Anna Bay fears worsening floods and wildlife loss

A flood prone Anna Bay community fears the worst if the proposed AB Rises housing development proceeds

By Carmel Northwood, Koala Koalition EcoNetwork Port Stephens
& South Tomaree Community Association
Sue Olsson, EcoNetwork Port Stephens

Anna Bay proposed developments threaten increased flooding of neighbouring homes and closure of Gan Gan Road for weeks.

Implications for the Tomaree Peninsula too

Nelson Bay Road and Port Stephens Drive can already be underwater for weeks.

Proposed developments if approved could isolate the whole Tomaree Peninsula without food, fuel or medical services.

Anna Bay residents have heard for years about adjoining rural properties being bought up by developers along Gan Gan Road and Old Main Road. Attempts have been made to develop this same flood prone land before, and have been refused for multiple reasons.

AB Rise have submitted two overlapping proposals to Port Stephens Council:

Stage 1. A Development Application for 47 houses along Gan Gan Rd

Stage 2. A rezoning proposal for 585 houses on 125 hectares that overlaps the AB Rise Stage 1 site

Figure 1 shows the location of the combined proposals

taking in a total area similar to the the existing Anna Bay village, the development extends from the eastern end of Anna Bay near One Mile, along Gan Gan Road, north nearly to Nelson Bay Road, and west to Frost Road.

Newcastle Herald 20 Jan 2025

Anna Bay residents fear widespread flooding caused by last week’s torrential rain will become a commonplace catastrophe if a controversial housing development goes ahead

The pole to the left shows how much fill the developer wants to use, from 1-4m. Imagine the impact on the now lower-lying neighbours from raised, consolidated and hardened surfaces of a residential development. Already these neighbours are isolated during floods.

Community concerns in a nutshell

Stage 1 Concerns
Flooding of nearby residents and Gan Gan Rd
Community safety and traffic in Anna Bay during construction
Inadequate infrastructure in Anna Bay to support influx
Biodiversity loss
Further loss of Aboriginal culture
Fill: material, height, transport, flooding

Stage 2 Concerns
Flooding of upstream residents during major rain event impacting insurance for all in 2316 postcode
Further deterioration of water quality impacting on marine environment and oyster industry
Community health and safety as Main Drain has Acid Sulphate Soils, heavy metals
Last remaining stand of core koala habitat
Loss of biodiversity (habitat, connectivity)
Fire in peat swamp
Increased burden on infrastructure and services
(eg schools, shops and medical services)
Traffic during construction

Outraged community rallies – frustrated and fearing floods

Stage 1. Development Application for 47# homes along Gan Gan Rd

# As this page was being finalised for distribution, the Court decision to the developer’s appeal was made public

Developer, AB Rise Pty Ltd, submitted their DA 16-2023-583-1 to build 47 homes on Gan Gan Rd (Figure 2), in an area that regularly floods between Anna Bay and Boat Harbour opposite the vicinity of Clarke St, called by many ‘the basin’.

The section of road between 263-293 Gan Gan Rd was closed for almost two weeks, with water over the road for longer.

Figure 2 shows the AB Rise Stage 1 development of 47 homes

Community and Council concerns

March 2021 saw Gan Gan Road closed for nearly 2 weeks and homes impacted ~ major flooding exacerbated by potential development further threatens neighbours.

As recently as March 2021, this area of Anna Bay suffered floods after a major rain event on the 21 March.

Flooding impacts were still severe 3 days afterwards when these photos were taken, as floodwater had subsided sufficiently to enable access.

Residents incurred costs to remediate the stormwater and flood damage to their homes, garages, access roads, gardens and vegetation.

Some residents were unable to leave their homes except in 4wd vehicles due to the water having gouged out 30-40cm deep ruts.

Neighbouring homes across the road from the proposed development cannot be subjected to any further runoff, that will naturally occur with the 1-4m of fill and impermeable surfaces proposed in the development area.

The Koala Koalition EcoNetwork Port Stephens (KKEPS) 2023 submission claims the proponents do not seem to be sufficiently cognisant of the extent of flooding deluges that already descend on the area, and have resulted in appropriate flood zones being applied.

Additional concerns include proposed small water retention/detention basins in blocks 44 and 47 of the development will not adequately prevent flood inundation to neighbouring properties.

