The government body that owns Orange's historic former nurses home, Caldwell House, says it is too risky to retain the building even though a planning panel has recommended it.
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A statement from Health Infrastructure said it was concerned about the risk of contact with friable asbestos which is in the Sale Street building following damage by vandals several years ago.
It has suggested it would support a "heritage interpretation strategy' to remember the building rather than keep it. The final decision on the building rests with the state planning minister Rob Stokes.
Health Infrastructure remains very concerned about the extent of friable asbestos
- Health Infrastructure statement
Last month the Western Regional Planning Panel recommended the building be retained and cleaned of the asbestos.
Orange City Council had sought to retain the building for its heritage values.
However, Health Infrastructure said a report it presented to the WRPP recommended demolition.
"Health Infrastructure remains very concerned about the extent of friable asbestos and the practicality of disturbing the friable asbestos through remediating the building to meet the required standards for adaptive reuse," it said.
"As part of the Crown DA, Health Infrastructure submitted to the WRPP an environmental and heritage study supporting the demolition of all buildings at the site. The study determines Caldwell House cannot be remediated due to the friable asbestos present in the building.
"Health Infrastructure recognises the community's connection to the old nurses' quarters and would welcome the opportunity to develop a heritage interpretation strategy for the site.
"The health, safety and wellbeing of neighbours and the local community is our highest priority."
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