Multi-million dollar plans to convert the historic cinema into a luxury hotel could be axed.
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Developers behind the project revealed this week they may pull out following a dispute with Orange City Council.
A parking bay to drop guests at the Lords Place entrance is sought, despite not featuring in approved plans for the Australia Cinema 4 overhaul.
"We just won't do it then," a representative for Sydney-based developer REF Group - who asked not to be identified by name - told the Central Western Daily.
"We're left in limbo land ... it's dramatically impacted the development.
"If counsel was proactive and trying to get a resolution ... they should actively work with the developers, not be trying to piss them off."
A spokesperson for Orange City Council said the addition - which would take away multiple parking spaces from the street - has never been permitted.
"The DA that was approved in October, 2021 did not involve onsite car parking and said it would encourage clients to use the nearby Ophir car park," they told the CWD.
"The developer's request for exclusive parking out the front of the building for its customers was denied by council.
"Council suggested repurposing the driveway that runs up the side of the building to provide parking."
Plans for the $4.35 million development feature 31 rooms, a cafe, restaurant, shops, and function centre.
The cinema has already been almost entirely gutted but its historic facade will be retained.
The building at 183 Lords Place was constructed as 'Australia Hall' in 1866 by James Dalton Junior to provide a venue for visitors from Ireland, according to historian Liz Edwards.
Conversion to a cinema took place sometime in the mid-20th century. The final film screened in 2010.
Orange Evangelical Church bought the land the following year and received DA approval to build a new complex in 2014 These plans were scrapped, with a new site on Cottonwood Way favoured. The groups new church opened in 2022.
REF Group Pty Ltd pitched the hotel development proposal for the Australia Cinema 4 in December 2019. Council approval was granted in October 2021.