Developer promises council $22.6m if major housing estate goes ahead

Developer Winten (No 21) Pty Ltd put forward a Voluntary Planning Agreement (VPA) pledging to hand over more than $22.6 million to Lake Macquarie council for new parks and playgrounds, sports fields and a shared pathway if the project is approved - almost half of which will be left to the council to decide how to spend.

But, in a motion set for Tuesday's City of Newcastle meeting, Labor councillors Deahnna Richardson, Elizabeth Adamczyk and deputy mayor Declan Clausen want a joint briefing with Lake Macquarie, arguing the interests of existing and future residents needed to be a "foremost consideration" ahead of the "interests of any individual council".

They want to explore joint ownership of any future public amenities like community halls, recreation spaces and sports facilities to make sure they're located close to new homes.

At tonight's Lake Macquarie council meeting, councillors voted to endorse the VPA offer and put it on public exhibition.

Labor councillor Brian Adamthwaite made a change to the motion, calling for the $11.1 million the council can spent to be used specifically for amenities close to the development.

"I think it is important if we're looking at a development that it will obviously need to provide new resources, supports, facilities and services for the newer community but also it can create somewhat of a burden on the community that exists with more traffic, more people using the facilities," he said.

"It to me seems logical that the money that is raised as a result of the development should be in the development itself."

Initially, there wasn't room for two sports courts and fields in Lake Macquarie, and in 2021 the Department of Planning signed off on a proposal to put them in Newcastle.

In October this year, a revised proposal to move them back into Lake Macquarie was approved.

Plans for Stage 5 of the Link Road North Precinct subdivision would see land split into 1058 housing lots with three for future development, space for a school and two local parks east of the M1 and north of the Newcastle Link Road Hunter Expressway.

As part of the VPA, the developer will commit to building two parks with playgrounds and 800m of a shared path along the new Minmi Boulevarde from Newcastle Link Road to the Lake Macquarie and Newcastle border.

It will give the council $11.5m to build two new sports fields at Turnball Street Edgeworth with carparking and amenities as well as two new hardcourts and upgrades to the existing ones at Gregory Park, West Wallsend.

It's part of a bigger concept approval for housing at Cameron Park, Minmi and Stockrington which straddles Lake Macquarie, Newcastle and Cessnock councils on a 2000 hectare site once used for coal mining owned by Coal and Allied.

The Hunter and Central Coast Joint Regional Planning Panel will ultimately decide whether or not to approve the development application.

Cr Adamthwaite pointed out that while the council wouldn't sign off on the development, it was important to secure the best outcome for the community.

"I think by ensuring or trying to ensure that the funds that are raised stay within the affected community we have the best possible chance," he said.

"This is not a case of the end of the story, in fact it's probably only the early stages of the beginning of the story."

In 2013, the state government granted the five-stage concept approval which would allow for 3300 homes, two new commercial centres and a primary school.

Development applications for Stage 1 in City of Newcastle and Stage 2 in Lake Macquarie have already been approved.

The draft VPA will be put on public exhibition.