The likelihood of a flooding event occurring during construction, and the stormwater carrying fill across Gan Gan Rd into the southern neighbouring properties further elevating previous flood levels, has not been mentioned, and no mitigation plans for such an event have been proposed for review.

Locally known as the ‘Basin’, here peat bogs and acid sulphate soils if disturbed can cause fish kills.

This Basin has unusual geological circumstances, where flooding from the south (flowing out of natural springs for weeks) cannot drain through underlying volcanic rock.

To the north of the Basin, and behind a few existing houses, is a treed ridgeline (an ancient sand dune), and beyond that is flat ground. Flood water very slowly drains and filters through the northern ridge to the flat land, the coastal back-swamp historically known as the Murrumburrimbah swamp.

The Main Drain, built around 1987 and extensively extended, takes water from Murrumburrimbah Swamp behind One Mile Beach, discharging it into Tilligerry Creek (near the Fisheries Institute).

Most of this land is peat bog and acid sulphate soils, that if disturbed can cause fish and oyster kills where it flushes out. Fisheries reports: “Greater movement of acidic groundwater has resulted in fish kills, poor water quality affecting oyster cultivation, reduced stock production and a deterioration in downstream environmental values.” DPI 2008

High biodiversity and cultural values compromised with development.

Apart from very serious flooding and drainage issues, this area has additional development constraints due to high biodiversity values and Aboriginal cultural heritage issues. The ridgeline is a significant natural landscape that adds to the area’s visual appeal for tourists and locals alike.

Figure 3: Core koala habitat (pink) and habitat link (orange)

Project area

The Biodiversity Constraints Assessment report noted in: “The Project Area hosts a variety of habitat features that support a diverse range of native flora and fauna. Targeted surveys detected 266 native and 76 exotic flora species, and 117 fauna species within the Project Area…. Threatened Fauna Species Targeted and opportunistic surveys identified 117 fauna species within the Project Area…. Eleven threatened fauna species were detected within the project area”. (From KKEPS 2023)

Additionally, the plethora of old growth habitat and hollow-bearing trees noted in Figure 4 cannot be replaced by planting saplings or devising conservation zones on the north side of the dune.

These trees along the ridgeline form the clearly mapped Fauna Corridor that extends from the northern to the southern sides of Gan Gan Rd, linking the koala population in the Anna Bay/One Mile to the Tomaree National Park and beyond. There is no alternative area across Gan Gan Rd because of continued developments, so retaining these trees is essential to local biodiversity.

The Arborists report advises against the clearing of old growth trees with hollows, marking them clearly on his reports to be avoided, but the proposed development ignores this advice.

Koala Koalition EcoNetwork Port Stephens objected to the Stage 1 Development on several grounds

KKEPS 2023 detailed objection to the proposed Stage 1 Development in November 2023 along Gan Gan Rd was on many grounds, including

increased flooding to neighbours
highly significant biodiversity habitat/corridors concerns
Aboriginal cultural values
increased fire risk to neighbours
the landscape value of the old sand dune rise, as well as
the social impacts of such an intensive development – proposed zoning of low density residential, R2 – in what is zoned a rural setting amidst other rural-residential development on neighbouring RU2 and R5 lots

Port Stephens Council requested more information of the developer, instead the developer appealed to the court

The developer submitted their DA to Council.

Council responsibly requested further information, given the Statement of Environmental Effects was largely inadequate.

Rather than responding, the developer took the matter directly to the Land and Environment Court (LEC), on the basis of a deemed refusal of the DA by Council. This may occur if Council has refused the DA or not made a decision within the required time (see LEC Q&A document p1).

The above DA was originally refused by Council on 1^st of May 2024. The refusal by Council relied upon grounds relating to biodiversity, subdivision design, access, flooding and drainage. Inadequate information was provided by the applicant to address the key Council concerns through the assessment of the DA, which formed part of the refusal.

The Commissioner facilitates a conciliation process with the intent to reach an agreement ~ which this situation achieved and the court upheld the appeal with a modified outcome.

Developer appealed to the Land and Environment Court (LEC) ~ a process in conciliation though outwardly not involving community perspectives.

The first stage of the LEC is a conciliation process (Section 34 hearing), whereby the commissioner facilitates conciliation between the parties. There is no assessment of project merit by the Court (LEC Q&A p6) As the Court is the consent authority, there is also no appeal process.

