UP, NOT out is the way the council is viewing Bundaberg's future, with a nine-storey residential tower headed for the CBD.

Bundaberg Regional Council Planning and Development spokesman Ross Sommerfeld said the council thought - and the State Government was telling it - to "go up, don't go out" due to sewerage and infrastructure costs.

"If we can get more people in the area and it's cheaper to produce sewerage to those places, that benefits everybody - the whole region pays for infrastructure upgrades," Cr Sommerfeld said.

It comes as the council approved a two-year extension on a nine-storey residential and commercial development at its Planning Meeting this week.

The mixed residential and commercial development was originally approved for 36 Bourbong St, currently Choices Carpet and Flooring, in 2010.

With demolition of the current premises yet to start and expiration of the development approval looming this month, developers BKAG Properties Pty Ltd. applied for an extension.

At the Planning Meeting this week, planning officer and agenda item author Shane Booth's recommendation for the extension to be approved saw a unanimous council vote.

Cr Sommerfeld said high-density residential development for the CBD area was viewed favourably by the council. He said the council would "love" to see resorts in the town area as well.

"People say we lack five-star accommodation in Bundaberg," he said.

"We encourage it; people have been talking to us and saying they want to see some five-star accommodation. "Certainly our tourist attractions would appreciate that sort of level of investment of course and we believe that any time now is a good time."

He said Quay St west of the railway line - opposite Alexandra Park - was also targeted for high-density residential development but unlike Bourbong St with nine, had a five-storey limit.



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