The development application, which will allow the business to expand into paediatric dermatology, women’s health dermatology, sclerotherapy, Mohs surgery for skin cancers and additional training and research, was originally put to councillors in October.

However, they chose to defer it until they made a decision on parking contributions.

Contributions for businesses who failed to provide adequate parking on-site were waived in November 2012 and reinstated at a 50 per cent rate in November.

The report to councillors recommended approval for the application, noting almost $103,000 would be charged for parking contributions.

Developer Peter Basha spoke on behalf of the applicant at the meeting, urging councillors not to charge the money because the application was lodged in good faith when the contributions were zero.

“[The contributions] represent a large proportion of the project and it’s highly unlikely it will proceed. This is due to the expense of medical equipment,” he said.

Councillors waived the contributions due to the lodgement date.

“Whether the business is viable, that’s got nothing to do with council, but the only thing I can’t support is if the application was before the decision on where we were going to go with parking,” mayor John Davis said.

“I do believe we have every right to charge, but that’s no way to do business.” 

Deputy mayor Chris Gryllis suggested the council had been “a bit naughty” by deferring the application in the first place.

Orange Dermatology owner Dr Derek Davies said he was grateful the council considered the proposal as it was lodged prior to the policy change. 

The new facilities will be provided in a refurbished building to the north of the existing business, with pathology and offices included.

“We’re always looking to expand services to rural patients because we understand the difficulties of accessing them out of Sydney,” he said.