Bathurst Regional Council unanimously approved plans for a modern residential development that will boast 40 apartments, two retail premises, a cafe and commercial premises.

It will involve the demolition of two buildings on the rundown site at the corner of Howick and Bentinck streets but, significantly, the retention – and stabilisation – of the landmark Dairy Farmers tower and old office building.

Cr Jennings acknowledged that such a development within the Bathurst heritage zone would “raise a few eyebrows” but said it was a development that deserved support.

“Overall, I think we have to see the positives in this development,” he said.

“The 40 apartments in this development is a saving of 40 homes being built so from an urban sprawl point of view, I very much welcome it.”

Cr Jennings said the development, in future years, might be seen as the forerunner to a new style of living near the centre of Bathurst.

“I think it was Winston Churchill who said ‘We shape the buildings and they go on to shape us’,” he said.

“I’m looking forward to seeing this go ahead and seeing the positives in this application.”

Deputy mayor Ian North said the site was historically significant for the region, having also been home to a convict hospital in the early years of Bathurst’s settlement.

“I was just reminded yesterday that [Aboriginal warrior] Windradyne was in that convict hospital so I would be hoping that somewhere down the track there would be something on the corner to recognise the importance of that site,” he said.

Environmental planning and building services director David Shaw said it was a condition of consent that the developer prepare and install interpretive panels – to be approved by council – outlining the site’s built and social history.

Cr Bobby Bourke said the redevelopment of the Dairy Farmers site would remove one more eyesore from the Bathurst CBD.

“It’s great to see a developer working with council to develop this ugly eyesore,” he said.

“Since I’ve been on council there have been a lot of ugly eyesores developed – the corner of Rocket and Stewart streets, the Pro wash site and the corner of George and Durham, to name a few – and it’s good to see another site within the CBD being cleaned up.”

But he could not resist raising one of the remaining Bathurst eyesores – the old gasworks site on lower Russell Street – and asked if a similar development could be built there.

Cr Gary Rush said the Dairy Farmers redevelopment was a $15 million vote of confidence in the future of Bathurst.