Councillors on Monday night voted to approve changes to a Voluntary Planning Agreement (VPA) between the council and Johnson Property Group relating to the 2500 lot residential subdivision Watagan Park at North Cooranbong.

Under the previous VPA, Johnson Property Group was required to install traffic lights on Alton Road, but this was removed as the NSW government came through with a grant for the works. This led to a new obligation for the developer to provide $3.5 million towards additional infrastructure.

The VPA changes also include an increase to the amount of lots able to sold before some community works need to be delivered.

But what has upset a group of residents is the route of a shared pathway was moved from Freemans Drive to through Avondale University College.

This means residents from 515 Freemans Drive to the intersection of Freemans Drive and Victory Street, as well as neighbourhoods around Babers Road, Deaves Road and Crawford Road would not be able to access the pathway.

The new VPA was exhibited prior to being approved, and council said there were 38 responses in favour of the pathway going through the college, and 23 against it.

Council said a path along Freemans Drive from Crawford Street to Victory Street had "physical difficulties in terms of driveway access and the gradient of the road verges, and will likely result in the removal of a number of mature trees".

Council said the college option was a "safer alternative, as well as an improved recreation and transport experience to that of an off-road shared pathway along a main road".

But Councillor Kevin Baker pointed out council is currently constructing a cycleway next to the Pacific Highway at Swansea.

"That's a pretty major road as far as I go," he said.

Cooranbong Business and Community Alliance member John Hammond said a cycleway along Freemans Drive was initially promised and the change had "abandoned" residents who won't be able to access it.

"It completely bypasses people on the western-southern side of Freemans Drive," he said.

Under the amended VPA, traffic lights will no longer be installed at the intersection of Avondale Road, Newport Road and Freemans Drive, further disappointing Dr Hammond.

"The intersection is right near a school, which is so dangerous with the traffic at pick up times," he said.

Dr Hammond said he was "not anti-development" but pointed out the VPA had already been changed several times in the past, which he said had not benefitted Cooranbong residents.

Avondale University College CEO Kelvin Peusar spoke at council and said the path through the college would "offer a safer, shorter and more amenable route between Avondale village and Morisset".

"We are happy to give back to the community in this way and enable the broader membership of the community to enjoy greater use of the campus," he said.

Watagan Park resident Scott Dobson also addressed the council, saying he had "well over 100 individual conversations" with residents from Watagan Park and the wider Cooranbong community about the amended VPA and only three of those people were opposed to it.

Councillor Barney Langford said the matter had "probably been one of the most fraught processes" he's been involved in on council.

"It seems to have gone on and on and on," he said. "However finally, I believe we have achieved an outcome that even though people may not be ecstatic about it, they'll be able to live with."

Councillors Jason Pauling and John Gilbert opposed the motion with Cr Pauling saying while housing and jobs were positives, the new VPA did not offer enough to receive his support.

"Am I ecstatic with what's being proposed? Certainly not," he said.

"In terms of the key differences between the two proposals, other than the bike path, I don't see anything of particular note, other than some delays on when the community should have been delivered some of the things that were slated earlier in the piece. That's one of my frustrations here.

"Is the proposed amendment worthy of support, I honestly don't know, it has not hit that threshold for me."

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