The Greens have called on the Land and Environment Court to give the public more time to respond to a new development application for the massive Kings Hill estate north of Raymond Terrace.
Kingshill Development launched legal action against Port Stephens Council in August after the Hunter Central Coast Regional Planning Panel rejected its concept plans for subdividing the first half of the 3500-lot subdivision in February.
Kingshill has since lodged an amended application which will be assessed by the Land and Environment Court. Public submissions to the council close on Friday.
The application comprises 101 documents, including more than 30 environmental and habitat reports prepared since the court case began.
Greens MP Cate Faehrmann asked the planning panel in a letter last month to apply to the court to extend the public exhibition period until January 20.
"Locals have been given just one month to consider the project and make submissions," she wrote.
"As the submissions to this new DA are likely to be considered by the Land and Environment Court it is essential that the local community is given the appropriate amount of time to consider the matter."
The subdivision, which has been planned for 20 years, would create a town almost the size of Raymond Terrace on the Pacific Highway opposite Grahamstown Dam.
The council recommended last year that the HCCRPP approve the concept plan for the first 1900 lots.
But the panel ruled the proposal was likely to "significantly affect a threatened species, population or ecological community or its habitat" after the Environment and Heritage Group in the Department of Planning and Environment refused to agree to the project.
Among 17 reasons for rejecting the concept plan, the HCCRPP said the site was "not suitable for the urban density proposed given the environmental impacts".
Environment and Heritage said the plan involved removing 152 hectares of koala habitat in an area where at least 50 koalas lived.
"The Kings Hill development should not be allowed to go ahead," Ms Faehrmann said.
"With such a frightening number of native species threatened with extinction, we cannot continue clearing threatened species habitat for development.
"The government needs to prohibit development on environmentally sensitive land and release a sustainable housing strategy for NSW."
Much of the Kings Hill area was rezoned for housing in 2010, three years after the state identified it as one of four priority residential areas in the Lower Hunter.
Kingshill bought 64 per cent of the site in 2012 and three years ago lodged the concept plan, which includes a 245-hectare "conservation area", school and parks.
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