Allswell Communities have adapted their development application for Coastal Palms Holiday Park in Shoalhaven Heads, which will see holiday vans replaced with retirement home villas.
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The initial plan was to replace 122 holiday van sites with 80 retirement living plots.
However, in response to Shoalhaven City Council’s feedback about the impact of the development on homes adjoining the eastern side of the lot, 20 short-term sites will be retained.
It is likely 110 vans will be destroyed or moved in the upheaval.
It is understood 20 vans will stay because if the permanent villas were to go up on the boundary fence, the buildings would cast too much shade on the backyards of Jerry Bailey Road properties.
The development application has not been approved by council yet, but with just a couple of assessments left, including a one from the RFS and Shoalhaven Water, a decision is expected to be reached within the next few months.
Tenants paid up to $35,000 for a stake in the village – more than $2million in total – a cost they will not be able to recoup.
Coastal Palms tenant Selana Clark, who is expecting her eviction letter any minute, feels helpless about the matter.
“There is pretty much nothing we could have done to prevent this,” Mrs Clark said.
“It’s really disappointing.”
Under NSW law, long-term casual occupants of a holiday park have the right to rent a site for 12 months, after which time the park owner can order them to vacate the site with a minimum of 90 days' notice.
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