A show-cause notice has been issued to Wakefield Park after noise levels reached 124.1decibles (dB) over the February 18-20 weekend.
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Goulburn Mulwaree Council will seek an explanation as to why further regulatory action should not be pursued.
In a public statement, the council said the recorded noise was well more than the original consent granted in 1993.
"To provide perspective, 130 dB(A) is equivalent to a jumbo jet taking off," they said.
According to the original 1993 consent, noise levels are to never exceed 95 dB when measured 30 metres from the track.
A council spokesperson said that since November 21, Wakefield Park's monitoring equipment had recorded continual breaches.
"The council has been very keen for over five years to reach a compromise and a workable solution to ensure Wakefield Park can live in harmony with its neighbours and continue to operate a successful and profitable business," they said.
"Nobody, including the neighbours, has ever wanted Wakefield Park to stop operating as we all agree that this facility is good for the greater Goulburn Mulwaree economy.
"The appeal lodged by Wakefield Park against the development consent granted by Council to operate a major Recreation Facility (Major) at Goulburn will be held next month in the Land and Environment Court."
Wakefield Park operations manager Dean Chapman declined to comment.
Wakefield Park is challenging the council over consent conditions handed down last July. The Braidwood Road raceway had earlier lodged a DA aimed at modernising infrastructure, increasing the range of offerings but also implementing a noise regime. Previously, it had relied on a 1993 consent which residents claimed the facility was 'continually' breaching.
A hearing is set for the NSW Land and Environment Court on March 8, 9 and 10.
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