The court-facilitated negotiation is between the Council staff and the developer to achieve their desired outcomes. Elected Councillors are not part of the process. If Council did not conciliate, it is possible that legal and court costs could be significantly greater, which then impacts the entire community through our rates.

This process does not meaningfully consider community perspectives (LEC Q&A p8-9), including that of democratically elected councillors. Councils may informally involve objectors as part of the council’s participation (but the council is not obliged to do so) and may believe they represent objectors views.

Some community members believe this process is contrary to the EP&A Act which requires all developments to be assessed by the consent authority based on merit (EP&A Act S4.15) with consideration of community perspectives (EP&A Act S2.22).

AB Rise vs Port Stephens Council [2025] court upheld the appeal.

Land and Environment Court (LEC) decision was made public on 18 March 2025

Read here LEC decision of March 2025

AB Rise Stage 1 at 263 – 231 Gan Gan Rd, Anna Bay, appeal was upheld in the LEC Court.

The Court orders that:

(1) The appeal is upheld.

(2) Development application 16-2023-583-1, as amended includes the subdivision of the existing lots into 34 residential lots and 5 residual allotments, provision of internal access roads, ancillary earthworks, stormwater management infrastructure including infiltration basins; and a bioretention basin at 263 – 321 Gan Gan Road, Anna Bay.

(3) Pursuant to s 8.15(3) of the Environmental Planning and Assessment Act (1979) the Applicant is to pay the costs of the Respondent that have been thrown away as a result of the amendment of the Development Application, as agreed or assessed.

See the summary below of the amended development application

As part of the conciliation process, the applicant amended the subdivision design and provided detailed studies and reports to address Council’s grounds for refusal. The submissions of objectors were also taken into account by Council and the applicant in the design of the amended development.

Reduced the size of the proposed subdivision. The subdivision was reduced from 47 lots to 34 lots. The reduced footprint was primarily to address Council’s ecology concerns regarding the impact to and proximity to the powerful owl, habitat connectivity and works within the conservation zone. The revised subdivision footprint facilitated additional native vegetation to be retained and reduced impacts on habitat connectivity for threatened species.
Preparation of modelling and significant further groundwater and flooding scenarios to demonstrate the subdivision is compatible with the flood function and behaviour on the land, and will not adversely affect flood behaviour in a way that results in detrimental increases in the potential flood affectation of other properties.
Amended Vegetation Management and Biodiversity Management Plans for the ongoing management of retained conservation lands.
Stormwater drainage design that will accommodate, and address, flooding within the immediate locality. This includes emergency outlet pipes and other infrastructure on the site, at developer cost, to assist flood management for nearby properties.
Construction of a roundabout at the new intersection with Gan Gan Road to the development (in lieu of a T intersection) specifically to address Council’s contention regarding traffic safety.
Additional landscape treatment to address objector’s concerns regarding presentation to the streetscape.
Provided 12.5m radius cul de sacs within the subdivision design to address concerns regarding refuse and emergency vehicle movements.

The amended DA was considered against the relevant planning legislation and Council policies through the Court conciliation process. Council’s planning, ecology and engineering staff supported the amendments as being sufficient to address the original refusal grounds.

Following the applicant’s amendments to address the grounds from the original refusal and agreement by Council, the Court disposed of the proceedings under Class 1 jurisdictions and resolved to approve the amended DA..

Stage 2. A rezoning proposal for 585 houses on 125 hectares

The rezoning overlaps the AB Rise Stage 1 site, continues north over the ridgeline and over the Main Drain and Tomaree’s Core Koala Habitat.

The process to rezone land from one land use to another is a 6 stage process. It is detailed in the Local Environmental Plan (LEP) Making Guideline (p16 provides a useful summary).

The developer has prepared a scoping proposal to rezone the 125ha of largely wetland and core koala habitat and corridor. Council is currently assessing this application. The assessment report and recommendations will be available for Councillors to discuss and vote at the Council meeting on 13 May 2025.

Notice to neighbours early in February 2025, advised that Council had received an application for rezoning which was being assessed and would be considered by the elected Council at a future Council meeting. It did not invite any community participation.

We are currently at stage 2 of the process. There is an opportunity for the developer to appeal via State Planning, if Council do not approve the rezoning. There’s no community participation until stage 5 public exhibition.

Figure 5 – Outline of Anna Bay Rezoning proposal for 585 houses on 125 hectares:

AB Rise ~ literally rising out of the swamp.

