A $4.45 million three-storey residential apartment block at the western end of Dean Street has been given the green light by Albury Council.
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Deputy mayor Amanda Cohn confirmed the apartment block wasn't her "cup of tea", but still moved the development application be approved.
"Unfortunately I cannot make a planning decision based on my own tastes in architecture," she said.
"Albury is going through a transition from being a country town to a regional city.
"We need to have medium density residential development close to the CBD and this is a prime location.
"I understand that is always going to create some conflict with people who have lived in that area for a long time."
Cr Alice Glachan queried whether the footprint of a taller residential development approved for the site, but didn't proceed was the same and the implications of any shadowing on neighbouring properties.
Planning and environment director Michael Keys confirmed setbacks were increased in response to previous concerns and permanent screening would also be fixed to provide additional privacy with neighbours.
A statement of heritage impact was also required to be completed by developers due to its location within the Bungambrawatha Creek heritage conservation area.
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