The development at 270 Hillsborough Road was endorsed at Tuesday's Lake Macquarie council meeting after being recommended for approval.

The application, which expands on a current childcare centre and masonic centre on the site, was circulated to adjoining and surrounding landowners in 2016 and this year. The first round attracted 32 submissions and 37 submissions were received during the second period. All 69 submissions objected to the proposal.

Submissions detailed concerns about increased traffic, an overall reduction in car parking at the site, tree removal, possible fire and flooding issues, lighting, building height and privacy impacts. But council staff detailed responses which said the application met the necessary requirements for each issue, including approval from Transport for NSW and the Rural Fire Service.

Residents Dan Bishop and Alysia Price addressed the meeting, saying the application had caused stress and uncertainty for residents.

"Some residents have sold their homes pre-empting any adverse findings," Mr Bishop said.

Mr Bishop also pointed out the application was made under clause 7.12 of the Lake Macquarie Local Environmental Plan 2014, which was repealed several days later.

He said there had not been a recent flood study on the site, nor an emergency evacuation plan and there was only one exit.

The land owner Simon Quinn, of BC Land, and applicant Peter Zeilic, of Dimension 5 Design, also addressed the meeting. They said professionals had been employed to address possible issues including fire and flooding. Mr Zeilic said the proposal was two storey, the basement sunk in to keep building heights low and all setbacks from existing properties were at least three metres.

Councillor Brain Adamthwaite was the only councillor to vote against the proposal, saying he had concerns about access and social impacts.

But councillors Kevin Baker and Kay Fraser said while they acknowledged public concern, the development met all requirements and that seniors housing was needed in the area.

"If we are to knock a proposal back we have to have a good solid planning basis to knock that back," Cr Baker said.

Councillor Adam Schultz declared an interest in the matter and didn't vote, while councillors Barney Langford, Colin Grigg, Luke Cubis, Christine Buckley and John Gilbert were absent.

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