More than 100 people turned up to the Land and Environment conciliation conference for Sunshine Lodge on April 28.
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Six people spoke in front of Commissioner Horton on why the proposed plans for Sunshine Lodge, 5 Alice Street, Mittagong, should be rejected.
In attendance from the council were Councillors Ian Scandrett, Larry Whipper and Gary McLaughlin.
Jisella Corradini-Bird, the solicitor representing Wingecarribbee Shire Council said that conciliation conference was terminated on the day, however the reasons why are confidential.
The matter will now go before the courts at a date to be decided at the directional hearing.
A conciliation hearing is held in front of a commissioner to help resolve or narrow the dispute.
In this matter, a resolution was not reached.
The building has been abandoned since a fire in 2013 and was recently bought in 2016. It has been heritage listed.
Current owners wish to demolition the current structure and build a residential flat building and a boarding house to house 102 people, with 28 parking spots available underground, and a drive way interfering with residential property.
There will also be no visitors parking on the premises.
Sunshine Lodge campaigner Tim McCartney said that residents were opposed to 90 per cent of the plans put forward, including the over-development of the site and the demolition of the facade.
If the the DA were to be rejected, the owners would have to reconsider their plans.
Council were taken to the Land and Environment court over Sunshine Lodge after a deemed refusal.
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