The North South Wales government has gone ahead in approving the draft proposal for a subdivision spanning the Pacific Highway to Hearnes Lake and Sandy Beach.

The project bypassed local council approval based on the Part 3A of the Environmental Planning and Assessment Act that leaves the decision making process to the government.The proposed site of the subdivision is considered an environmentally-sensitive area by the Coffs Harbour City Council saying it would not be ideal for more than 35 housing lots.

The council further stated that the proposal went against a draft development control and environment plan for the location. Moreover, the Department of Planning only gave the Coffs Harbour City Council five days to provide information affecting the proposal. The council's acting director of land use, health and development, Jeff Green, told the The Coffs Coast Advocate that the development could lead to traffic and access issues in addition to threatening the habitat of the Wallum froglet leading to the destruction of an endangered ecological community.

"Council has concerns about asset protection areas; flood levels; environmental buffers and protection of the ICOL (Hearnes Lake is an intermittently closing and opening lake)," Green said. "Council has transmitted this information to the Department of Planning for their consideration and awaits their advice."