Some areas of the Federal Golf Club could be rezoned and added to the Red Hill Nature Reserve as planning laws look set to be changed to allow for a retirement village on the site.
The ACT government's long-awaited integrated plan for Red Hill will be published on Thursday, cementing development opportunities for areas surrounding the reserve.
The plan, flagged in 2019, would allow the Federal Golf Club to build a 125-unit retirement village at the southern end of its site.
The land would have to be retained for an 18-hole golf course and any development on the course would need to protect key ecological values at the site, particularly the hollow bearing trees.
But the ACT government would also explore options to investigate whether areas of high ecological value at the club could be incorporated into the nature reserve.
The government would also move to stop any future hotels, motels or further clubs on the golf club site.
This would mean an unsolicited bid from a group, including the Southern Cross Club and Nikias Diamond to build a $25 million leisure complex would be dead in the water.
The group had pitched to build a function centre, hotel and health club on the site.
The Federal Golf Club has wanted to build a retirement village for at least five years. The club had originally wanted to build this on the northern end of the site but the territory government said the northern area contained "high ecological values".
Instead, the southern side was earmarked for the village.
ACT Planning Minister Mick Gentleman said the plan helped to provide a clear direction.
"The new plan will guide the future of the Federal Golf course and add more land to the well-loved Red Hill nature reserve," Mr Gentleman said.
"The plan provides a clear direction for the Federal Golf course site and will help retain the 18-hole golf course while protecting valued green space and adding new ecological opportunities.
"The southern portion of the course has been identified as suitable for law impact development such as residential retirement accommodation.
"Any new development will require traffic upgrades and ecological protections and be assessed by the independent planning and land authority."
The ACT government would also explore whether parts of the Section 66 site in Deakin could be incorporated into the Red Hill Nature Reserve.
Proposals for both the Deakin site and the Federal Golf Club prompted the ACT government to look into a Red Hill masterplan.
A mixed-use development with up to 200 units was proposed for the Section 66 site by Hindmarsh. However, residential would not be allowed on the site under the integrated plan.
Instead it would be rezoned to CZ2 to allow for businesses such as those in the nearby Deakin office park.
A variation to the territory plan would be needed so the Red Hill integrated plan can be implemented.
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