The unanimous decision was in direct opposition to MidCoast Council staff, who recommended an approval for alterations and additions to the existing caravan park.

Councillors attending the July monthly ordinary meeting were not convinced by an assurance from Ingenia senior development manager, Daniel Collings that the site would not be converted into a manufactured housing estate (MHE).

"We are disappointed with Midcoast Council's decision, despite a recommended approval by council staff," Mr Collings said.

"We will consider the decision in more detail before taking further steps.

"Our focus is working with our valued permanent residents, many of whom are long term residents of the Pacific Palms community, who continue to call the park their home."

Located on Boomerang Drive, the caravan park has a mix of short and long term sites, along with nine camping sites.

Ingenia planned to increase the long-term sites from 22 to 72 and remove the 155 short-term and nine camping sites.

Speaking to councillors, Pacific Palms businesswoman Caroline Cameron believed local businesses would suffer if the planned changes went ahead.

"Small businesses are the heartbeat of your neighbourhood, the spine of your local economy and the spirit of your town," she said.

"This quote summarises beautifully how our business community operates in the villages that make up Pacific Palms.

"We look after each other, we buy from each other, we offer each other support during power outages, we borrow produce from each other during summer, share staff and we recommend each other."

Resident, Scott Pearse asked how long would the site remain a caravan park?

"Ingenia Corporation intends to build a manufactured housing estate at the former Palms Oasis site," Mr Pearse said.

"Those plans are not in this DA but it is clear that if this DA is approved shortly a MHE application will follow."

He said residents did not want the valuable amenity of short-term caravan sites to be converted into permanent residences.

Former long-time visitor and Red Head South resident, Kendal Naylor gave an impassioned speech.

"I have been coming to Pacific Palms for 43 years as a tourist and it is a very special place to us," she said.

Catch up:

"They have the capability of turning this into the best mixed village on the coast."

A third generation visitor, Ms Naylor said her family visited the park for up to six weeks, supporting local businesses and events.

However, one of the 29 remaining permanent residents, and retired teacher, Keith Naylor was angry, claiming residents had been denigrated by the community about their choice of living.

"When is a caravan park not a caravan park?" Cr Kathryn Bell asked.

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