An artist’s impression of the development on Market Street, in Merimbula. Image: Bega Valley Shire Council.
A 19-metre residential and commercial development is coming to the Far South Coast.
A development application (DA) consisting of 52 apartments and 15 retail spaces was initially assessed by Bega Valley Shire Council (BVSC) in 2022.
Council documents state that a lengthy review process began, resulting in several changes and opportunities for public feedback.
By May 2025, finalised plans were lodged with the council, before assessing officers, the applicant and the architects continued refining the proposal.
During a recent meeting, councillor Simon Daly said the council should consider how the development fit into its strategic planning, such as requirements around affordable housing.
“We’ve got 52 apartments going up … I understand that there’s no requirement for affordable housing in this development, but it would be good to know that if similar large developments were to come and change the landscape of our towns and villages, that that would be something that would be addressed,” he said.
In response, BVSC director of community, environment and development Emily Harrison said the residential apartments would increase housing supply and cater for households of different sizes.
“Yes, they’re not affordable by definition, but even just having that extra typology is a benefit,” she said.
Accommodation will be divided between three one-bedroom, 22 two-bedroom and 27 three-bedroom apartments.
The development will also include 15 shops across 2106 sqm and 116 on-site carpark spaces.
But councillor Peter Haggar said he was concerned it would become an “effective hotel”, used for short-term accommodation.
“Are there opportunities for councils to do something around this to make sure that we don’t end up with 52 Airbnb units on the coast?”
Ms Harrison said that rested largely in the hands of the NSW Government, but confirmed BVSC was “very closely” following the short-term accommodation cap in Byron Bay.
“We really need the State Government to do some more research and provide some policy levers … Then that’s something that we can consider, once we have some results from that, to see if it’s something that we think might be applicable here, pending [a decision from] the elected council.”
Concerns about the development’s suitability for the wider area were also echoed in councillor Helen O’Neil’s comments.
She asked how existing planning documents were utilised during the DA’s evaluation, noting there had been some public criticism of the CBD.
Ms Harrison said reviews into Merimbula’s building height and CBD density were ongoing.
The meeting heard that some strategic planning work had been paused because the council didn’t have the necessary staff.
There were concerns around the proposal’s size and height, compared to the rest of Merimbula’s CBD. Photo: Bega Valley Shire Council Facebook.
Cr O’Neil also asked staff to clarify how the development would fit into a multi-million dollar plan to revitalise the town’s CBD.
As part of the $2.8 million plan, traffic calming measures, upgrades to Hylands Corner and the design of a detailed CBD masterplan have been promised.
In response, Ms Harrison said work was ongoing on how the two would be balanced (especially around timing considerations).
“We are very aware of needing to integrate where we can … [We are] doing the best we can to make it a connected piece, and timing will play a key part in that.”
Mayor Russell Fitzpatrick asked how BVSC could ensure the development, once given approval, went ahead.
“What guarantees have we got under any planning proposal that we won’t end up with a hole in the ground and no development [at the site]?”
Ms Harrison replied that BVSC could revoke consent for a DA, but warned it could come with compensation or legal proceedings.
Mayor Fitzpatrick also noted that while the DA sought an exemption (coming in 1.065 metres taller than the council’s height limit), this would be mitigated by the site being in a “sunken area” of the town.
Councillor Mitchell Nadin praised developers for how they worked with the council to refine the “massive” development.
“It should be noted as part of this process that staff did work collaboratively with the applicant and got such a good result because of that commitment to better design.
“I’m not even just talking about aesthetics, we’re talking about parking spots as well, … [and] even the setback that was negotiated as well, the commitment for the thoroughfare.”
