Upper house member Stephen Lawrence has raised questions about Dubbo council's decision to take a possible rehab centre site off the table last year.
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But mayor Mathew Dickerson defended council, saying the land in question was never formally offered.
Speaking to the Daily Liberal, Mr Lawrence said a move by council to withdraw the "preferred site" for the drug and alcohol rehab centre in May 2022 was the direct cause for the Western NSW Local Health District's controversial Spears Drive site choice.
"It was not a decision made at a formal council meeting, it's never been the subject of any substantial discussion in public council and the community isn't widely aware of it," he said.
"Yet it's very important context, considering council's opposition to the project in Spears Drive."
The council-owned parcel of land in north Bunglegumbie was one of four possible locations for the rehab centre proposed by council in 2018.
Other suggested plots were the Greengrove Dubbo Sewage Treatment Plant, Pine Avon Wongarbon Sewage Treatment Plant or Railway Lane in Wongarbon.
"That offer of land - in fact - was the thing that kicked-off substantially the campaign for the rehab centre. [It] preceded and was important context to the subsequent offer of funding from the state and federal government," he said.
"The CEO of the WNSWLHD has told me that was the preferred site but after the local government elections it was withdrawn by council. That has led directly to the selection of Spears Drive as a site."
In February, WNSWLHD Chief Executive Mark Spittal and Member for Dubbo Dugald Saunders announced that the district would purchase a four-hectare site on Spears Drive, a residential street in West Dubbo.
The announcement raised eyebrows in the community, with some questioning its timing just a month out from the state election and others calling the site "inappropriate" for such a facility.
"It's frankly a little bit rich and quite unfortunate for council now to be opposing the centre in Spears Drive and making a very vague offer to assist in finding an alternative, when the quite secretive withdrawal of the previous land offer has led directly to this," he said.
Responding to the comments, Dubbo mayor Matthew Dickerson said there was a "never a formal resolution by council to offer that land" and it was simply a possibility discussed in council's social justice committee.
Dubbo Regional Council CEO Murray Wood said the decision to withdraw the land was made public in a report that went through the standing committee of council on May 12, 2022.
He explained the land was withdrawn by council staff in 2022 based on plans for future development of the land for residential purposes and new public open space.
"The demand for planning for the North West urban release areas has increased rapidly over the last 12 months and a rehabilitation facility in a residential area is not appropriate," the report said.
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