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Byron Shire
October 20, 2026

Future of Mullum Hospital site up in the air 

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The NSW Government has offered Byron Shire Council the opportunity to buy back the Mullumbimby Hospital site. Photo Aslan Shand

Eight years ago, the state government agreed to sell the old Mullumbimby Hospital site to Byron Shire Council (BSC) for $1 in a stunt by National Party member Ben Franklin. 

Ben Franklin MLC. Photo David Lowe.

Council staff’s proposal to sell the site to developers will come before this Thursday’s Council meeting. 

Responding to the proposed sale of the site Byron Council’s Greens councillors said they want the NSW government to buy the land back, and take responsibility for implementing the community’s vision there. 

‘This is a large project that requires a big lift to deliver, but it is absolutely aligned with our community’s vision and housing objectives at all levels of government,’ Greens Mayor Sarah Ndiaye said in a press release last week. 

‘We cannot forgo one of our only opportunities for public and diverse housing that’s close to town, on flood-free land, in our Shire.’ 

Residents rally to save Mullumbimby Hospital land for the community on Sunday, April 23. Photo Jeff Dawson

However, the Mullumbimby Hospital Action group (MHAG) have pointed out in a letter to councillors that, ‘if it weren’t for many decades of dedicated work by the community the site would not be owned by BSC. Please note that MHAG was close to an agreement with NSW Health to remediate the site and return it to the community. Action by Ben Franklin led to the site being sold to Council for $1.’ 

MHAG said they had not been consulted by the BSC on the proposed sale.

‘The proposal has never been in the public domain and no public consultation has occurred. In fact the whole process has been entirely opaque,’ they said. 

Cr Sarah Ndiaye. Photo Tree Faerie.

How the hell did we get here? 

In the months following the purchase of the hospital site, the Mullumbimby Hospital Project Reference Group came up with a plan for a public and community precinct that was tailored to meet local needs. However, at the same time it became increasingly clear that large sections of the 4.4-hectare site were badly contaminated with asbestos and other waste that had not been properly disposed of. 

The demolition and remediation of the site has cost close to $6 million, money it borrowed and must repay, with interest. As the mountain of debt grew, the chances of a truly community-focused project at the site shrunk to the size of a Suffolk Park sub-let. 

Until last week when The Greens put out their press release calling for the state government to take over, it seemed that Council was all set to forge ahead with its plan to sell the site to a private developer, paving the way for it to become a commercial residential precinct. 

This week’s ordinary Council meeting was to see councillors vote on a series of key elements that would determine the nature and scope of the precinct, including the broad commercial arrangements for the sale of the land. 

The basic scope of the proposal was: Up to 225 residential dwellings; 50 per cent of dwellings to be singleroom, one- or two-bedroom; development of up to three storeys in height; 20 per cent affordable housing; a 0.63-hectare ‘community zone’. 

Staff were recommending an ‘englobo sale’ development model. Meaning that the entire site would be sold to a developer, based on its potential for future development and subdivision into separate parcels of land. This option was preferred over three other options. 

What will happen to the site now that The Greens have changed tack remains to be seen. Defer and consult 

However, MHAG have called for ‘the proposal to be deferred until the completion of community consultation’. 

The state government has stated in the past that the limiting factor for development of affordable and social housing in Byron Shire is the cost of the land. If the Labor state government are unwilling to take on this major social and affordable housing precinct in Mullumbimby, it is entirely likely that Council will continue with its plan to sell the site to a private developer and recoup the $6 million, plus interest, it has sunk into the project.



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