While there are many issues in building on swamp land, there’s a couple of particular concern and relevance to AB Rise, which claim the development is to be ‘affordable’ housing.

Let’s consider the amount of land fill and its affordability:

To protect the proposed homes and roads from flooding, the developers estimate the required landfill to be about 3m depth for each of the 584 blocks at 500m2, representing 1.2 million cubic metres of fill. This is approximately 120,000 truckloads, which at 50 truck loads a day would take 6.5 years.

Assuming a fill material delivery cost of $35 per cubic metre, the cost of fill would be $42 million. This increases the cost of the 584 homes by approximately $75,000 each, diminishing the likelihood of the homes being “affordable”.

Now let’s consider the Main Drain and suitability for development:

The Main Drain runs through the northern flat area and is proposed as part of the recreational zone. The water quality is poor, and at times toxic with high levels of aluminium and manganese plus high acidity reaching a pH 2-3 that can burn the skin. A hydrologist involved in the Anna Bay Catchment Assessment DPI 2008, likened living on the swamp as though beside a seeping sore. Homes may need sulphur-resistant concrete, creating more costs in addition to the land fill costs, certainly moving the houses out of the affordable low income homes bracket.

Imagine the potential runoff from 1.2 million cubic metres of consolidated fill and hardened surfaces! The potential impact on the now much lower-lying neighbours, who already experience flooding impacts, is horrendous.

Outraged community rallies ~ frustrated and fearing floods

Mon 7th April 2025 – WOW, what a turn out — over 130 concerned residents and community wanted to hear from Port Stephens Council about its rezoning and approvals process

The STCA greatly appreciated Council’s Steven Peart, Director of Community Futures, and some of his team, Bryn Cotterill and Ryan Falkenmire, for presenting and fielding audience questions.

Steve Peart walked the audience through the processes involving the application of rezoning of AB Rises to residential. He reported that the land is not identified in the Department of Planning Hunter Regional Plan 2041, the Port Stephens Council Local Housing Strategy, nor the Council’s Anna Bay Strategy and Town Plan.

“Rezoning the area has not been identified currently as a priority” Steven Peart said.

However it will be considered for approval or rejection by Port Stephens Council. Steven Peart did not see any reason at this stage to change that position.

Steven Peart said the land is highly constrained.

Community have outlined the constraints

It is the only remaining area of core koala habitat on the Tomaree Peninsula.
It is subject to flooding and climate change forecasts have it permanently underwater within the next 50 years.
It is a peat swamp, if lit can burn for months.
The fill required would significantly alter the natural flow of water into the Anna Bay Main Drain making flooding worse for existing neighbouring residents near One Mile and surrounds.
The Main Drain is already beyond capacity given its lack of fall which means that water cannot drain quickly.
Acid Sulfate Soils would be disturbed by any development making downstream water quality worse. Widening the drain would have a catastrophic impact on downstream water quality. This is already causing fish kill, impacting the marine environment and economic loss for oyster farmers.

Community also outlined the social impacts

An estimated imported fill for the site at 50 trucks a day would take 6.5 years.
The proposal is to rezone the area beside the drain as recreational.
- The drain water has a pH of 2-3, so any person or animal who were to fall in would likely receive burns to their skin and eyes.
- The drain would be difficult to fence or install means to get out of the drain given that the drain requires regular maintenance using heavy machinery to be effective, so there is a likelihood of drownings.
Anna Bay Public School has 310 students. It is estimated that such a development would likely house approx. 600 children. Where would they go to school? Childcare? Medical? No commercial services have been proposed..

The application for rezoning, we expect, to come before Council at their 13 May meeting.

The community is hopeful that Council’s assessment report of the rezoning request will be available at the meeting.

Steven Peart explained that if the Councillors ~

vote NO to rezoning, the applicant may appeal to Dept of Planning and have it heard by Hunter Regional Joint Planning Panel.
vote YES to rezoning, then the Dept Planning will do their own assessment and come back to Council with Gateway study and Dept Planning puts the rezoning application on exhibition

If the rezoning application goes on public exhibition, community then have the opportunity to object.

The meeting concluded with three motions put forward by the STCA. These were unanimously supported by community members in attendance.

1. That the meeting organisers write to each PSC Councillor on behalf of the community at this meeting asking that they do not support the rezoning of the 125ha of land in Anna Bay (AB Rise)

2. In response to the ad-hoc requests from developers who do not live in the community we request that the meeting organisers write to each PSC Councillor on behalf of the community at this meeting requesting that they prioritise the strategic planning process for the greater Anna Bay area; and the planning process be informed through collaborative meaningful community engagement.

