission.

He denies wrongdoing and maintains that claims made against him were influenced by his "enemies" in medicine.

Last week, former mayor and current Blacktown MP Stephen Bali questioned the sale and raised concerns about a lack of consultation.

He wrote that the council should defer the decision and explore a range of visions for the future Blacktown.

The land being sold includes the council's chambers and civic centre on Flushcombe Road, meaning it will need to construct a new headquarters.

The site also holds Bowman Hall, the Leo Kelly Arts Centre and a section of a council-owned car park.

Tony Bleasdale said he hoped Blacktown's growth could mirror that of Parramatta. (Supplied)

It's unclear how much the council could will receive from the sale, as meetings surrounding the deal have been held in confidence. It previously was estimated by a council official that the land could fetch $100 million.

A new $40 million arts centre will be built nearby, funded by the state government's WestInvest program.

Mr Bleasdale said the council couldn't "afford to stand still" and rejected any sentiment the process had not been transparent.

"There's been massive community consultation ... and its had enormous support from the community," he said.

"To suggest otherwise is not correct.

"We have been transparent all the way through and really resent any allegation that this has been a rushed job."

Professor Teo was contacted for comment.

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