MidCoast Council has given an assurance a development off Grey Gum Road, Tuncurry is operating within its approval.
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To make way for a proposed seniors' living, work has begun to clear 40 hectare of the 160ha site.
MidCoast Council liveable communities director, Paul De Szell, says that the clearing is within an agreed development site.
The remaining 120 hectares has been set aside as a public reserve and for conservation purposes, being rezoned to E2, the highest level of environmental conservation zoning, Mr De Szell said.
This has occurred within an executed voluntary planning agreement reached between the former the Great Lakes Council and the applicant, he said.
"The area identified for conservation possesses significant ecological and water quality values, including a long frontage to the lower Wallamba River.
"The voluntary planning agreement was satisfied that the conservation area was sufficient to offset the impacts of clearing the development area.
"The agreement sets the terms for the conservation of the offset area as well as the approval of works within the development area.
"The clearing work has followed an approval pathway and has been delivered in concert with a significant community environmental outcome - it should not be viewed in isolation.
"The conservation area will be dedicated for public conservation and is a valuable habitat for vegetation and biodiversity, including threatened species."
However, Red Head resident, Graham Taylor said he was disappointed with the proposed development.
"It is heartbreaking to see that type of destruction," Mr Taylor said.
"Surely we can do better than that.
"I wonder if the development of a bio-diversity strategy would help us make better planning decisions?"
Mr De Szell explained development approval had been complex, stretching back to 2002, as council had significant concerns with the high ecological value of a significant part of the land and the impact clearing and development would have on water quality.
An initial development application for a seniors living development in 2005 was refused by council.
In 2006, the applicant began legal action in the Land and Environment Court, appealing council's refusal.
The conservation area will be dedicated for public conservation and is a valuable habitat for vegetation and biodiversity, including threatened species.
- Paul De Szell
The complex matter was heard before the court and included input from council experts and a range of biodiversity and water quality experts engaged by the parties.
In 2008, the Land and Environment Court matter was determined by agreement of the court and the parties.
That is, a seniors living development was approved but was subject to a range of controls.
"In essence, the court outcome resolved the development and conservation balance for the entire 160 hectare landholding, and did not just resolve the seniors living development in isolation," Mr De Szell said.
"It approved an area for development and an area for conservation.
"In accordance with the agreement, the landholders submitted, gained approval and are now actioning works on the approved development area - hence the current clearing work."
Council was notified work would begin in June 2019.
The pre-commencement requirements of the conditions of the consent were satisfied by the applicant, including engineering and environmental matters and included documentation on ecological clearing and hollow-tree supervision protocols.
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