Bega Valley Shire Council "vehemently rejects" any claims of "vindictive behaviour" as a major developer in Eden launches legal action in the NSW Land and Environment Court.
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Core Assets Development (CAD) said this week it was halting work on its $100 million "Sapphire of Eden" and redevelopment of Hotel Australasia amid council's "bungling of various consents" and "deceptive and misleading conduct".
Mark Toma, managing director of CAD said his company was "being continually blocked from progressing our developments through council's misleading directions and bias".
"We will shortly stop all works in Eden and lay off some 120 contractors, consultants, construction workers and staff if urgent action is not forthcoming."
CAD's complaints and launch of legal proceedings appear to be centred on a proposed roundabout on Imlay St and what it claimed were "continued delays in approvals" in allowing the developments to proceed.
In a statement to media, Mr Toma said the roundabout was funded "to the tune of $3.3million by state and federal government" and that council's former director of planning had written to CAD stating it would not need to contribute funds.
In response to ACM inquiries, BVSC acting director of community, environment and planning Emily Harrison said council had not received any such government funding to construct a roundabout at the intersection of Imlay and Chandos Streets.
Ms Harrison added that due to CAD's commencement of legal proceedings pertaining to council's "deemed refusal" of two modification applications, BVSC was "unable to comment further at this time".
However, Mayor Russell Fitzpatrick has previously responded to public statements by CAD saying "council vehemently rejects all claims that staff have engaged in vindictive or poor behaviour - this is categorically untrue".
"Council has been working with CAD since the lodgement of the development applications for the Sapphire of Eden development to progress this important project," Cr Fitzpatrick said earlier this month.
"Consents were issued in September 2021 for a hotel development and October 2021 for construction residential flat buildings. Both applications were assessed as priority applications, noting the significant employment opportunities this development would generate.
"As part of the assessment of the application for the residential flat buildings, council staff identified that additional information was required to address the impact on the Imlay and Chandos Streets intersection.
"A condition was included in the consent requiring additional traffic impact information to be provided for consideration or alternatively the default intersection requirement would be a roundabout.
"At the time, CAD was advised that council could consider an application to modify this condition based on updated traffic data.
"An application to modify the consent condition regarding the intersection upgrade was received on December 8 2021 and is currently being assessed by council staff."
While the two Eden developments have received prior approval from BVSC, modifications to the DAs have been lodged and are yet to be determined, council's DA tracker noting any consents as "pending".
"Council staff met with CAD to discuss the proposed changes to the Hotel Australasia consent in early December 2021 and advised that it would be necessary to submit a new development application due to the extent of the changes proposed," Cr Fitzpatrick said
"The development application was received early March and staff have commenced processing the application.
"The two applications currently being assessed are not considered priority development for assessment purposes, however they will be assessed by staff as soon as practicable to enable the projects to continue."