SYDNEY-The management of Sydney Airport has cut the size of a planned retail development on land near the third runway and dropped plans to build a multiplex cinema.

The airport, which is located on federal land and not subject to state and local planning controls, had planned to build a 67,840-sm retail, aviation and business park. But these plans were opposed by the New South Wales (NSW) government and local councils because of the extra pressure it would place on roads around the airport and the possible impact on nearby retailers.

Sydney Airport Corp. chief executive Russell Balding today said that after public consultation the company had submitted a revised proposal to the federal government for a 50,400-sm development.

"We have listened closely to this feedback and, as a result, made appropriate changes to our initial proposal as a result of that feedback," he said in a statement. The development would include 2,412 parking spaces, down from the 2,808 previously proposed, Balding added.

NSW Planning Minister Frank Sartor said the state government would examine the impact the revised development would have on roads near the airport. "The NSW government remains seriously concerned by proposed commercial uses which have no relationship with, or connection to, airport activities."