LISMORE Council plans to proceed with creating a heritage conservation area around Little Keen St, subject to a grant being available to carry out the work.
But residents who had been fighting to save a house at 2 Little Keen St were disappointed that a separate motion was approved allowing the house to be removed from the site.
Cr Vanessa Ekins called it "demolition by neglect" and said it was a poor outcome for the street.
"We should have some respect for the timber and workmanship that has gone into these homes. We don't have the skills to create that kind of housing now... We don't want to be taken over by brick and tile."
Crs Greg Bennett and Mathew Sheibel argued that it was freehold land and the council should get out of the way and let the owner do what they wanted.
The area to be considered for heritage status includes the parts of Keen, Zadoc and Orion Streets that surround Little Keen St.
The council's strategic planning coordinator, Paula Newman, said a heritage zoning would mean "another layer of regulation" when a DA was submitted to consider heritage issues.
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