An initial development application for a 335-lot residential subdivision on Redlands and Cemetery roads was lodged with council more than a year ago, but has never been presented to councillors for determination.

It was sent to the NSW Land and Environment Court in December last year on the request of the developer due to delays with mediation talks between the developer and council breaking down in June.

The court hearing began this month with an offer from the developer to enter into a voluntary planning agreement (VPA) made beforehand.

Council rejected the offer 8-1 on Tuesday with staff recommending refusal on the basis of potential exposure to much greater costs beyond the $2.8 million put forward for works including upgrades to the Corowa sewerage treatment plant.

Cr Andrew Kennedy was the only councillor to speak in support of accepting the developer's offer.

"We've got neighbouring shires doing their own subdivisions encouraging people to come to town ," he said.

"But we seem to be encouraging them not to come here.

"At the Silverwoods estate (in Yarrawonga) all the blocks are 550 square metres and they are selling like hot cakes.

"Not everyone wants a 1000 square metre block of land.

"I don't know why we put so many hurdles in front of everyone who tries to invest.

"We've probably got a dozen closed shops in the Corowa main street. If you've got an extra 1000 people here those shops might open up again."

IN OTHER NEWS

Cr Gail Law conceded the council could be viewed as being "anti-development".

"But we can't have a development that is not properly made," she said.

"What would be the point of having all those houses there if Cemetery Road is going to flood every time it rains?

"If a developer wants to develop land they have to realise they have to pay for the infrastructure that is required to make that land liveable."

Director Steve Carmichael said revised plans showed a re-alignment of Cemetery Road eliminating parking in front of the cemetery.

"I've seen large funerals in Corowa where that whole street is taken up with parking," he said.

Cr David Longley said the developers had hoped to "ram through" their plans, but praised staff for identifying concerns.

"When this is all over we should go them for costs," he said.

Cr Paul Miegel was also critical of the developer.

"Everyone has an opinion on it but we haven't had a chance to discuss or debate it," he said.

"That opportunity was taken away when they went to Land and Environment Court.

"Our only opportunity is to discuss this letter of offer, this VPA, and that in itself shows the scant regard that they have had for council."

Deputy mayor Shaun Whitechurch said the town must grow.

"Very few are saying let our town be a sleepy town," he said.

"At some stage the land will be developed. It's not going to be turned into potato fields."

Corowa's Richard Sargood said there had been a "contempt of process" from the outset.

"They have put up proposals in this VPA that blind Freddy could see through in trying to cut their own liability for necessary infrastructure upgrades while exposing ratepayers and council to an unlimited, unfunded financial future that could be a noose around our necks for years to come," he said.

The matter will return to the court for a decision.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: