A proposal to build two 14-storey residential and commercial towers in place of the derelict pub, which shut in 2010 leaving music lovers up in arms, was yesterday given the go-ahead by the Southern Joint Regional Planning Panel.

Panel members voiced enthusiasm for the 135-apartment complex, but asked that developers include a strong link to the site’s historical significance in the final design.

Tower block set to rise on Oxford site

After the meeting, PSR Investments developer Robert Haung told the Mercury demolition and remediation of the site including a former petrol station, as well as an archaeological dig to uncover the site’s convict history, would start ‘‘in or before May’’.

The building, to be known as Oxford on Crown, would then be completed 20 months from the start date, Mr Haung said, making it ready to open in early 2016.

Planner and spokesman  for the developers, Brett Daintry, said the approval marked a new beginning for the CBD site.

‘‘This is the most significant development in this corner of the CBD in Wollongong for a long time,’’ he said.

‘‘It will set the standard and desired character of future high-density residential developments that will activate the city and bring it back to life.’’

Despite a positive outlook from the panel and developers, Platinum Apartments resident Roslyn Williams spoke on behalf of occupants of her building.

She said residents of the neighbouring block were concerned the new building would increase traffic, create extra garbage, cause a loss of sunlight and views,  and affect property values due to construction noise.

‘‘The traffic is already problematic in [Town Hall Place] laneway, so to add another 260-odd cars will make a compounded traffic problem,’’ Ms Williams said.

‘‘The Platinum building, when it was built, had constraints on the building heights and setbacks which were designed to preserve the character of this historic part of Wollongong and we feel that any development on the Oxford site should also take that into account.’’

Panel member Alison McCabe said she understood these concerns and was ‘‘not entirely without reservations’’ about the towers, which would dwarf surrounding buildings.

‘‘However, I accept that this is a new chapter in the planning of this site,’’ she said.

Panel member Allen Greenwood also supported the Oxford development, but asked that the final design place more emphasis on the area’s history by ‘‘interpreting’’ its heritage and displaying it in a publicly accessible place.

JRPP chair Pam Allen also urged developers to work with neighbouring residents and preserve the eastern CBD’s ‘‘ambience’’.

‘‘[The] development might be a cracker of a development ... but the council does have a responsibility to make sure that whole area does continue to have an ambience,’’ she said.

‘‘That why we are putting emphasis on the story of the building - it has been a place where people have had alcoholic beverages since 1839 and ... this shows it’s an integral part of this city.’’

Developers of a proposed 18-storey affordable housing project on Auburn Street have been given a second chance by the regional planning authority.

Last week, Wollongong City Council staff recommended the $32-million development be rejected as ‘‘contrary to the public interest’’ because it didn’t comply with the affordable housing policy’s floor space ratios.

However, the Joint Regional Planning Panel voted unanimously yesterday to defer making a decision on the proposal due to clashing legal interpretations of a state planning policy by the council and developers.

The proposed development would include four levels of affordable housing and a further 10 of flats, above three commercial and retail floors.

It would be built on a 2171-square-metre site next to Wollongong Railway Station, which has been awaiting development for more than a decade.

Panel member Alison McCabe said she saw merit in the plans, as low-cost housing was needed in Wollongong’s CBD. She moved that the panel allow both parties more time to come to an agreement.