Sutherland Shire Historical Society hopes the owners of President Private Hospital will work with the council and community to find ways to incorporate Hotham House into the proposed redevelopment.
This follows Sutherland Shire councillors voting 10-5 not to rescind a previous motion to proceed with legal processes to have the building placed on the state's heritage register as an item of local significance.
"Hotham House is a heritage item of local historical significance to the shire and should be legally protected with the full force of our heritage laws," the society's president Bruce Watt said.
"Shire councillors who have stood by Hotham House should be congratulated," he said.
Liberal Councillors Carol Provan and Tom Croucher joined with independent deputy mayor Steve Simpson and Labor Councillors to vote against a rescission motion that could have led to the demolition of Hotham House.
"It was particularly pleasing to see bipartisan support for protecting Hotham House," Mr Watt said.
"Protecting our proud shire heritage should be above politics.
"The Gateway processes should now be allowed to run its course with a view to legally protecting Hotham House."
Mr Watt thanked local historians Pauline Curby and Kim Hatherly, who joined him in addressing the council meeting in support of Hotham House, as well as a strong contingent from the Historical Society who attended the meeting.
He also acknowledged "widespread community support".
"The historical society hopes that the owners of President Private Hospital can work with the council and the community to explore ways that Hotham House can be incorporated into any redevelopment of the hospital, Mr Watt said.
"This would be a win-win for protecting our shire heritage and providing more health facilities.
"The historical society would be available to assist in achieving such an outcome."
Macquarie Health Group's deputy chief executive David Wenkart, said, due to the site topography, it was not possible to achieve central, level and compliant access without demolishing Hotham House.
Mr Wenkart denied the proposal involved replacing Hotham House with a car park.
"The area currently occupied by Hotham House is being replaced by patient wards," he said.
Mr Watt said the original DA (development application) was for a car park to be built where Hotham House stands. Revisions had followed before the DA was withdrawn.
"As there is no DA currently before us, it is only Mr Wenkart's assertion at this stage that it would be replaced by patient wards," Mr Watt said.
"The issue for us was that if the interim preservation order lapsed then it could be demolished within days."
Mr Wenkart said, "Ultimately, the question needs to be asked of what will better serve the community's interest?"
"Is the community interest better served by preserving a privately held brick cottage that is not accessible to the public?" he said.
"Alternatively, is community interest better served by allowing the redevelopment of President Private Hospital, which is a scarce and vital piece of private hospital infrastructure that serves the needs of thousands of Sutherland Shire residents?"
