The Sweetwater Action Group (SWAG) lodged a challenge against PlanningNSW and the developer, LWP Property Group, in relation to the revived proposal in the Land and Environment Court yesterday.

Plans for the first stage of the rejuvenated development to include up to 2020 new dwellings

and 60 hectares of employment lands went on public exhibition last week.

Group spokesman and Cessnock councillor Chris Parker said SWAG was still “unhappy with bias, and we have quite a few other issues as well”.

Court action by the group quashed the project the first time.

Cr Parker said the Environmental Defenders Office would return as the group’s legal advisors in the second challenge.

“The decision to actually challenge again is not something we’ve taken lightly,” he said.

“We spoke long and hard with the Environmental Defenders Office, and we’ve had sound advice that tells us we have grounds to mount a legal challenge again.”

Huntlee New Town, touted as the state’s biggest housing project, collapsed in October 2009 when then planning minister Kristina Keneally admitted she acted unlawfully in approving the 7200 home proposal.

Planning NSW wrote to lawyers acting for SWAG four days before the court case was due to begin on October 19, conceding the minister took into account irrelevant considerations when approving Huntlee, that there was a reasonable apprehension of bias on the part of the minister when granting approval and that the approvals should be quashed.