The 50-year-old Buttercup bakery will be partly demolished and converted into a hardware store.
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The site of the old bakery, which was built in 1968, is just across the road from Bunnings, on Wirraway Street, in Taminda.
Tamworth Regional Council gave a plan to convert the building the green light on January 13.
The upgrade is expected to cost some $875,000 and replace the area used for the manufacturing side of the bakery. The site is still used for distribution of bread, with one section vacant, according to planning documents issued with the project DA.
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Tamworth council signed off on the plan on the basis that the project was not contrary to the public interest.
"The proposal is considered to be satisfactory, having regard to the relevant legislation, council codes and policies and will not have a negative impact on the site, or community," council's development approval said.
"Accordingly, the application is recommended for approval, subject to conditions."
Conditions include that the building be built to national building standards, and require the developer to pay an $8,750 levy before opening, among other standard conditions.
Once complete the building will serve as a "hardware and building supplies warehouse and retail sales facility".
Buttercup Bakery produced bread for the North West region from 1968, until it closed its doors in 2016. Parent company Goodman Fielder slashed 30 Tamworth jobs and centralised production to Sydney and Canberra.
Goodman and Fielder is the company behind brands such as Wonder White and Helga's.
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