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Planning Minister Paul Scully will not overturn the approval of Winten Property's controversial Minmi Estate, despite residents and councillors warning the project will have a devastating social and environmental impact on Newcastle's western fringe.
The Hunter Central Coast Regional Planning Panel approved the 858-lot residential subdivision on Monday, soon after residents spoke about the project's potential impacts on the environment, human health, heritage, safety.
"I felt sick in my stomach when it was approved. It just didn't seem like they took enough time to consider our concerns about pollution and contamination," Minmi resident Kathy White said.
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"When it was originally refused it took a few days for them to make a decision but time it was almost like it was rubber stamped. We just need to keep fighting."
The Newcastle section of the estate will join the previously approved 1070-lot section that falls within the Lake Macquarie local government area.
Newcastle Lord Mayor Nuatali Nelmes will move a mayoral minute at Tuesday's council meeting that reiterates the council's opposition to the 2013 concept plan and calls on the government to call-in the project.
"Unfortunately our council planning staff have their hands tied and were required to assess the application based on an outdated and inadequate concept plan which was approved more than a decade ago by the NSW government Planning Assessment Commission, on behalf of then Liberal Planning Minister Brad Hazzard," Cr Nelmes said.
A spokeswoman for Minister Scully told the Newcastle Herald on Tuesday that he would not overturn the panel's decision.
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Wallsend MP Sonia Hornery said there was a need to balance the need for more housing with environmental concerns and loss of habitat.
"The developer has conditions on the DA and will minimise impact to the surrounding area but I note this was classified to be an urban area in 2013 by the former Liberal Government," she said.
"I've long been on the record as advocating for a more balanced approach to housing in the suburbs.
"It's disappointing that the Lord Mayor chooses to lay this blame at the NSW government's door when she is fully aware it was passed by an independent planning panel and there is no more power for the state government to cancel this project than the power council had to cancel it last week."
Hunter Central Coast Regional Planning Panel chairman Paul Mitchell said the panel had unanimously approved the application on the basis that it was in the public interest.
He gave seven reasons for approval including that the proposal was generally consistent with the approved concept plan for the area; it was an appropriate use of the land, the site of the development was suitable, it would not have unacceptable environmental impacts, it would open up additional residential land, the plan would provide road access to existing allotments and the development was consistent with environmentally sustainable design principles.