The Friends of Glebe Wetland group are hopeful a property developer will come to the negotiation table over a subdivision it claims encroaches on Bega's flying fox colony.
A representative from the group, Hugh Pitty, made a presentation to Bega Valley Shire councillors and senior executives last week about the 25-block subdivision on East St, which he claimed was "flawed" and "does not allow an adequate 50-metre buffer from the colony as required by NSW law".
The approved development application includes mapping of the buffer zone, but Mr Pitty and the Friends of Glebe Wetlands said the development site included trees that house the grey-headed flying foxes up to 30 metres inside the designated zone.
Mr Pitty said the development raised issues for the bat colony as well as prospective buyers of those blocks of land.
"The presentation [to council] went well and we were pleased that councillors asked a lot of questions, including councillors who we weren't necessarily thinking would support us."
Mr Pitty said by involving council they were hopeful that both the state government and the developer would come to the table and reach a "negotiated solution" rather than pursuing the possibility of legal action in the Land and Environment Court.
The group believes the state government should re-acquire a section of the land and remunerate the developer for his costs, as it was a state-owned area up to just five years ago.
Mr Pitty said the area near the Glebe Park had been held by the state as a "surplus site earmarked for education", but it was later sold at auction.
"We have a five-step proposal that involves asking the developer to submit a new application for a 20-lot subdivision," Mr Pitty said.
"The next step is that the state government resumes the land for the five lots that border the Glebe Park, then those five lots are added to Glebe Park by the Bega Valley Shire Council.
"The state government would then remunerate the developer for that loss of land."
The group raised concerns about the impacts of potential development following the government's indication it would sell the land in June 2016. The land was sold five days later.