Kiama Mayor Mark Honey says the demolition of 47 Thomson Street should be a "wake-up call" to any council with heritage, or potential heritage, buildings.
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Mr Honey, who's great-grandfather built the home, was upset by the destruction of the 1800s-era building on Monday, July 20.
Although the demolition was not illegal, Mayor Honey said it stung.
"It's disappointing and deeply frustrating the developer took that attitude," he said.
"For our family, a bit of our heritage is gone forever. There was no empathy for the community, it was all about the golden dollar."
An interim heritage order placed on the property expired on June 30, however, at tonight's council meeting the building was to be determined a permanent heritage structure.
A Complying Development Certificate (CDC) was issued by a private certifier for the demolition of the existing dwelling. This was issued by the Private Certifier late last year.
As the interim heritage order had run out, and the CDC for demolation was valid, the owner had a three-week window when they could legally demolish the building.
The developer did not notify the council of the demolition.
Mayor Honey acknowledged that the council's process had taken too long.
"Between the fires and COVID-19, our heritage study has been on the backburner," he said.
"We will be taking a closer look at the heritage value of nearby buildings and the heritage study will come back to the forefront.
"This is a wake-up call for all council's with potential heritage buildings."
Kiama Council released a statement that claimed the heritage assesment had also been delayed because the owner of the property had initially refused entry into the property,
"Council is currently assessing a development application for the demolition of the dwelling at 47 Thompson Street and the construction of a multi-unit development at this site," the statement read.
"This application has not yet been determined by the council."