The brothel was given the all clear by Lake Macquarie City Council, despite a determined campaign by local residents and business owners.

The development application attracted public criticism, with about 2000 people signing a petition against it.

A decision on the plan was originally scheduled for the June 1 council meeting but was postponed following a presentation by the No Brothel community group.

Councillors defered a decision on the issue until they inspected the site on June 11.

Councillors voted 9-3 in favour of the brothel at the following meeting (against, councillors Arnold Tamekand, Daniel Wallace and Paul Scarfe).

No Brothel spokesman Antony Gorman said the group had sought legal advice and was considering appealing the decision in the Land and Environment Court.

Mr Gorman said the group thought council had accepted a number of erroneous points in the development application.

He argued that mayor Greg Piper inappropriately described the bush reserve opposite the brothel site as “an informal play area” when sighting reasons for allowing the development.

Mr Gorman disputed the description and said the council’s Development Control Plan does not differentiate between formal and informal areas but only states the development should not be within view of “any place frequently attended by children”.

Mr Piper said while Mr Gorman and the No Brothel group could look at the semantics of a council debate, councillors had to deal with the application in a legal and professional manner.

“While it is not my place to encourage or discourage a third party appeal (by No Brothel), the fact that I am the mayor using a lay term in a council debate would provide very little legal grounding,” Mr Piper said.

The group also said the distance estimated to nearby homes was incorrect.