Ramsgate Estate: Lake Macquarie City Council approves new area plan to facilitate major residential subdivision

Nearby residents made 107 submissions to the Ramsgate Estate proposal, 87 of those raised concerns with minimum lot sizes, traffic increases and the capacity for local infrastructure to support new developments.

The controversial proposal left council with little option but to approve it, with no concrete reason to object on planning grounds alone, Lake Macquarie City Council deputy mayor Jason Pauling said.

"There's lots of bits that do make sense and there's lots of bits that do have really, really strong foundations in planning approval, appropriate consent and progress for the city tidying up a problem that has lingered for many, many years," he said.

"As a human being trying to represent the people - that's where I'm torn, I can't say there's an issue or a breach and it doesn't comply.

"Once again going to court isn't a valid consideration either ... but I'm pretty confident that our position there is pretty shaky.

"The planning process and due process has been followed, that said it's not particularly palatable."

The new area plan stemmed from problems with a historical paper subvision from 1885 that resulted in 608 lots with an average size of 400m and a network of 12 roads.

That paper subdivision pre-dates requirements for infrastructure works like roads, drainage, reticulated water and sewerage to support the subdivision of land.

It's hoped the new area plan will help patch-up long-term planning issues with the paper subdivision, ensuring the delivery of roads, essential services, bushfire protection and water quality management with any new housing estates.

The approval of the area plan isn't an approval for a housing estate, it effectively provides a blueprint for the "logical and efficient" development of the land.

Local residents have raised concerns that a major development would impact the relaxed, quiet lifestyle they enjoy at Wyee Point.

Councillors had the tough job of weighing those issues with the desperate need for new developments to manage the city's housing crisis.

Cr David Belcher said a subdivision would help alleviate issues with housing stock.

"When I see an outcome like this I'm very much tempted to grab it with both hands, because I do understand the complexity of these subdivisions if they do go sideways," he said.

"We're also experiencing it, as I think most people are aware, a severe housing shortage not just in Lake Macquarie but the NSW broader community as well."

The council sold 54 lots and unformed roads for $858,000 at Ramsgate Estate in 2020 to FTLR Pty Ltd, the major landowner within the estate and the proponent of a development scheme to rezone and re-subdivide part of the area.

FTLR already owned 375 lots and at the time the council said it was the most likely opportunity to see residential lots brought to market.

It, along with 17 other private landowners lodged a development application in March to turn one lot into 122.

Part of the area plan includes dedicating 43ha to the conservation of bushland both within Ramsay Estate and to the west of it.

Mayor Kay Fraser said she understood it was a difficult situation for councillors having to weigh up community concerns.

"But when we look at the planning proposal and what's in front of us, there's not a lot of opportunity for us to change that, the residents may think there is but at the end of the day we need to provide housing to all of Lake Macquarie," she said.

"This has been in the making for many, many decades and I think given what's happening in our city with housing, more affordable housing and people wanting to move to our city - we need more of that."

A report to councillors argued development of the land would contribute to the generation of jobs, increased housing stock and economic stimulus to the region.

An Economic Impact Assessment prepared in 2010 estimated development of 150 lots would provide a $47.8 million boost to the local economy along with 813 jobs.

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