The news council approved a three-storey house to be built on Bermagui's main street has generated significant outcry in the community.
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The approval allows a dwelling at the back of Lamont St's commercial arcade to be demolished and replaced with a 9.45metre tall home that has views across Horseshoe Bay.
Numerous people outraged at the plans have written on an Australian Community Media social media page with comments like "a truly appalling decision" or "totally devastated", while others wondered if there was any way to prevent the development from going ahead.
Earlier, three submissions against the proposal had been made to Bega Valley Shire Council ahead of its meeting on April 8.
"The fact that this development may set a precedent for other developers is of major concern," Graham and Maree Day wrote in their submission.
"The whole character of the town stands to be changed irrevocably if this occurs."
Anthony Sherwin, whose mother lives behind the development, wrote it would be "premature" to make a final decision considering many of the town's elderly residents were confined to their homes due to COVID-19 restrictions and without internet access, preventing them from making their own submissions.
He also wrote the development lay within the boundary of a Lamont St address, not Sherwin Lane, so height measurements taken from the latter to inform the plans were "misleading".
The three-storey development is 9.45metres in height so complies with council's 10-metre maximum, but it sits above the arcade on Lamont St and the measurement of its height has been taken from Sherwin Lane and the top of the arcade, not from the arcade's base.
But founding principal of Tobias Partners Nick Tobias, an architect from the Sydney practice behind the development's plans, says he hopes very much "to provide a building that people look back on in the future with a great sense of pride".
In his submission to council, Mr Tobias said he understood the community's concern, but it was an application that complied with the controls, except for "one little piece of the building that is outside the [10metre] height control" on its Lamont St side.
"It's a very small part of the building that has no impact on views, bulk, overshadowing, any amenity impacts whatsoever, and it's important to note that," Mr Tobias said.
"I think it's very difficult for a community when a proposal like this is put forward that is complying... because it's a difficult thing for a community when there is an impact.
"There is a new building that will be there, there will be some amenity impacts - they're unavoidable and they're unavoidable for any building that comes even close to complying with the controls, and that's what we've done."
In response to a reader on an ACM social media page, Bega Valley Shire Mayor Kristy McBain said she understood many people may be opposed to the development, but it complied with the zoning.
"The planning laws are pretty clear and this is allowable," she said.
"If we didn't approve it we could have been in the Land and Environment Court battling with an owner for a development that is allowed in the commercial zone."