Plans for the $78 million development of Evans Head Retirement Village are now in turmoil following the sudden departure of RSL Lifecare.

John Walker of Richmond Valley Council said that the charitable organisation would no longer be building the retirement village, news that came ‘out of the blue’.

The 120-bed nursing home was to have included aged care units, residential housing and other facilities.

Fees and conditions imposed by the council that led to delays and concerns over financial transparency were determining factors said RSL Lifecare CEO Ron Thompson (pictured).

The controversial project has already been the focus of a campaign waged by Evans Head Memorial Aerodrome Committee who were against the development due its proximity to an airfield.

It is now for council to determine the next step for the retirement village.

"The priority for a retirement village facility will remain and we will look for alternate ways to bring it to fruition," said Mr Walker.