A $5 MILLION housing development proposed for Croudace Bay is still a cause of concern among locals despite a reassessment of its size and character.
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The former House with No Steps site at 51 Parklea Avenue was sold to property developer HBU Projects last May.
The original application for a 28-lot development, lodged with Lake Macquarie City Council in July, attracted dozens of submissions from residents opposed to the project.
They listed concerns about traffic, impact on the environment and the density of the development.
The original plans were revised in October after the council wrote to the developer over some technicalities.
These concerned the streetscape, design and density, among other things.
In response, Monteath & Powys, the company managing the project on behalf of the developer, reduced the number of lots.
The configuration was changed from 28 small housing lots to 21 small housing lots and five standard residential lots - reducing the overall number of properties by two.
However, some residents are still unhappy. Corymbia Street resident Rob Lavell made a submission before and after the development application was changed, opposing it each time.
"Our position hasn't really changed," Mr Lavell said.
"[The developer has] made a few changes to cover the technical issues the council uncovered, but they've done nothing to appease residents' concerns.
"They've made a few little adjustments just to meet the minimum requirements of the council."
In his latest submission, Mr Lavell highlighted the introduction of the Lake Macquarie Local Environment Plan 2014 in between the two stages of the application.
The LEP 2014 came into effect on October 10, negating the previous LEP from 2004.
"We [Croudace Bay residents] understand that this DA was lodged under LEP 2004 and that, as such, it will be assessed using the guidelines set out in LEP 2004," he said.
"Nonetheless, we note that in LEP 2014 the site of the proposed development is now zoned Zone R2 - Low Density Residential.
"The equivalent minimum lot size for this zoning is 450 square metres."
The development's average lot size is 300 square metres compared to about 600 square metres in surrounding streets.
However, in a letter to the council, Monteath & Powys senior planner Rean Lourens said the development was not out of character.
"A visual impact assessment concluded that the proposal will fit well with the existing character of the area and will not impact significantly on the views or amenity of the adjoining residential development," Mr Lourens said.
The second round of submissions closed on December 29 and the DA is under assessment by council staff and then will be referred to councillors.