A plan to build more 742 houses on the North Lismore Plateau has been rejected by the Joint Regional Planning Panel (JRPP) .
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The development of the northern ridge has been a contentious issue for many years, with cultural heritage and biodiversity listed as the greatest concerns.
Three parcels of land make up the North Lismore Plateau - the northern, central, and southern sections.
The JRPP hearing related to the northern section, known as Allura Parklands.
The $39 million subdivision proposal comprised 742 residential lots, 2 neighbourhood business lots, 1 residue lot (future residential), 14 public reserve lots and associated infrastructure, and 45 new roads.
Lismore City Council recommended rejecting the proposal, listing 80 submissions to the panel, with 30 "unique objections".
In recommending refusal, the council stated: "The application fails to demonstrate compliance with, or provided insufficient information on, a multitude of development controls relating to the Lismore Development Control Plan (DCP). Further detail on specific controls are provided in the DCP table of this report".
"In relation to relevant matters of s4.15 of the EP&A Act, the information provided in the DA fails to demonstrate that the site is suitable for the development proposed.
"The likely impacts of the development, including environmental impacts on both the natural and built environments and impact to aboriginal heritage are not acceptable in its current form. The application is not considered to be in the public interest and the application should be refused."
The report acknowledges the location of the land "means it is of strategic importance to the rejuvenation of Lismore providing (predominately) flood free elevated residential land".
The council says the land was identified as a potential location for urban development for more than 20 years, and land was rezoned on April 15, 2016 land from RU1 Primary Production to include E2 Environmental Conservation, E3 Environmental Management, B1 Neighbourhood Centre, R1 General Residential.
The southern section is a 37-hectare parcel of land that was owned by the council and contains an old quarry.
In rejecting the decision, the panel said every aspect of the development needed further work, but denied a six month extension to the developers.
Acting General Manager John Walker told the ABC flood free land was needed in the region, but the proposal was "too ambitious". He said the council would work with developers to advance a new plan.
The developers indicated they may appeal the decision.