Councillors also heard at their meeting on Tuesday that the Challenge Foundation's $6.7 million facility planned for Marys Mount Road had to be modified due to NDIS changes.

The Foundation, which has been operating for about 70 years, had a DA approved for a 22-bed complex near Middle Arm Road in 2017. It will accommodate 18 to 35-year-olds across a modern complex and replace the Foundation's current homes.

READ MORE:

Challenge Foundation steams ahead with project plans

Goulburn's Challenge Foundation scores approval for new accommodation facility

Architect, Tim Lee, who took over from his predecessor, Garry Dutaillis, addressed councillors in open forum.

He said if a construction certificate had immediately flowed from the 2017 DA, section 64 fees of $18,000 for water and $69,000 for sewer infrastructure would have applied.

"Fast forward to today and those fees are very different," Mr Lee said.

"The Foundation is looking at $71,000 for water and $163,000 for sewer. So if it had proceeded with the initial approval, it wouldn't have had to pay out as much and it would have been money in the bank towards the project."

In a letter to councillors, Challenge Foundation president John Sykes said the NDIS only advised them after DA approval that legal requirements for accommodation had changed in November, 2016.

As such, the facility did not meet standards.

Mr Lee was appointed earlier this year to redesign the first stage accommodation from a single building to two areas, each comprising five rooms. Under the NDIS changes, no more than 10 beds could be in one building.

ALSO READ: National Family History Month at Goulburn Mulwaree Library

Each room will have a kitchenette, ensuite and access to a central outdoor area. Mr Lee said they would be arranged in a hexagon with a small room for a carer. A separate administration building will be constructed.

A modified construction certificate has been lodged.

Mr Lee said he did not expect the fees to be waived, simply reviewed given factors that were "outside of the Foundation's control."

But councillors decided to defer consideration, saying the request was different to what had been presented to them in a report.

Mayor Bob Kirk and Deputy Mayor Peter Walker said more detail was needed on what financial assistance the Foundation was seeking. It will also be asked for audited financial statements.

ALSO READ: Jacki Waugh believes in giving back to the community

General manager Warwick Bennett said the changed request was "frustrating" because the Foundation had "put pressure" on him to report the matter to Tuesday's meeting, enabling it to apply for grants.

He had recommended that a total $18,339 be discounted from the construction certificate and section 94 fees, in part because Challenge was a charity.

Mr Bennett recommended against reducing the section 64 fees, saying the Foundation could include this in any state or federal grant application.

He also pointed out that Challenge had been awarded $9,234 from the last year's Mayoral Charity Golf Day.

After the meeting, Mr Sykes said the NDIS had changed its requirements at "the 11^th hour," thereby deferring the project.

ALSO READ: Racing to lay claim on greyhound 'centre of excellence'

The Foundation had money in the bank to begin construction, had raised loans and would eventually sell its Goldsmith Street building.

"We'll apply for every grant available but most of them require development approval first," he said.

"There's not a lot of grant money on the table and a lot don't offset infrastructure fees."

Mr Sykes said the facility would take about one year to build and employ 40 to 50 people when all stages were complete.

Cr Margaret O'Neill, the Foundation's CEO, declared a pecuniary interest in the matter and left the room during Tuesday's debate.

Did you know the Goulburn Post is now offering breaking news alerts and a weekly email newsletter? Keep up-to-date with all the local news: sign up here.