Shoalhaven councillor Greg Watson wants the council to come to the aid of the proponent of the West Culburra development.
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The developer is fighting a legal battle in the Land and Environment Court.
The Halloran Trust is seeking to overrule the Independent Planning Commission's refusal of the West Culburra Concept Plan development application.
The developer had sought approval for a large-scale, mixed-use subdivision on approximately 100 hectares of land it owns on the southern bank of the Crookhaven River at West Culburra.
The $40 million proposal, to be built in five stages over 20 years, comprises 650 residential dwellings of low and medium density, tourist accommodation, cafes and restaurants, three kilometres of foreshore reserve and 3.5 hectares of industrial development.
In October, in its Statement of Reasons for Decision, the IPC said the site was not suitable for the project in its present form.
"The Commission finds that the West Culburra area may be suitable for some limited urban development but that the project as currently proposed is inappropriate in scale," the statement read.
"The project has potential to adversely impact the Crookhaven River and Lake Wollumboola catchment's and furthermore has potential to irreversibly impact on Aboriginal cultural heritage, in particular the Crookhaven midden complex."
General manager Russ Pigg said council could seek to join the proceedings of the court case which would be quite expensive, requiring legal representation and expert evidence, or simply seek to make a submission as part of the court proceedings, which could be provided by a councillor or senior staff member.
On Tuesday night, a majority of councillors voted in favour of Cr Watson's recommendation to support the developer in court.
Shoalhaven mayor Amanda Findley was seething about it.
"Instead of letting a wealthy developer fight their own battles in the Land and Environment Court, Councillor Watson wanted council to join the court battle in support of the developer," Cr Findley said.
"It could come at an untold expense to the ratepayer.
"An amount of $200,000 was loosely talked about, and that will all be lost to council regardless of what the outcome is.
"Instead of focusing on something that council should be doing for the ratepayer, Cr Watson is wasting money and time that could be directed to getting other projects shovel-ready for funding.
"I am appalled at the decision council took and grateful that some councillors had the good sense to lodge a rescission."
Councillors Kaye Gartner, Annette Alldrick and Nina Digiglio lodged a rescission motion, to prevent Cr Watson's recommendation from coming into fruition.
The matter will be raised again at the ordinary council meeting on April 30.
Recommendation
That
1. Further to council's earlier action in resolving to support the West Culburra Concept Plan as a matter of policy, council once again reaffirms its decision.
2. Council seek to give evidence supporting the applicants appeal in the Land and Environment Court against the Independent Planning Commission's refusal of the West Culburra Concept Plan DA.