At Tuesday’s meeting, Kiama councillors endorsed council staff’s decision to refuse the development application.

A DA was submitted last year for the proposal, which has an estimated cost of $7,558,000. 

The proposal involves the demolition of the existing guest house building and also the construction of a four-storey building containing guest accommodation and two levels of basement parking at 31 Bong Bong Street Kiama, and also additions and refurbishment of the existing Grand Hotel, including the addition of a fourth storey at 49 Manning Street.

Within the proposal, the ground floor of the Grand Hotel would be retained as a bar area, with a main/front bar, gaming room, smoking room, back bar and enclosed beer garden. 

The first floor would be converted into a restaurant and contain the commercial kitchen for the hotel. As part of this proposal the original double storey high covered verandah would be reinstated.

The second floor would be converted into a number of adaptable spaces that could be used for private functions.

The applicant sought to ‘reinstate’ a third floor on the Grand as well as other architectural features to the Grand’s façade.

According to council’s report, reasons for refusal included the proposal breaching height limit; negatively affecting and not conserving the heritage significance of the Grand; and not providing sufficient car parking spaces.

A report was submitted to council as the cost of works exceeds $2 million, and also to inform council that proceedings have commenced in the NSW Land and Environment Court.

“Council requested further information from the applicant on January 17, 2017 as the submitted plans presented several areas of non-compliance,” council’s report said.

“Council requested that the above matters be addressed within 21 days. On February 7, 2017 the applicant contacted council requesting an extension of two weeks to provide the requested information.

“Council granted this extension of time. Following this correspondence, council officers made numerous attempts to contact the applicant seeking an update on the requested information.

“On March 15 council was notified that the applicant had assumed that the DA had been refused and in accordance with… the Environmental Planning and Assessment Regulation 2000 commenced proceedings in the NSW Land & Environment Court.”

Kiama Mayor Mark Honey said “there were just too many issues” regarding the proposal, but “council’s enthusiastic about that site being redeveloped, but within the parameters that are laid down by the law”.

The owners of the Grand are the Salim Group, who have operated it for more than a decade. 

The owners were contacted for comment.