Found an interesting narrative (reproduced below) from the book 'Day by Day with Bhagavan,' in which Sri Ramana talks about various rumours and prophecies about Arunachala. The quote is particularly interesting in that it shows a relaxed, and almost encouraging attitude by Bhagavan regarding the future development of the area, so hopefully that may allay the concerns of some devotees about the rapid expansion of Tiruvannamalai.
“In those days these Rajas used to fortify their hills and live there. See Ginjee for instance. The Ginjee fort was built on three hills. They are all in ruins. Padaiveedu nearby in this District was once a great city. Hampi was a great city and the capital of an Empire. It is said that the town was built on the model of a Sri Chakra and that there has been some slight mistake somewhere, and that is why, though the Empire flourished well for a time, it did not endure but failed.
There is a rumour that a prophecy made by Vidyaranya, earlier a Dewan of Hampi Empire and later a Shankaracharya, has declared that when again a descendant of that Empire or a successor of his in the Mutt builds a city on the model of Sri Chakra, a great Empire will again flourish with that city as capital.
Some people have even thought that the present Shankaracharya (note: the now deceased Sri Chandrasekhara Saraswati) might be the person for such destiny. Our Naina used to feel that as this town is by nature itself built on Sri Chakra model, by the Gods themselves, if only we could build houses all round the Hill and make a city of it, this will become the capital of a big Empire. He used to be always thinking and speaking of swaraj (note: self-governance or home rule i.e. from the British) dreaming and planning for it and saying what he would do when swaraj is attained. People say there was a town in the old, old days somewhere here to the South of the Hill. Who knows that will happen hereafter? Did we imagine that all these houses now here were going to be built?”
[Day by Day with Bhagavan
Pages 116-117]