URALLA'S Historical Society (UHS) could pursue legal action over the approval of a controversial supermarket development application.
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The extension to the FoodWorks in the main street was approved five votes to four by Uralla Shire Council (USC) last week.
The decision casts a shadow over the viability of McCrossin's Mill Museum and Function Centre next door to the supermarket, UHS president Louis van Ekert said.
"The society regrets that this development has divided the community to the extent that it has," he said.
"The society has never been, and is not now, opposed to new development at the FoodWorks site.
"It has asked for consultation between itself, the council and FoodWorks on numerous occasions in order to achieve a design that is sympathetic to Uralla's heritage, to no avail."
The society provided the council with its legal advice that stated the council did not have the power to approve the development because it "lacked key documentation and failed to consider key issues" and wants to protect the city's heritage values.
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The council's general manager Kate Jessep said the average processing time for the 2019 to 2020 financial year was 26.5 days, with a median of 16 days.
"Uralla Shire Council Development Application processes and assessment considerations are undertaken under the provisions of the Environmental Planning and Assessment Act, Uralla Local Environmental Plan and the Uralla Development Control Plan," she said.