Shire mayor and Sharks CEO embroiled in Shoalhaven holiday rental property controversy

Cr Pesce says the works involved converting former stables, which included living quarters with facilities, into a detached habitable dwelling, without expanding the footprint or altering any structural components.

Cr Pesce said, after becoming aware the council did not have records from the time the plans were drawn up, he and his fellow owners had worked with the council and had submitted a development application.

In response to Leader inquiries, sparked by an ABC report on Tuesday, a Shoalhaven City Council spokesperson said, "Council is aware of structures on the property that have been constructed without consent and are currently undertaking compliance action as appropriate".

The spokesperson said a development application had been received and was being assessed. No further comment could be made at this stage.

Cr Pesce said in a statement he and his fellow property owners had received approval from Shoalhaven City Council to extend and convert the house on the property to a seven-bedroom home.

In addition, there were "stables / cottage", which had been a feature of the property for over 40 years, well before they had become the owners, he said.

"While this building may have historically been used to house livestock, living quarters with facilities were a feature of this dwelling long before we took ownership, as is clearly indicated in plans.

"The only works that have been conducted to this structure recently were to upgrade the internal facilities and do not alter the footprint or any key structural components of the building.

"Once it was bought to our attention that Shoalhaven City Council did not hold any contemporaneous records of approval granted to the former owners to build living quarters within the stables / cottage, my fellow owners and I worked with council planners in good faith.

"A DA was also submitted to council to consider approval for the use as detached habitable dwelling."

Cr Pesce said the ABC report, which stated the three-bedroom holiday home purchased in 2014 had been transformed into a sprawling eight-bedroom luxury rental without development approval, was "substantively incorrect", and he was seeking legal advice.

Mr Mezzatesta referred the Leader to Cr Pesce's response.