Citing concerns the 66-storey building was"inconsistent with current strategic planning for the site and locality and fails to promote the orderly use and development of land",the commission sided with the Department of Planning,Industry and Environment's negative assessment of the plan.
The three-member panel said the proposal would"result in unacceptable built form,including a tower of a height which is overly obtrusive and that will result in unreasonable and unacceptable impacts with respect to view loss,visual impact,and overshadowing".
Mr Stokes said he was"pleased a decision has finally been made on The Star’s proposal and that the door’s not closed to a new hotel and apartment tower in Pyrmont."
He said the Berejiklian government was"working on a bold new masterplan for Pyrmont that will allow it to be the city’s next entertainment and innovation hub.
"We’re keen for The Star to collaborate on this work to ensure any new development is delivered as part of a strategic plan for a revitalised peninsula."
The commission's refusal to support the project sets the stage for a possible legal showdown if the casino group seeks to challenge the decision in the NSW Land and Environment Court.
A spokesman for The Star Entertainment Group said they were"still digesting the full findings before we announce next steps".