St Columban's church at Mayfield has earned a reprieve after Newcastle council knocked back an application to demolish it.
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The council's development applications committee rejected on heritage grounds a Catholic Diocese of Maitland-Newcastle proposal to knock down the 1940s red-brick building.
The Newcastle Herald reported in December that a heritage architect and engineer employed by the diocese had found the building was in danger of falling down in an earthquake and its foundations alone would cost $6 million to repair.
The National Trust's Hunter committee had opposed the demolition, arguing the diocese should look at ways to preserve at least parts of the building, which is listed as an item of local significance on the city's Local Environment Plan.
The church, which is unused, adjoins St Columban's Primary School and San Clemente high school. The diocese hopes to replace it with a multi-purpose hall.
The development applications committee endorsed a recommendation from council staff that the demolition be rejected because it would "have an extreme impact on the heritage significance of the heritage item".
"The proposed development is contrary to the public interest, with respect to the heritage significance of the building and its contextual relationship with other heritage items located in proximity to the site," the staff report said.
The report to councillors said the applicant's quantity surveyor had estimated the repair costs at $4,826,767 in total, plus a 25 per cent loading due to demand for tradespeople in the Hunter.
About half of the repair costs would go to fixing the foundations.
A diocese spokesman said the church was reviewing the council decision before deciding on its next step.
The council staff report also addressed the issue of the church's ownership.
EJE Architecture, writing to the council on behalf of the diocese on March 18, said St Columban's parish owned the building and could not afford to repair it.
"The applicant has stated that St Columban's Catholic Church is not owned by the Diocese of Maitland-Newcastle but is owned by the Catholic Parish of St Columban's Mayfield," the council report said.
"The additional information states that 'the Catholic Church as an entity does not in fact exist' and that the Trustees of the Roman Catholic Church 'do not own any assets'.
"Legal advice was sought regarding the ownership of St Columban's Church and that advice confirms that the property is owned by the Trustees of the Roman Catholic Church for the Diocese of Maitland-Newcastle."
The Herald's Opinion: Balancing the scales on heritage