The six-year battle to save heritage-listed Hotham House at Kirrawee has been lost.
The Land and Environment Court has upheld an appeal against the NSW Independent Planning Commission's refusal of the President Private Hospital development application (DA) by Macquarie Health Corporation.
The commission refused the application in December 2022 because it included demolishing Hotham House, but advised the court in March 2024 it would not be contesting the proposed redevelopment.
Hotham House was built in 1912 and a ballroom, where dances and parties were held, was added the following year.
The house was part of the Hotham Poultry Farm, which was at the time the biggest in the state, with about 6000 laying hens.
The building was proposed for inclusion on the shire's heritage list in 1993, but that did not proceed.
During 2013 and 2014, Hotham House was again proposed as a heritage item, but at the time an independent review did not support heritage listing.
Sutherland Shire Council successfully had the building heritage listed in 2020 while opposing demolition, which was proposed in the initial plans released in 2018.
The $87 million redevelopment will include construction of a new three-storey building with two basement car park levels, providing inpatient accommodation, therapy and rehabilitation facilities, and support services.
The number of surgical and rehabilitation beds will increase from 45 to 110, and a new mental health facility with 72 beds will bring total patient beds to 182;.
The works will also include refurbishment of the wellness centre, comprising a rehabilitation gym, change rooms, and hydrotherapy pool; a new site linkage between the wellness centre and hospital; and upgrade of the existing three operating theatre suites and the construction of a fourth operating theatre and new recovery and sterilising facilities.
Local historian Kim Hatherly, who has been at the forefront in the fight to save the building, said, "Ever since Hotham House first came under threat in 2018, Sutherland Shire Historical Society, local residents and the public have strenuously lobbied for the house to be preserved in the hospital's redevelopment plans".
"Macquarie Health had a wonderful opportunity to incorporate a sensitively repurposed heritage item in the new hospital design.
"One of Gymea's, and the shire's, few remaining links with our pre-war landscape could have been retained in a creative and architecturally striking way.
"It is extremely disappointing that Macquarie has chosen not to honour the history of the area it seeks to serve, or the expressed wishes of that community, by opting to demolish instead of include the 112-year-old house in its plans.
"It's a sad, but all too familiar, example of the race to redevelop riding roughshod over less tangible heritage values."
Macquarie Health Corporation has been contacted for comment.