Planning Minister Anthony Roberts this month approved Transport for NSW's request for three additional ancillary facilities to support construction of the Newcastle Inner City Bypass: Lookout Road at New Lambton Heights, Cardiff Road at Cardiff Heights/Marshall Street at New Lambton Heights and Peatties Road at Kotara.

But residents near Peatties Road had previously raised concerns about the impact construction and related traffic would have on their quiet area, prompting Newcastle councillor Peta Winney-Baartz to move a motion in September asking council to refuse the lease of its Peatties Road land for the project. The motion was supported unanimously.

Council owns part of the land, a former quarry, while Sydney Trains owns the rest.

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A council spokesperson this week re-affirmed the position that council "will not be entering into a lease or licence agreement with Transport for NSW".

"The onus is on the successful tenderer and TfNSW to source an alternative ancillary compound site," the spokesperson said.

A Transport spokesperson said they were "considering and investigating" other options for the compound and a decision was yet to be made regarding Peatties Road.

"Agreement from landowners will be required for any potential site," the spokesperson said. "We will provide an update to the community when a decision has been made."

Save Peatties Road Action Group spokesman Rob Maggiotto previously told The Herald Wimbledon Grove residents feared a "nightmare" 30 months - the bypass' expected construction time - should the Peatties Road site go ahead.

Thirty-eight residents, the action group and both Newcastle and Lake Macquarie councils all made submissions about the proposal.

Wallsend MP Sonia Hornery said the approval was a "kick in the guts for local residents who raised genuine concerns about the impacts this compound will have on their quiet little suburb.

"The original location for the compound was on land close to the proposed route for the Bypass which would have provided a more suitable outcome for local residents."

In its notice of decision, the Department of Planning and Environment said it met with the action group to discuss their concerns over the use of the Peatties Road site.

The notice said there will be a "small increase" in heavy vehicle movements, with most heavy vehicle movements expected during site establishment and demobilisation. Peatties Road will carry up to 120 extra vehicle movements and the traffic light timing at the Charlestown and Peatties road intersection can be adjusted to accommodate any traffic queueing.

A department spokesperson said the ancillary sites were "necessary" to support the delivery of the fifth and final section of the bypass.

"Street trees will be protected, and we've made sure people can still safely use Peatties Road, with the construction of a temporary footpath and traffic controls in place to manage construction vehicles entering and exiting the ancillary site during peak school times."

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