Denoc Holdings managing director David Nock submitted plans in September 2015 for a 28-room hotel extending from the rear of the Byng Street property, which drew the ire of the neighbours due to its bulk and scale, non-heritage design features in the extension and plans for traffic to exit the property via Hill Street.

Councillors rejected the development in May on the same grounds.

But on Friday, Mr Nock revealed updated plans, cutting six rooms from the first floor and redesigning the roofline from a flat roof to a pitched roof, which will be broken up into three sections.

The floor areas will be cut by 98 square metres and the report concluded the changes would reduce overshadowing on Hill Street properties.

The amount of glazing will be cut back on both sides of the building and Hill Street exit will be taken out.

The court allowed fresh plans to be considered after terminating mediation proceedings in November.

Mr Nock described the compromises as substantial and he wanted to resolve the issues raised by the council’s town planning, heritage and traffic experts.

“I feel like I’m back to square one and I’m not happy about that,” he said.

“I thought we got off to a pretty good start [with the neighbours] but we obviously didn’t and I’m sorry about that.”

The plans will be advertised for community comment at the council chambers from February 1-15. 

A court hearing has been set for May 9 and 10 – Mr Nock said subject to the consultation outcome, the proceedings would be on the updated design.

“If we reach agreement on various areas, we can cut down the issues and shorten the hearing,” he said.

Despite the delays and court proceedings, Mr Nock said it was still a viable development and he wanted to see Yallungah preserved.

“This sort of accommodation is non-existent – is Orange going to be a town of basic motel accommodation? It’s got to grow,” he said.

The proposal spurred a revival of Orange City Council’s infill development policy, which was drafted in 2012, but never implemented.

The policy directs developments in heritage urban areas to be consistent with the buildings around them, including size, setbacks, colours and materials.

Scott Gilbank was on the original committee and encouraged people to make a submission to the council by the February 3 cutoff. 

“You’ve got nothing to lose by placing a comment if you feel strongly,” he said.