The Australian Leisure and Hospitality Group Limited has submitted plans to council to demolish the existing hotel drive through liquor store and adjoining businesses to construct a new liquor store adjacent to Spencer Street.

ALH Group WA operations manager Colin Gourdis said the heritage value of the Highway Hotel had been taken into consideration under the plans and the group was in negotiations with council.

The plans have been subject to a long list of conditions set by council.

These include issues with the nearby intersection at Beach Road, Spencer, Forrest and Strickland Streets, commonly known as the Highway Corner.

Mr Gourdis said how the development affects traffic and the potential to redirect traffic were issues raised by council.

“We’re working through this,” he said.

However in last month’s council minutes it was stated that the “proponents have indicated they do not wish to pursue the possible road realignment options and wish to proceed with the current development proposal”.

Mr Gourdis said nothing was unsolvable and the company would work with council.

Bunbury mayor David Smith said road conditions at the site made the proposal difficult.

“The position where they are talking about putting the liquor outlet is incompatible with the (current) road structure,” he said.

Mr Smith said the proponents were anxious to move forward.

The company submitted an appeal to the State Appeals Tribunal after the council failed to respond to their plans within 90 days.

“We have to treat the application fairly and on its merits,” Mr Smith said.