The Warners Bay Town Centre Area Plan proposes The Esplanade's three and four-storey buildings be raised to five and six storeys.

The council's manager integrated planning Sharon Pope said some residents expressed concerns during consultation, which were taken into consideration.

"The community did want one and two storeys, but there wouldn't be much room for development there," Ms Pope said.

She said the council would go ahead with its plan to lift development height restrictions, but had no intention to develop high-rise buildings.

Lake Macquarie mayor Jodie Harrison said she was pleased to see the town centre plan come to fruition.

"I certainly support this plan," Cr Harrison said.

"This has been something council's been grappling with over a number of terms."

Cr Harrison said it was an example of the council's "forward planning" for population increase.

"It's better to plan for that in town centres than have urban sprawl," she said.

Cr Harrison said the plan addressed one of the community's main concerns - car parking.

Under the plan, the town's main car park in John Street will be transformed into a six-storey complex, with four storeys of parking, including one underground level; two residential storeys and an office floor.

Councillors voted to place the Warners Bay Town Centre Area Plan on public exhibition for 42 days.

Go to lakemac.com.au.