THE council has been left "substantially" out of pocket after losing a court appeal on a Longyard golf course development
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The Land and Environment Court decision means a 99-lot "manufactured home" development on the golf course will go ahead despite the council voting unanimously against the proposal.
Tamworth Regional Council planning director Brent McAlister said the development exploited a planning loophole and cast doubts over future sporting centre of excellence expansions.
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"We never envisaged you could get permanent accommodation, essentially, within a recreation zone," he told the Leader.
"To be honest, this development has exploited a NSW planning law."
But the bigger concern for the council was the prospect of a high-density residential area right next to proposed sporting centre of excellence developments.
"The essential thing council were concerned about was the detrimental impact on our substantial investment in the sports and entertainment precinct, there is hundreds of millions of dollars of investment in there," Mr McAlister said.
"And now we have got a reasonably intense manufactured homes estate right on the border of that precinct.
"In NSW, the complainer has the rights; so someone can't sleep at night and complains, suddenly there is issues around having to reduce hours and events."
Current planning laws allowed for manufactured homes and caravan parks to be placed in private recreation zones.
The council tried to change its local environment plan to close this loophole.
The NSW planning department blocked this move while the court case was ongoing, but the council has signalled it will pursue the change again and implement a development buffer around the sports and entertainment precinct.
Mr McAlister said "a lot of councils" had similar concerns the loophole and said it was something the state government should stop.
The number of lots in the proposal has been reduced from 120 to 99.
Longyard owner John O'Rourke welcomed the decision and said it would ensure the golf course had a future.
In a written statement to the Leader, Mr O'Rourke said the "luxury over-50s development" was vindicated with the commissioner's decision.
"It is unfortunate the court process was so costly, especially to Tamworth ratepayers," the statement read.
Mr O'Rourke said the development was "carefully designed" to provide extra water to the irrigate the golf course and supply a new income stream for the business.
"This has been a great week for Longyard Golf, with rain filling the irrigation dams and the court verdict arriving," he said.
"We are now looking forward to a bright future for our course, where it can thrive, and golfers and residents can continue to enjoy it for years to come."
Mr O'Rourke thanked members and locals for "their support throughout this difficult time" and staffers "for keeping everything run smoothly".