Winten Property is seeking to add 70 residential lots to its Link Road South subdivision, which will take the total number of homes in the area to 664.
The developer has lodged modification plans with Lake Macquarie Council for the project at 140 Minmi Road.
The Link Road South lands form part of the concept approval issued by the state government in 2013 that straddles the Lake Macquarie and Newcastle LGA boundaries.
The Land and Environment Court approved the original Link Road South development in 2017. It included 594 residential lots, roads and infrastructure, and site clearing and earthworks.
The current modification application proposes internal site layout changes and reconfiguration of roads, with an additional 70 lots proposed within the existing site boundaries.
It follows the Joint Regional Planning Panel's approval of an 858-lot residential subdivision within the Newcastle LGA in March. It came despite significant community and council concerns about urban sprawl and environmental destruction.
The proposed Link Road South modification has attracted similar criticism.
Minmi resident Kathy White said the project's traffic report, produced in 2016, was no longer fit for purpose.
"The assumption is, the report will remain valid down the track when these homes are built, stating only another 70 lots have been added to the original 594 lots. They consider this will make little difference," she said.
"If they took the time to assess traffic correctly, they would be aware that the Link Road and Minmi Road amongst others in the area are already badly congested for a number of hours each day and another 617 homes will made a dramatic impact."
The project has also been criticised for its potential impacts on endangered species in particular koalas.
"The inadequacy of the biodiversity assessments and the failure to consider recent findings underscore the urgent need for a thorough re-evaluation of the development's impacts on the koala population and their habitat," Ms White said.
"In September this year a koala was found in the backyard of a Minmi resident and two were found killed on the road just beyond the Link Road, Woodford Street traffic lights which is an indication that they live in the area."
The modification application is on exhibition until 6 November.
"We are in the early stages of assessment and are in the process of resolving the consent authority," a council spokesman said.
"Council undertook assessment of the original application in accordance with the relevant planning legislation, and the conditions established under the Concept Approval, which includes consideration to infrastructure, habitat loss and social impact. The modification application will be assessed in the same manner."
Winten was approached for comment.
