Sydney developer John Markovic addressed the council at a public voice session last month arguing the proposed $20 million building in Darby Street was a fitting landmark at a gateway to the central business district.

But council officers recommended refusing the project on the grounds that it exceeded the height limit by 38.5 per cent and was an overdevelopment of the site.

Deputy lord mayor Declan Clausen told a council development applications committee meeting last week that he supported refusing the project but the site should not be "quarantined" from development.

"There is an opportunity to have an iconic building like has been described on this site, but I would be expecting something that is much more compliant with the controls," he said.

"I hope there's another application forthcoming."

Lord mayor Nuatali Nelmes said it was "highly unusual" for the committee to be considering "such a significant DA of high value not worked through to the point where the parties had negotiated out an outcome".

Meanwhile, councillors approved, some of them "reluctantly", an application to retrospectively modify the development consent for a controversial apartment building which has already been built on land formerly owned by the council in Laman Street, Cooks Hill.

The decision gives consent to changes to windows, decks and other parts of the building which were not part of the approved plans for the building.

"I have to say I am exceptionally disappointed with what has occurred on that site ... the way that the development has been carried out, numerous breaches of the conditions of consent," Cr Clausen said.

"I think it's actually exceptionally disappointing that we're in the current position that we are in this development application before us and that the neighbours feel that this is the best outcome that they're likely to achieve.

"It does reflect very poorly on council, it reflects poorly on the developer, the fact that we are in this position ...

"It's a really poor outcome for the community."

Cr Nelmes questioned how the development had been privately certified "in a way that was outside height limits, outside the controls originally put in place by council".

"Does this happen on other sites throughout the city where there's less organised community groups who are not sure of every height measurement," she said.

The council approved a plan to redevelop Hamilton Fire Station which includes five new townhouses and converting the station house into an apartment.

The site in Broadmeadow is contaminated with PFAS, but the council was satisfied with a management plan for the pollutants.

Cr Nelmes said she hoped the developer could overcome the cost of remediating the site.

"I hope for actually the sake of the restoration of the fire station that it does go ahead," she said.

"I think it will be probably determined on how much the cost maybe is to remediate some of the soil around there if it is quite badly contaminated."

The council approved plans to refurbish the Maryland shopping centre and build a new Maryland Tavern on the site.

It also gave the green light to an IGA supermarket on the ground floor of a warehouse in Brunker Road, Broadmeadow, which now houses Hunter Drama and Ansteys Healthcare.

Hunter Drama, which leases part of the building's first floor, has lodged plans to build a theatrette in a separate section of the ground level.

The council has added the Knights' proposed centre of excellence to its agenda for Tuesday night after the Westpac Rescue Helicopter Service won a court injunction last week blocking the development applications committee from considering the matter.