ALBURY and District Historical Society remains opposed to the tweaked plans for heritage-listed Kiewa Street property Meramie.
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The historical society has met this week and remains "dismayed" demolition was the only option even though a thorough probe of the building's potential re-use had been undertaken.
"It is regrettable that Meramie's condition has deteriorated despite heritage controls intended to 'encourage the conservation and enhancement' of listed items," society president Greg Ryan said.
"Removing Meramie would, we believe, threaten the rest of the Bonegilla group and would require re-thinking about whether the conservation area continues."
Mr Ryan said the society believed Meramie's heritage grading remained high and still had a substantial presence in the heritage.
"There have been no changes to the way it is presented at the street front since when it was first listed as a heritage item or when it was included in the Bonegilla group," he said.
"It was assessed as heritage worthy then and still is."
The previous proposal for two four-bedroom homes to replace the property built in the 1890s for Mr Griffith before being converted to a private hospital was withdrawn 12 months ago.
Meramie's most recent use was Charles Sturt University student accommodation.
"The building had a strong connection with the development of the Murray Valley region and played a significant role in Albury's social and medical history," Mr Ryan said.
"The society is unconvinced that the replacement buildings fit well with the rest of the precinct.
"None of the other buildings are square-shaped.
"They are a mix of building styles."
He said Meramie's owners knew Meramie was heritage listed when purchased.