Coincidently just four days later, the restoration of a historic, tumbledown Pambula home - Baddeley Cottage - drew wide appreciation and TV cameras to Pambula, when the story was aired on ABC's Restoration Australia.

But it would seem that the option to refuse heritage listing the building was a foregone conclusion, according to a representative for the proponents of a DA to demolish it.

The Royal Willows heritage nomination was submitted to council in November 2018 but at no time was any contact made with any of the three people who submitted it, not even to acknowledge receipt of their paperwork.

It prompted council's director community, environment and planning Alice Howe to apologise for the time taken in getting back to nominees, saying it was "an oversight" which didn't meet council's standards.

Dr Howe said the assessment had been made within four months of receipt of the nomination.

Shirley Bazley of the Merimbula Imlay Historical Society was one of the three nominees and spoke for heritage listing prior to the council meeting on September 22. She said according to the paperwork, staff had adopted a position on the listing by February 2020, if not earlier but without referring the matter to council.

"The value of listing the building, so it can be preserved as a significant feature of the shire's history, is having to be decided in the context of a DA that seeks to demolish that building for commercial purposes," Ms Bazley told council.

Another speaker for the listing, Chris Ralfs brought council's attention to the fact that architect and heritage consultant David Hobbs said in 2018 the proposed demolition of the building was not supported.

However after being engaged by the hotel owners in 2019, Mr Hobbs changed his view and told council there was very little original fabric of the building remaining and therefore he did not support heritage listing.

Also speaking for the owners Kel and Jeanette Stolzenhein, was the town planner they had engaged, Elizabeth Slapp.

Ms Slapp said the owners had a number of pre-lodgement meetings (prior to submitting the DA) with council and at no stage was the heritage nomination identified as a concern.

"In fact it was noted in the minutes of those meetings that council had no plans to heritage list the existing buildings and that they were generally supportive of the proposal for redevelopment," Ms Slapp told council.

The refusal to heritage list was carried by Crs Fitzpatrick, Bain, Nadin and Allen with Crs Griff, Seckold and Dodds voting against.