A developer behind a multi-million dollar apartment complex in Belmont is seeking a significant discount on council fees, aiming to capitalise on freshly adopted planning rules designed to boost housing supply in Lake Macquarie.
Seeking a Slice of the New Policy
The $20 million residential project at 9-11 Gen Street, which received council approval in April 2023, is now back for a modification. Developer Antonio Di-Maio has requested that his required Section 7.11 developer contributions be either deferred or reduced under new council policies.
The originally approved plan involves demolishing two existing dwellings to construct a 25-unit apartment block. The complex is set to include nine one-bedroom, fourteen two-bedroom, and two three-bedroom apartments, plus a ground-floor commercial space and underground parking for 24 cars and two motorcycles.
A Unanimous Vote for Change
In a major policy shift, Lake Macquarie City Council voted unanimously in November 2025 to adopt updated Citywide Development Contributions Plans for both residential and commercial projects. The key change offers a powerful incentive: developers can now be eligible for a 100 per cent discount on development contributions if they commit to providing affordable housing in urban infill areas. This is a significant increase from the previous 85 per cent discount.
Furthermore, the policy now requires these contributions to be paid at the final construction stage, just before an occupation certificate is issued, rather than when building begins. These new rules officially took effect on December 1, 2025.
A council spokesperson confirmed that the exact value of any reduction for the Gen Street project has not yet been determined. "A development contributions officer will complete the assessment," the spokesperson said, noting the final amount will be specified on the amended consent.
Driving Housing Supply in a Growing Region
The policy overhaul is a direct response to the Lake Macquarie Housing Forum held in April 2025. With the region's population predicted to grow by 28,838 people by 2039, council is implementing a suite of measures to stimulate construction.
Lake Macquarie Mayor Adam Shultz has expressed hope that the changes will encourage private sector investment in the local area. Early council estimates suggest the new contributions plan could cost the council around $790,000 per year in foregone revenue.
The council has already received three development applications since December 1 seeking to have their contributions waived under the new plan. "As the plan has only been in effect since December 1, it's early days to gauge outcomes," the council spokesperson noted.
It remains unclear whether any of the units in the proposed Gen Street development will be designated as affordable housing, a key requirement to access the maximum discount. The council's infrastructure plans, funded by these contributions, are designed to support the anticipated influx of new residents and workers over the coming decades.