3. We request that organisers meet with the State Member for Port Stephens requesting that she make direct representations to the Planning Minister, the Environment Minister and the Primary Industries Minister briefing them on the unsuitability of the 125 ha site at Anna Bay for housing, the likely environmental, social and economic impacts such a development if approved would have, and the sentiment of the local community.

It is critical that these ministers understand the environmental and social significance and that Kate Washington report back to the community via STCA at the May meeting with a response.

Organisers will follow through on the motions and keep you up to date with outcomes.

The next general STCA meeting will be held on Wednesday 16 April, at the Anna Bay Scout Hall on Fishermans Bay Road, commencing at 5.30pm.

Save the Date: Tuesday May 13 – attend the May 13 meeting at Port Stephens Council’s chambers when Councillors will vote on the rezoning application

Anna Bay community rallied in February and again in March 2025, voicing their many concerns

Anna Bay community rallies at meetings in February and again in March 2025 to the call from the South Tomaree Community Association (STCA).

Approximately 130 residents filled the hall to understand more of the threat to the welfare and social fabric of their community.

Anna Bay resident Mike presented at STCA’s February meeting.

Be sure to take a look at this sobering video showing flow-on flood impacts on adjoining land and its neighbours at One Mile, from this proposal to rezone 125 hectares of flood prone land.

Community voiced their many concerns ~ here’s just a few from the March meeting:

Who’s responsible if this goes wrong? Memory is fresh of the Lagoons Estate in Nelson Bay (reported here from NOTA), multi-million dollar payout to compensation, along with the cost of drainage solution being met by Council (our rates). STCA plan to followup implications for AB Rise impacts.
Following concerns of failed resort developments in Anna Bay ~ community queried what is the track record of developer, AB Rise? Unknown – no details about the developer are seemingly available.
“Spot” rezonings shouldn’t be allowed ~ consideration by PSC accepting rezoning viz other Councils. Anna Bay can’t cope with it.
Oyster farmer – explored the drain and creek outlet area, the width has increased 10 fold and a sand bank is now higher than mean high tide level, blocking drainage. Area used to be alive but isn’t now. Must contact Marine Parks, Aquaculture, DPI as major damage is evident now.
Landholder along drain on Nelson Bay Road spoke of aggressive and continuous landfill for housing over last 25-30 years that is affecting natural drainage. Main Drain Flood gates close at high tide. 1,000 acre catchment (more than rezoning site) to this drain and only 300ml fall of elevation from One Mile to Taylors Beach means water drains very slowly. If rain can’t drain flooding from the head of the drain from Frost Rd to Taylors, will impact many homes. Criticism from the floor of flood/drainage estimates being inaccurate viz trains not fitting tunnels. Landholder remembers seeing Hunter River overflowing into Tilligerry Creek in 1955 floods. Drainage issue paramount to prevent man-made catastrophic burden on residents.
Drainage Union Board says tidal gates upgraded 15 years ago and another 6 are probably needed. Developers should pay for this – approx. $2million.
Resident explained the dilemma of flooding occurring after road works and a swale were built opposite. Their attempt to sue Council failed. Now very anxious about flooding because the pump solution outside their home has failed to operate allowing floodwater inside. Cannot understand how it will be prevented.

With the final comment from the March meeting:
Take courage and fight this proposal. Anna Bay is worth a fight!

What can we do now?

In response to the planning proposal to rezone 125ha of flood prone land at Anna Bay, one of the great audience questions from the meeting was what can we do now?

Spread the news. Let your friends and neighbours know what’s planned for our area.
Join the South Tomaree Community Association. Come along to our monthly meetings on the third Wednesday of each month, 5.30pm – 6.30pm at the Anna Bay Scout Hall and be a part of our STCA community invested in the future of Anna Bay and surrounding areas.
Follow our Facebook page “South Tomaree Community Association Inc.” If you haven’t already, give us a like / follow.
Councillors are scheduled to vote on the rezoning at their 13 May Council meeting. Please share your concerns with each of the Port Stephens Councillors. If rezoning is not approved, the developer may choose to take their rezoning proposal to State Planning / Housing Delivery Authority. Ensure Kate Washington MP is aware of your concerns.