Following the public notification of the planning proposal in January 2019 for a potential residential subdivision located at the cleared site on Point Plomer Rd and Crescent Head Rd, a number of amendments have been made in response to the submissions received and an amended Gateway Determination to enable these amendments to be considered has now been issued by the State Government.

Councillors discussed the motion at Tuesday's council meeting and resolved to place the amended planning proposal (KLEP2013-AM-1) and the draft amendment to Kempsey Development Control Plan 2013 (draft Chapter D5 - Crescent Head Urban Investigation Area) on public exhibition for a minimum period of 28 days.

Councillor Mark Baxter spoke for the recommendation at the meeting and said the proposal to build a residential development site at Crescent Head will allow for more permanent residents in the village.

"I'm so happy this plan is finally happening, not only will it address the excessive amount of holiday houses at Crescent Head, which causes a lack of affordable housing, it also prevents Crescent Head from turning into a retirement village," he said.

"Getting new houses will hopefully allow more young families to move to Crescent Head and will address the aging of the village. It will be a boost with the school and the local economy."

Councillor Leo Hauville spoke against the motion and said there is still concerns in the community regarding the proposed residential development site.

"From the submissions that were received, there is a strong position by many people who are against the size of the blocks.The developer has changed it from 500 square metres to over 600 square metres," he said.

"We have a large opposition to this plan in the community and I have to say if this is carried today, it's going to be a problem for council to cater for these oppositional views.

"Will be taking submissions for 28 days and hopefully we will get a lot of responses from the community."

Through the first exhibition process in early 2019, 360 submissions were received. The proponent has made a series of amendments to the planning proposal in response to the submissions received.

Having amended the planning proposal and supporting material against the earlier public submissions and agency responses received - it is considered that:

The amended planning proposal will go on public exhibition in the coming weeks and will allow the community to express their thoughts on the plan.

Councillor Bruce Morris said this is another chance for locals to have their say.

"We have a developer who has listened to the community concerns and amended the plan. The community has another opportunity to have a look at it and provide their responses," he said.

Following the public exhibition of the amended plan, council staff will consider the submissions received and prepare a report to a future council meeting for discussion. After the consideration, council may decide to finalise the amendment, with or without further changes, or not proceed any further with the proposed amendment.

Alternatively, council also has the delegated authority (granted through the Gateway determination) to determine that this plan not proceed further and that it be withdrawn.