NSW Premier Chris Minns has given the strongest hint yet of moves to kill off a controversial plan to bulldoze Australia’s busiest Woolworths store at Sydney’s Town Hall.

The City of Sydney has raised the shackles of shoppers, retailers and unions with plans to flatten the site and convert it to a public piazza.

The state government has now stepped in and referred the metamorphic proposal to the Independent Planning Commission, to determine if it qualifies as a State Significant Development.

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If so, it would allow the government to overrule the City of Sydney and torpedo the project.

“I’m not personally going to get involved and stop it,” Minns said.

“(But) those that live close to the city and need access to retail space have all said ‘this is going to be a big impact on us’.

“It’s in the heart of Sydney’s CBD.

“The union’s view is very clear and that is that you can’t replace like for like and that they’ve got hundreds and hundreds of workers that are on that site and have worked there for a long period of time. I do think we have to take that into consideration.

“The Chamber of Commerce has been really strong about it as well and retail space close to the city is an important part of any government’s consideration.”

The demolishing of Sydney’s Woolworths for a town piazza is under fire. Credit: City of Sydney

The $150 million concept would put a wrecking ball through a swathe of buildings on Park St including the historic Hotel Coronation, a discount pharmacy and multiple floors of overhead office space.

The biggest casualty would be one of Australia’s only two-storey Woolworths supermarkets.

The store, which has occupied the space since 1933, is mobbed by 6.5 million tourists and shoppers each year.

It’s also a Godsend for commuters grabbing groceries as they transit through the adjoining train and Metro stations.

The site includes a Big W store on its upper level.

Businesses and unions are leading the charge to have the concept shelved, with the Shop, Distributive and Allied Employees Association warning 1000 jobs are at risk.

Business Sydney has also decried the plan.

Woolworths says there are no equivalent sites in the CBD to relocate its 5000sqm supermarket.

The piazza plan is being spearheaded by Lord Mayor Clover Mayor, who’s pushing for the city to have a signature space where people can “come together, spend time and connect”.

The plaza would include fountains, pavers and native trees with public seating. It would double as an outdoor event space.