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The council will request a determination from the Department of Planning and Environment to increase building heights and change planning controls for the proposed tourism destination complete with 218 hotel rooms, 180 apartments, a 300-seat function centre and two 300-seat restaurants.
The project is the brainchild of Johnson Property Group developer Keith Johnson, brought to life by Koichi Takada Architects, designed to mirror the sloping ranges of the Watagan Mountains behind it.
A development of this scale is unlike anything else in Lake Macquarie, requiring a number of changes to the council's Local Environmental Plan (LEP) to support the state significant development.
Cr David Belcher welcomed the proposal, and said 400 construction jobs and 200 roles to run the facility would have a positive impact on Morisset and surrounds.
"That's real jobs for the young people in my community, so I'm really looking forward to that being the case," he said.
"What has been achieved out there already with the construction of 8 at Trinity really shows that this is an area that has a great deal of potential, people from outside our city are recognising that and already coming up to the Lake Macquarie area to utilise that facility.
"It is a significant project in the south-west catalyst area and it will go very nicely with the Cedar Mill development in terms of providing tourist accommodation for our city, and I encourage all councillors to support this as it stands now."
Along with changes to building height controls, the council voted to permit the use of a helipad on the marina, rezone council-owned land at Trinity Point Drive from tourist to public recreation and allow greater flexibility for a significant mixed-use tourism and residential development.
There will no longer be a requirement for an Aboriginal education centre, instead the proponent will need to implement a historical and Aboriginal heritage interpretation strategy in consultation with the local Aboriginal Land Council.
The development will also need to maintain a physical pedestrian connection from Trinity Point Drive through to the foreshore.
A cap of 150 dwellings with no more than half of them to be used for residential purposes is proposed to be removed.
The council could have allowed the concept to be approved by the Minister for Planning without amending its own planning controls, but that would have resulted in the council having no formal role in the development process.
Not everyone voted in favour of changes to the LEP, Cr Brian Adamthwaite said he was sceptical of the development.
"I'm not against the proposal per say, the artist rendering looks wonderful and the idea of having the units and tourism is certainly going to assist the western side of the lake," he said.
"My concerns relate to the fact that, it's twofold really, once we approve a change in height we can't guarantee necessarily that it's going to be as nice as the artistic renderings.
"And the second reason is that from my understanding the proposal has had approval for tourist hotels and residential opportunities for about 13 years and to this point the number of hotel rooms built is zero and the number of residential apartments is also at zero."
If the changes are approved by the state government, they will go on public exhibition for at least 28 days.
Even if the LEP changes are approved, the development itself will need to go through its own approval process.
The project is expected to be a huge draw-card for the city, generating 398 jobs and a $26.8 million contribution to gross domestic product each year, according to an economic impact assessment.
Construction of the development is pegged to generate $1.6 billion of direct economic activity and directly create 1,287 jobs for the Morisset area and wider region.
A social impact assessment revealed the development is likely to increase the permanent population and visitors to the site, "activating the area and providing greater housing choice and tourism opportunities".
It's the second green light for the project in under a fortnight, with the Hunter and Central Coast Regional Planning Panel approving a $7.2 million 188-berth marina expansion last week.
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