Luke Berry, the head of Thirdi Group which has plans with City of Newcastle for a mixed-use development on the site - the corner of Hunter and Railway streets in Newcastle West - said he had no concerns about it being identified as a possible light rail extension route.

As reported by the Newcastle Herald last week, Transport for NSW began investigating how the light rail might be extended from its western terminus out to Tudor Street earlier this year after state MP Tim Crakanthorp and Business Hunter CEO Bob Hawes expressed concerns in January about predicted development impacting a future extension.

A light rail line to John Hunter Hospital via Tudor Street was identified last year as the "most suitable" extension of the existing 2.7-kilometre line following a state-funded study. In a summary of the still unreleased study, Transport for NSW said an extension was not yet justified but could be in the future dependent on factors like population growth and development.

It did, however, acknowledge that a short section of the hospital extension route between the heavy rail and Hunter Street in Newcastle West would impact properties and said an alignment should be considered as a "next step".

The impacted area is a block zoned for buildings up to 90 metres and includes Thirdi's land.

A leaked map Transport for NSW produced as part of its recent investigations into how to proceed in this area identifies four potential routes, three of which would impact Thirdi's land in some capacity.

Other lots affected include Kennards Self Storage and the Salvation Army store, a property currently for sale with Knight Frank.

Mr Berry, who was unaware of Transport for NSW's investigations until last week, said Thirdi unsuccessfully sought meetings with the agency earlier this year but was of the belief a light rail extension "was not a priority", as indicated by the extension study's summary.

"There was no interest in our site, that's why we proceeded with our DA [development application]," he said.

"There is no request by the state government to reserve any transport corridors on or through Dairy Farmers Corner, so our DA should be assessed on the current planning controls."

Lord mayor Nuatali Nelmes raised concerns last week that the state government was yet to lock in one of the Tudor Street links and formally protect a corridor.

She said it would "not impede" development but ensure "that current and future proposals include and accommodate the light rail".

Doma, which has plans for two 100-metre towers about 200 metres to the east of Thirdi's land, was required - at the request of Transport for NSW - to leave a six-metre setback on the northern side of the multi-storey car park it built adjacent Newcastle Interchange to allow for a future extension.

The area has been landscaped but is ready to be transformed if required. However, no such provision for an extension exists between the car park's western end and Tudor Street.

Mr Berry said as a well-established developer in the city, Thirdi would be a supporter of extending the light rail but believes its land is not the only option for a line to run through the area.

"We want to support the investment of infrastructure in the Newcastle CBD, we think that's a great thing. Does it mean if Dairy Farmers Corner goes ahead that an extension can't? That's rubbish. There's so many options available," he said.

"If our site goes forward, and it activates that [area], it may actually help justify the case for the extension of the light rail.

"It shouldn't sound the end of anyone's hope for an extension.

"If anything, it might justify that it should be.

"It shouldn't be the death knell."

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