The agreement covers JPG’s 2500-dwelling subdivision at North Cooranbong, where the sale of 48 blocks, comprising the first stage of the project, is progressing.

On Monday night, the council’s standing committee accepted staff recommendations to adopt the draft of the Morisset Contributions Catchment Plan without amendments.

Over the 45-day public exhibition period, 10 submissions were received plus a request from JPG to be covered by the new plan in preference to the agreement jointly signed by JPG and the council in 2008.

JPG senior development manager Brian Garland said that when the planning agreement was signed, the only option at the time was the council’s proposed $40,000 developer contribution per block.

‘‘That’s changed and the cost per block under the new plan would be around $7000 to $10,000 per block cheaper,’’ Mr Garland said.

‘‘The economic climate and the market have changed dramatically in the last four years.’’

A council report concurred the agreement was more expensive but argued ending the agreement would result in lost community space and infrastructure, including some cycleways.

Additionally $7 million of financial risk would be transferred to the council, the report said.

Mr Garland said JPG accepted the standing committee’s recommendation and would not seek to influence the full council next week when the plan is expected to be formally adopted.

Mr Garland has assured Cooranbong residents that the promised upgrade of the controversial intersection of Alton Road, Freemans Drive and Avondale College will not be delayed.

‘‘Council has put up a preferred junction design and we are committed to our contribution of $608,000 for it. Under our VPA [voluntary planning agreement] we don’t have to pay for it until we sell 400 blocks, but we know the community’s concern is real and so we have slashed that sales figure to 100 blocks so we are not far off,’’ he said.