Spokeswoman for Maitland City Action Group Linda McLean said the group is against a two-storey council-owned licensed restaurant proposed for the site.

She said this will be council’s fifth eatery and will directly compete with existing eateries and hotels in the city centre.

She claims council will use dollars generated from the Maitland mall levy to fund advertising for its latest dining venture and said the development in its current form will have inadequate toilet facilities for the 128 people it is tipped to cater for.

Maitland City Council general manager David Evans and Mayor Peter Blackmore have declined to comment.

Maitland businessman John Lee, whose shop is on the fringe of The Levee, said council has not properly addressed Maitland’s parking issues in the second stage of the development.

“We have 12, half hour car parks. Does this mean once again the helpless traders have to carry the burden of reduced trading after enduring the last 14 months of disruption to their business? I listen to customers complaining about the lack of parking. I also have elderly customers saying they do not come to Maitland because they are too scared to walk up from Kmart parking as the pavement is uneven to walk on,” Mr Lee said.

Earlier this month Ms McLean vowed to take Maitland City Council to task over the next $9.9million stage of The Levee she claims does not comply with development application regulations.

Ms McLean, who is an inner city property owner, has been vocal about several aspects of the project including the controversial kiosk (The Hatch) constructed during stage one.

Last week, she forwarded the development application for stage two to The National Trust and state government. “Maitland City Action Group will ensure that stage two does not sneak through without community awareness. It’s very sad that this project was approved without the community knowing that the primary usage would be a licensed restaurant.”

Ms McLean said “regretfully” she is selling her property, which houses The Orange Tree Cafe on The Levee. She said her building was “rescued” and turned into an eatery in line with council’s vision for the revitalisation of the city centre.

The rally starts at 3pm at The Hatch.