Earlier this year plans for a two-storey facility in Guy Street which would have attracted 25 additional medical professionals were presented to council.

But delays in advancing the project has meant prospective tenants have dropped out, triggering the need for a redesign and subsequently a second development application.

Councillors on Tuesday rejected a staff recommendation to not grant financial assistance to the medical centre developer and instead will contribute $14,500 or 50 per cent of all associated costs in preparing another development application.

The funding committed by council will come from an unspent portion of community grants.

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Mayor Pat Bourke said the demand for health facilities justified council agreeing to the developer's request.

"It is one of the most important things in our community," he said.

"The pressure being put on our hospitals (is significant)..

"Albury-Wodonga is screaming out for money for expansions and we just need to dig deep.

"You can say it's a private business, but this doctor is servicing the community like no other.

"He is expanding facilities that are only going to make things better in the whole Corowa region."

Mulwala-based Cr Andrew Kennedy also supported the financial contribution.

"We are the only major town in this shire that hasn't got a doctors' surgery, we haven't got childcare facilities," he said.

"I'm going to be very passionate about that in the future hopefully if I get back on council.

"What they are wanting to build is very exciting for Corowa."

Director Susan Appleyard said some of the delays with processing the original development centred around onsite parking and traffic management.

A request to vary the onsite parking requirements from 72 down to 37 was agreed to by council.

"It is not an easy process to go through and it's time consuming," she said.

"It is not a straight forward development and it's seeking variations."

Cr Gail Law, a former chair of the Corowa hospital board, said the request was justified..

"It will mean we will most likely get more doctors with visiting rights to the hospital," she said

"We have supported Oaklands and Urana doctors, but they are a much more area of need than Corowa."

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