Orange's historic Caldwell House old nurses' home has been recommended to be saved after a government planning body ruled in favour of its preservation.
The 1937 building was facing demolition after its owner Health Infrastucture, a state government department, said it was so riddled with asbestos after being attacked by vandals, it could not be saved.
However, after three months deliberation the Western Regional Planning Panel has ruled in favour of arguments to preserve the Sale Street building.
It will recommend the building be saved to the NSW Planning Minister Rob Stokes.
Private developers will be queuing up to work with a site that bigCr Reg Kidd, Orange mayor
The adjacent former nurses quarters on the corner of Sale and Dalton streets will be knocked down.
Orange mayor Reg Kidd said Caldwell House was "an important building for the heritage of Orange" and was pleased it would be saved.
"Despite the fact that the building has serious asbestos problems, the council has steadily argued that these problems will have to be rectified whether the building is saved or demolished," he said.
"I believe the minister will take a close look at this recommendation and acknowledge that now that the new DPIE headquarters has opened across the road, there is huge value for the government in keeping the heritage building so it can be incorporated in a new re-use, by the government or a private developer.
"Private developers will be queuing up to work with a site that big right across the road from the head office of a major government department. The heritage element will be the showpiece of the site."
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