The tree on a veterinary hospital property on the corner of William and Dora streets was described in a report to Orange City Council as a landmark in East Orange.

The report, on a development application to remove the tree, recommended it to be saved and undergo pruning.

However, councillors said they were concerned it posed too great a risk to stay.

Mayor Cr Reg Kidd said the tree was "magnificent" but it had been planted in the wrong place.

Cr Tony Mileto said retaining the tree could leave council liable for future damages.

Canobolas Family Pet Hospital owner Lisa Brisbane said in the council's public forum the tree was damaging the building and two large limbs had fallen.

"I feel there is a public liability risk to my staff, clients and the general public," she said.

"The tree, like all gums, has a bad habit of dropping limbs.

"It constantly drops small branches of approximately five centimetres in diameter. About two years ago it dropped a 25 centimetre diameter live limb in the car park of the building and crushed the back of the car."

She said recently a 30 centimetre diameter live limb fell and blocked the driveway.

"The limb was so large they [staff] were not physically able to pick it up and move it," she said.

Dr Brisbane said it needed to be cut up before it could be moved.

"Neither of these branches were sick or dead," she said.

Council asked for staff to prepare a report for the next meeting supporting the removal of the gum tree.