Narooma will get much-needed housing stock and the town's main street will get a facelift if a $16.3 million development goes ahead at 123 Wagonga Street and 121 Campbell Street.
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A fenced-off building that was used as a yoga studio currently sits on the site.
Documents submitted to Eurobodalla Shire Council as part of the DA detail a seven-storey mixed-development.
The development has three- to four-storeys of commercial, residential and visitor accommodation units and three levels of basement car parking.
It was designed by architect Chris Bombardiere of Liquid Design in Sydney's Campbelltown.
He said he and the owners of the site are excited about the proposed development.
"It is the culmination of months of work and consultation with Council, local businesses, residents and the Local Aboriginal Land Council.
"We have been encouraged by the overwhelmingly positive responses we have received all round," Mr Bombardiere said.
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The lower ground floor would have one commercial unit and three serviced apartments for tourist and visitor accommodation.
A further five commercial units are planned for the ground floor, along with three three-bedroom apartments.
Three more three-bedroom apartments and three two-bedroom apartments would be on Level 1.
On the top floor would be two four-bedroom penthouses.
All up, the development will add 11 residential apartments, three serviced apartments, six commercial units and 55 car parking spaces.
The owners, who live in Sydney, originally planned to retain and conserve part of the existing commercial building.
However, independent consulting engineers assessed the building as structurally unsound, at risk of collapse and an immediate safety hazard so it has been fenced off.
The building will therefore be demolished and the new development, Marquee Views, will have a "reinterpretation of the historical facade".
The documents said the development site has "sweeping views towards the coast and ocean, particularly the inlet and golf course".
Mr Bombardiere said the owner's brother used to live in the area but recently passed away and that the development is "emotionally important" to them.
If approved by council, Mr Bombardiere said construction would likely take between 18 months and two years.
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