The $360 million Shaolin tourism complex south of Nowra may not proceed after the Planning Assessment Commission placed strict conditions on its approval for the development.
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The commission approved the concept plan but excluded the golf course and residential precincts of the proposal and advised that the hotel precinct should be moved.
Shaolin Foundation spokesman Phil Balding was unavailable for comment, but has previously said the foundation would pull out of the development in the face of further obstacles.
A long-standing advocate for the development, councillor Greg Watson said the decision was ‘‘a Clayton’s approval...aimed at the project not proceeding’’.
‘‘It’s put paid to the concept of NSW being open for business and I believe will provide a major embarrassment for the Premier who is in China at the moment touting for Chinese tourism,’’ Cr Watson said.
A disappointed Shoalhaven Mayor Joanna Gash said the announcement ‘‘comes as a huge blow to Shoalhaven City and the entire state’’.