In its recommendation the Planning Assessment Commission, an independent body that advises the Department of Planning, noted “serious criticisms of the accuracy and adequacy of the information provided” by the developer.

It criticised the Tea Gardens site as being substantially “ecologically constrained” and said the impacts of the proposal should be regarded as “unacceptable”.

Major concerns were for the impacts to the nearby wetland and the potential contamination from stormwater pollutants and to the existing lake and its proposed extension.

In a statement to the Advocate, managing director of Crighton Properties, Geoff Cox said “his company had simply withdrawn its application, with a view to modifying the proposed plan.

“One of the company’s initiatives was to reduce the area of land subject to tidal impact and to increase the area of land that would be revegetated.”

The impact of clearing on endangered ecological communities, the loss of koala habitat and inadequate corridors for wildlife movements were highlighted in the report.

Secretary of the Myall Koala and Environment Group, Ian Morphett was one of six community members who stated his concern over the site’s lack of vegetation at a public hearing in April.

“We’re quite relieved to see the rethink, particularly as it relates to wildlife corridors.”

The 229ha site was to accommodate 1045 homes with 127ha dedicated to public recreation, wildlife corridors, conservation areas and stormwater management plus 8ha for tourist development.

With a projected 2000 people living on the site, the commission said the capacity of the existing sewage treatment plant in Hawks Nest required further consideration.

It suggested a water cycle management plan to address water supply, stormwater, sewage and effluent recycling.

In its final recommendation to the department the commission said Riverside should either be refused or the developer requested to review the proposal and present an amended version.

It said the ecological constraints of the proposal must be considered the highest priority.