Byron Council: Mullumbimby Hospital land set for ‘englobo’ sale to state government
Community groups have slammed Byron Shire Council's unanimous decision to sell the former Mullumbimby Hospital site, claiming the process contradicts decades of grassroots preservation efforts.
A Northern Rivers council has voted unanimously to proceed with a preferred option of an “englobo sale” of a former regional hospital site to the NSW state government, amid strong community backlash.
The decision claims the sale of the land will be used for the development of social, public, affordable and Indigenous housing.
It comes off the back of Byron Shire Council considering a confidential developments options report and development strategy.
In their November ordinary meeting, the council noted the preferred development model of an “englobo sale”.
The approach was outlined in council documents as achieving the “best balance of development quality, community benefit, and financial return, while minimising risk and complexity for council”.
Council had previously received funding from the Commonwealth Government’s Housing Support Program to explore options for facilitating housing development on the site, the meeting heard.
In a letter submitted to council by the Mullumbimby Hospital Action group (MHAG), a spokesperson said: “If it weren’t for many decades of dedicated work by the community the site would not be owned by Byron Shire Council.”
“Please note that MHAG was close to an agreement with NSW Health to remediate the site and return it to the community. Action by Ben Franklin led to the site being sold to Council for $1.”
The group claim there has been no community consultation, calling the process “entirely opaque”.
Over the past five years, the former Mullumbimby Hospital site has been the focus of extensive planning for social and affordable housing.
Acquired by the council for $1 in 2017/18, the period since late 2020 has seen significant community consultation and strategic development.
By November 2022, a site strategy and urban design protocol were adopted.
A planning proposal in August 2023 to rezone the land and increase building heights to 11.5 metres, was aimed at achieving up to 225 residential dwellings with 20 per cent dedicated to affordable housing.
Final approvals for contamination remediation were also secured.
“We’ve had to cover the remediation costs from the asbestos … it’s taken a lot of time (to remove),” Cr Lyon said.
As part of the proposed sale, council aim to recoup some of the $6 million borrowed for demolition and remediation costs, prioritise collaboration with state agencies.
The resolution requires Council to invite the Minister for Housing, Rose Jackson, and representatives from relevant State Housing Agencies; Homes NSW and the Reconstruction Authority, to a round table discussion.
The roundtable is designed to discuss council’s recommended Development Model, along with the Built Form and Housing outcomes identified in the current Site-Specific Development Control Plan (DCP).
The outcome of this roundtable will return to Byron Shire Council’s April 2026 Ordinary Meeting.
Byron Shire Mayor Sarah Ndiaye said the project would require “a big lift to deliver” but is “aligned” with the community’s vision and housing objectives.
“We cannot forgo one of our only opportunities for public and diverse housing that’s close to town, on flood-free land, in our Shire,” she said.
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Originally published as Byron Council: Mullumbimby Hospital land set for ‘englobo’ sale to state government
