The site will now be included in the Maitland Urban Settlement Strategy and will soon be considered for rezoning.

Brad Everett, a Morpeth Land Company director, said the council report “was not balanced” and urged the councillors to support the proposal.

He said the company was “trying to get the best outcome” and “not seeking to have the land rezoned”.

The council has confirmed a proposal to rezone the land general residential and build 22 to 30 high-density homes will be put before the councillors at another meeting.

Vocal Morpeth residents filled the chamber and urged the councillors to “protect the heritage of the village”.

Hunter developer Hilton Grugeon, who came to support Mr Everett, sat among them.

Resident Heather Berry said development on the site would be “at odds with the recreational facilities adjacent to it”.

“The council staff recommended against it and this recommendation is strongly backed by peer reviews by independent experts,” she said.

Mayor of Maitland, Cr Peter Blackmore, threatened to remove the vocal residents from the chamber as the councillors debated the issue.

The residents voiced their opposition to the councillors who disagreed with the report and cheered and clapped for the four Labor councillors who refused to support the plans.

Councillor Loretta Baker said the fringe of Morpeth was important to the town’s history and the history of the nation.

Councillor Henry Meskauskas questioned why councillors, who normally agreed with the council experts – and praised their advice – were criticising the report.

“Here we are picking it to threads when all the officers reports indicated this is not the time.”

Councillor Bob Geoghegan said the councillors were “trying to get the best outcome” and housing on the site was not as bad as a hotel or motel, which was allowed under the current zoning.