Albury developer Travis Barker has submitted a development application with Albury Council for the demolition of an existing car wash in Drome Street and replace it with a service station and convenience store.

The project has an overall price tag of $1.25 million.

The subject land, which also contains a 24-hour McDonalds restaurant, is sandwiched between the Harvey Norman complex and where Bunnings plans to builds its mega-store including trade centre.

Mr Barker also has development approval for a bulky goods outlet nearby.

He said he was in discussions with a major fuel outlet to operate from the site.

The 1482-square-metre site, which is on the corner of Alexandra Street, will have underground tanks installed with a total capacity of 180,000 litres.

Tanks will be pre-fabricated off-site and will be transported before their installation which is anticipated to take a week.

The proposed hours of operation are 24 hours a day, 7 days a week with a maximum of two staff members present at any time.

Eleven car parks are proposed with demolition of the car wash included in the submitted development application.

The car wash was created in 2007.

Meanwhile, the Bunnings Warehouse proposal will require the approval of the Southern Joint Regional Planning Panel with its price tag being more than $10 million.

Due to Albury Council having no interest in the site it's likely council staff will prepare a report for panel approval.

The Bunnings proposal includes land occupied by the Kimberly Clark factory which closed last year.

The panel's most recent decision in Albury was approval of changes to the Volt Lane motel and Kiewa Street carpark.

Motel changes enabled the addition of 15 more rooms for guests.

The existing Bunnings Warehouse site in Young Street was developed by John Colquhoun and associated companies in the early 2000s.

It was previously the Dalgety wool stores