Lake Macquarie City Council will meet on Monday night to consider the proposal, which has sparked opposition from some community groups and an alternative plan from MP Greg Piper.

Council staff had recommended councillors prepare a planning proposal for some of the land and consult with landholders nearby.

"It is proposed that council will pursue a precinct planning proposal ... to demonstrate it is comprehensively considering the strategic context," a staff report states.

The report also notes about 337 community members had been involved in the consultation process so far, including Toronto Foreshore Protection Group.

The Newcastle Herald reported the group's spokeswoman, Suzanne Pritchard, argued that proposal equated to "shifting the goal posts and changing its own planning rules to get a favourable commercial outcome".

Cr Fraser said she would move that staff undertake no more work on sites in Bath Street and Victory Road until the council reviewed its property portfolio.

The mayor's motion will also call for the council to reclassify some of the land from operation to community land.

"I have listened to the community and I believe that it is time for us to take a step back and not proceed with the planning proposal," Cr Fraser said.

"I want to thank the community for their input advocacy and contribution.

"Community engagement is at the heart of our decision-making processes and it is something that I pride myself on. We aren't a city that lets our community down and this is why I am encouraging all councillors to support my proposal and take a step back."

Cr Jason Pauling posted several photos of a model of the proposal to social media on Monday.

Councillors will consider the staff report and mayor's motion at Monday night's meeting.

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