A controversial 293-home development proposed for West Culburra was approved and mayoral candidate Paul Green said he is "100 per cent behind it".
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Mr Green, who is not a current Shoalhaven City councillor but held the position of mayor from 2008 to 2012, said the development would breathe life into the village by bringing new shops and jobs to the area.
"Many of the community members out there want this development," he said.
"It means new shops and probably a new service station and all sorts of things that people don't have to come into the town for, because they've got sustainable community population to drive outcomes in their local community."
Culburra Beach General Practice stopped seeing patients at that practice last month and merged with Junction Street Family Practice.
Mr Green said had the development been approved earlier, this may not have happened.
"They've just closed down a local doctors practice down there and now they have to come into town," he said.
"That's unfortunate and sad."
Mr Green said the housing development will bring more opportunity for locals, especially young people, to find accommodation in the village they grew up in.
"It's very hard to allow someone that's lived there all their life to find more accommodation in the village they were raised in as they get older because there's a lack of options and the Sydney market comes through," he said.
"So I think this is a welcome outcome for those who want to live in Culburra Beach and enjoy it, particularly those that want to see the life out there."
During a Land and Environment Court hearing in May, locals gave plenty of support for the development, with some residents expressing housing availability was an issue in the village.
Others, however, said it would cause damage to Aboriginal Heritage sites, the environment and wildlife.
Local oyster farmers said storm runoff from the development adjacent to their farms would contaminate their supply.
Current Shoalhaven Greens Mayor Amanda Findley also expressed concerns over damage to water quality.
"I've got grave concerns that the development at West Culburra can't actually meet the water quality guidelines that are required," Cr Findley told the South Coast Register.
"We see all over the Shoalhaven where there's fresh building works, we quite often see during heavy rainfalls, the failure of silk traps to catch runoff.
"I don't have confidence that the developer will be able to not pollute the waters and that that will have an impact on the Shoalhaven River oyster farmers."
Land and Environment Court decision
The Independent Planning Commission (IPC) and developers, Sealark Pty Ltd, entered into an agreement at a Land and Environment Court (Court) hearing in October, with the decision made by the Court on Wednesday, December 1.
The decision outlines that prior to construction, Sealark must prepare a staging plan in consultation with the Shoalhaven City Council and must also engage with community members, including the Aboriginal community, affected landowners, schools and members of the oyster community.
The Court ordered that construction must not begin without community consultation that has been approved by council.
The Court also ordered that Sealark must appoint an environmental representative and that they must comply with the NSW Oyster Industry Sustainable Aquaculture Strategy and Healthy Estuaries for Healthy Oysters Guideline.
There must also be an Aboriginal Cultural Heritage Management Plan, prepared in collaboration with representatives of the Aboriginal community by a "suitably qualified and experienced person".
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