Lake Macquarie City Council will request a gateway determination from the Department of Planning and Environment to transform the former containment cell for hazardous materials at Boolaroo to a mixed use and public recreation space.

Councillor David Belcher said the move is a huge positive step forward for the city.

"I'd like to highlight that this is a clear demonstration of the city moving away from its heavy industry past into a new future, which is a diverse economy with many different types of industry and employment opportunities around that north-west catalyst area we have referred to," he said.

If the state government gives the rezoning the tick of approval, it could become home to anything from schools and daycares to parks and commercial developments sat comfortably alongside Costco and Bunnings.

The council deferred the decision for further information at the last meeting, as one councillor raised concerns about the 'complicated' and 'problematic' area.

The site has been remediated since its days of smelting lead, copper sulphate, zinc metals and producing sulphuric acid - and rezoning it has been on the cards before.

The Environment Protection Authority issued a remediation order in July 2003, which determined the site represented a 'significant risk of harm' - with the two main concerns being the migration of airborne dust containing lead and the migration of lead, zinc, cadmium and manganese from the site through surface water and groundwater.

Now that's been cleared up, the council wants to rezone the land with a view to fast-track employment opportunities for residents around Cardiff, Glendale, Warners Bay and Edgeworth.

Mayor Kay Fraser said it's important to facilitate an economic boost in that area.

"This is part of our north-west catalyst area and we need to make sure that this is like a city landmark for us, that promotes Lake Macquarie's leading role in the region and the state," she said.

"We need to generate that excitement and attract visitors, workers and customers from outside the city.

"This will encompass that and I look forward to the new housing and employment opportunities in that area."

The planning proposal will rezone land south of Cressy Road to mixed use and land north of the road to public recreation - with the potential for 'end of trip' and other public facilities.

It will also increase maximum building heights to 18m across the site.

The proposal is in the vicinity of the old Pasminco laboratory building, which is listed as a local heritage item.

By using the land off Munibung Road, the council hopes it will limit the need for more greenfield development in other parts of the city.

The proposal will now go to the state government for further approval.

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