Nobbys Surf Lifesaving Club president Narelle Blick said the club was losing members due to access issues caused by Supercars.
Ms Blick spoke at a community meeting on April 3 about the Newcastle 500, where residents and businesses aired their negative experiences of the race.
The packed community meeting at Newcastle City Hall was organised by Newcastle East Residents Group and Makers x Traders of Newcastle.
Ms Blick spoke during an open floor question session about the difficulty accessing the beach and car park for the nine week set-up and pack down.
"That's 200 nippers that are displaced every Sunday," she said. "We're losing membership, that was proven on the first year of the Supercars to the second year. Our members will not come back.
"Our boats have to be out three weeks before Supercars.
"We're an emergency service, we're locked out with fences.
"It's just an argument the whole time to be able to access the emergency services that we need to be able to put down onto the beach."
Among the crowd at the meeting was Newcastle MP Tim Crakanthorp; Newcastle Liberal, Greens and Independent councillors; business owners, community groups and residents.
Labor councillors were not in attendance, with the event falling on a branch meeting night.
Newcastle lord mayor Nuatali Nelmes said she couldn't attend due to a meeting at Lambton Library with the new Minister for Women, but watched the recording online afterwards.
She said she expected "much of detailed data" presented would feature in workshops this week being conducted as part of KPMG's consultation.
"Our priority during this consultation period is to listen to as many residents and local businesses as possible about their experiences of Supercars, to ensure that their views are captured and understood," she said.
KPMG will hold four stakeholder workshops to capture views on the event from across the community.
"We're committed to undertaking a robust, open process of consultation through consultants KPMG, who are using a range of online, in-person and telephone surveys before, during and after the race period to gather feedback from a wide a range of people," Cr Nelmes said.
Businesses detailed their financial losses during the race, while Kath Fielden, who owns family law firm Fielden Associates, said she had moved her five staff out of Bolton Street to Adamstown because of the race.
Newcastle East Residents Group spokesperson Christine Everingham put a motion to the crowd, calling on the NSW government and City of Newcastle to:
- Cease hosting the Newcastle 500 through the residential streets and parklands of Newcastle East.
- Instigate a thorough and independent Performance Audit, conducted by the NSW Auditor General, to be undertaken on the Newcastle 500 event
- Begin the necessary discussions and negotiations to support a regional purpose-built motor racing circuit, open all year round for motor sports events.
It was supported unanimously.
Ms Everingham said the residents group had lodged almost 40 Freedom of Information requests "to find out what's going on".
"We know what's going on but we're still being accused of spreading misinformation," she said.
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