Bruce O'Brien's retirement plans are in disarray after a project to build a retirement village in his hometown of Dunedoo collapsed.
"We love Dunedoo, we don't want to move," Mr O'Brien said.
"A lot of the elderly people will have to move town."
Mr O'Brien had planned to move into the Three Rivers Regional Retirement Community, but the $7.9-million project to build the only retirement village in the New South Wales Central West town failed.
Asbestos and hundreds of defects were found throughout the site, leading to the contract being terminated in 2018.
It was funded by the local, state and federal governments and was initially planned to feature 27 units plus a community centre and garden.
Retired welder David Whitfield said many residents wanted to stay in Dunedoo and had been counting on the units for their retirement plans.
"If they've been here, like me, pretty much all their life they want to stay here," Mr Whitfield said.
"Their families are here and they're embedded or ingrained into the district."
Warrumbungle Shire Council and Boulus Constructions spent years locked in a legal battle, blaming each other for the project's failure.
Court documents obtained by the ABC show the council submitted a 325-page list of defects and claimed the builder had caused more than $8 million worth of damages for demolition and reconstruction.
The builder told the court the council had no asbestos certificates and had not met the minimum requirements of the development application.
Boulus Constructions told the court it would never have taken on the contract in the first place had it not been for the council's "false, misleading, and deceptive" statements.
Settlement reached: council
The council's general manager Roger Bailey told the ABC it had reached a legal settlement with the builder, but the conditions of the deal were confidential.
"It has been agreed we've terminated the contract with them for convenience under the terms of the contract," Mr Bailey said.
"That means the legal action in relation to this facility is done and completed."
Boulus Constructions did not respond to the ABC's requests for comment.
Mr Bailey told a town meeting about $3.6 million of the funding was remaining plus an additional top-up of $2 million from the state government .
With that $5.6 million he said the council hoped to build "up to six" aged care units elsewhere in Dunedoo, but would first have to pay an estimated $1 million to demolish the old site.
Mr Bailey said some of that money might also be diverted to "other projects" in Dunedoo.
Dunedoo farmer Emma Bowman said residents had watched in horror as the project failed.
"You could see from the start it wasn't going to plan," Ms Bowman said.
"That's why we're all so frustrated.
"We could see it happening but no one would take any notice."
Funding to go to alternative projects
A Department of Regional NSW spokesperson said the $5.6 million would be spent on other infrastructure renewable projects in Dunedoo.
"The NSW government is working with Warrumbungle Shire Council to determine alternative options for the reprioritised funding," the spokesperson said.
Federal MP Mark Coulton said it was a sad end to the Three Rivers Retirement project.
"I was disappointed to see this project fall through, as were the many hard-working people involved," Mr Coulton said.
"This fund was designed to meet the needs of the regions.
"I trust that although this project has sadly fallen through, the money will still be spent in a way which benefits the Dunedoo community."
Mr O'Brien said the future was uncertain for him, his wife, and his friends.
"Other people that I know were going to purchase over there as well," Mr O'Brien said.
"That won't eventuate now."
