A planning proposal approved by Newcastle council to raise a building height limit in exchange for a laneway has set a "terrible and absurd precedent" for Wickham, according to a local resident.
Council approved the proposal at Tuesday's meeting for 41 and 47 Throsby Street, which will up the site's building height and floor space ratio controls.
The height limit was increased from 10 to 14 metres on the end closest to the village and 28 metres on the far side. The original proposal was 22 metres on the village side, but this was scaled down after 71 submissions were made against the plans.
In exchange for the increase, the developer will construct a new public laneway between Throsby Street and Furlong Lane.
But resident Kirsten Drysdale said laneway provided little community benefit and would advantage the developer.
"The delivery of these proposals are meant to have a net positive benefit to the community," she said. "A laneway providing basic services access should not be seen as additional."
Greens councillor John Mackenzie said the benefit was private, which "really throws into question our commitment to this process".
Independent councillor John Church said the community told him they would rather better footpaths, green spaces, public domains and pedestrian and cycle connections to Wickham Park.
The proposal was supported by Labor councillors and Liberal Callum Pull.
Deputy lord mayor Declan Clausen said he supported it due to the building height reduction to "something that is consistent and acceptable with the Wickham Masterplan", while lord mayor Nuatali Nelmes said the matter had been going on for more than three years "and at some point, a decision is going to have to be made".
But Ms Drysdale said this height limit should have been put forward to begin with, and the issue wouldn't have dragged out if council planners had ensured the proposal had been consistent with the original Wickham Masterplan and the community infrastructure benefited existing residents.
"How is bringing something in line with the limits it always should have been at a reduction at all? It's simply compliance," she said.
"This shouldn't be seen as a generous concession by a developer - it's simply what should have happened in the first place."
Lord mayor Nuatali Nelmes said the proposal was reflective of the Wickham Masterplan which was amended earlier this year, and council would look for community benefit more in line with residents' requests for future proposals.
But Ms Drysdale said this had "very badly damaged the confidence we have in their process".