City of Newcastle says it had no option but to support an 858-lot residential subdivision that forms part of Winten Property's massive housing estate on the city's western fringe.
Lake Macquarie council previously approved a 1070-lot section of the project, however, Newcastle had held out over concerns about the inadequacy of infrastructure and the development's inconsistency with its vision for the area.
City of Newcastle executive director planning and environment Michelle Bisson said the development application had been assessed by council staff in accordance with legislated requirements and was now considered to be consistent with the concept plan approved by the state government in 2013.
She acknowledged the significant community opposition to the development. The majority of public submissions said existing heritage, bushland and semi-rural outlooks would be detrimentally impacted by the proposal.
"The community expressed concerns with the development in regards to urban sprawl and transport impacts. The community has correctly cited the development's inconsistency with City of Newcastle's vision and ambition, and is only possible given the state government's 2013 approved concept plan," Ms Bisson said.
"City of Newcastle largely agrees with these concerns. However, the development is on land subject to a concept plan approval, issued by the NSW Government Planning Assessment Commission in 2013.
"As a result, City of Newcastle is unable to enforce contemporary planning principles as the parameters for the future development of this land."
The development application is due to be determined by the Hunter and Central Coast Regional Planning Panel next week.
Ms Bisson said it was hoped that, as the development progresses, the applicant would consider more contemporary planning principles to reduce urban sprawl and reduce footprints. This would require an amendment to the concept approval.
The council's assessment report documents its previous concerns regarding the approved concept plan and its various amendments over many years.
These traffic impacts and required road upgrades, recreation facilities, vegetation loss, impacts on the Summerhill Waste Management Facility and the proposed design guidelines.
The current development application was refused in December 2022 on the basis of 15 concerns.
Winten has since addressed concerns and secured support from a range of NSW Government departments and organisations including Transport for NSW.
The Hunter and Central Coast Regional Planning Panel previously approved a separate neighbouring application from Winten, located within the Lake Macquarie City Council Local Government Area, to develop a 1079-lot housing estate on land between the location of the current development application and the Newcastle Link Road.
Ms Bisson said the council would continue to advocate for the protection of a corridor required for a future southern access road into the Summerhill Waste Management Centre, which would remove the majority of large waste trucks from Wallsend and surrounding areas.
Newcastle Ward 4 councillor Elizabeth Adamczyk said the majority of the councillors agreed that the development was inconsistent with every contemporary planning control and resolution by the City of Newcastle.
"No existing and future community should be forced to live with the trauma of seeing even more of the area bulldozed for at least the next decade due to ill-equipped historic Part 3A planning decision," she said.
"It will be up to the state government's Planning Panel now to assess this proposal in its context - already congested arterial and local roads, massive environmental destruction, and severe public and active transport deficits - in order to determine whether the massive ongoing costs this will bring to our community's health, wellbeing, and hip pocket, not to mention those irretrievable costs to our environment, are more important than any outmoded Part 3A planning consent."