Wagga City Council has backed a proposal to promote denser housing by reducing land size in Tatton and Lake Albert.
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Existing between the country club on Plumpton Road and the residential zone on Brindabella Drive, the Tatton development will see the construction of up to 32 houses.
The minimum lot requirement will need to be reduced by 0.2 hectares.
City planners have identified the site as a key growth area, fitting within its ambitions to see the city swell beyond 80,000 people by 2040.
That 1.2 per cent growth rate over 20 years will require 14,000 new homes to be built on 1,750 hectares, with a density rate of eight dwellings per hectare.
Much of the development is anticipated to take place in the northern precinct, near Boorooma and Estella, but pockets of additional land will be used throughout the city.
"Wagga has to go higher density," said Tatton developer Matt Jenkins.
"Council recognised this as a strategic area, close to the golf course, close to the lake, and an area that could benefit from higher density."
Part of the lot already exists in residential zoning, but at the western end sits a water basin protected by environmental conservation zoning.
The basin will stay but will form something of an access way to the newly minted subdivisions.
Prior to council's re-allocation of this land, the western side was also considered to be within the flood damage zone. But with between 0.3 and 0.5 metres of flooding likely to impact, council is prepared to reconsider its evaluation.
"The basin will stay in use, and drainage will be a consideration during the planning," said manager of city strategy Tristan Kell.
With council's approval now achieved, the proposals are on to the state government, before the owner may begin seeking a development application.
"Tatton has been developed out, this is a bit of an anomaly in that it hasn't been built on yet," said Mr Kell.
Totalling 4.6 hectares in Lake Albert, the subdivision proposed for the vacant land between Vincent Road and Kooringal Road is slightly more complicated.
The proposal originally outlined an increase in the density from two houses to 24.
But, council's preliminary report discovered a tree canopy that would only allow 10 lots to reasonably exist on the land.