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Lake Macquarie Council has defended its assessment of the controversial Minmi Estate development despite acknowledging the project will likely wipe out 150 hectares of core koala habitat.
Like City of Newcastle planning staff, Lake Macquarie council staff expressed major concerns about the project's environmental and social impacts.
However their hands were tied given the project was deemed to be consistent with the concept plan approved by the state government in 2013.
The Hunter Central Coast Joint Regional Planning Panel ultimately approved both the 1070-lot Lake Macquarie component and the 858-lot Newcastle component earlier this year.
The state government has refused to review the approval despite community and local government protests.
An October 2023 Lake Macquarie Council flora and fauna report found the development would have substantial impacts on biodiversity within the locality.
This includes 150 hectares of core koala habitat, 47.26 hectares of the endangered Lower Hunter Spotted Gum lronbark Forest and 1,932 individuals of the state and federally listed critically endangered flora species scrub turpentine.
"Along with the direct impacts from clearing, indirect impacts to surrounding areas are a significant factor in the consideration of impacts to biodiversity. The development will remove connectivity and isolate approximately 500 hectares of habitat to the east and southeast of the development site and approximately 200 hectares to the north including the Blue Gum Hills Regional Park," the report said.
These impacts would result in habitat fragmentation and the loss or significant reduction of wildlife corridors. Although the linear reserves associated with riparian areas will remain, the ability for these to act as functional corridors is considered highly unlikely.
Further potential impacts included weed incursion, rubbish dumping, pollution, alterations to stream flow noise, lighting and wildlife roadkill.
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In relation to koalas, the report cited records that show the land and surrounds contains evidence of occupation of Koalas over four generations.
It continues to be core koala habitat based on the presence of suitable habitat.
"The impact of removing 150 hectares and isolating a further approximately 700 hectares of potential habitat for the Koala and the impacts of disrupting local/regional habitat connectivity will have significant impacts upon the species that will extend well beyond the site," the report said.
Lake Macquarie Council said the issues raised in the report were forwarded to the planning panel.
A council spokeswoman said the legislative framework for the site was complex as the land was subject to a 2013 concept approval. This included biocertification of the land under the legislation at the time.
"The ecology advice provided was consistent with current biodiversity legislation, however had not fully considered all legal requirements. After a thorough review of both internal and external ecological advice, it has been determined that the biodiversity impacts are acceptable under the current legislation," she said.