There was applause from the public gallery as the motion by councillor Tim Crakanthorp was carried with support of Labor, the Greens and independents Allan Robinson and Andrea Rufo. It also requested an opening briefing from council officers – who have supported the rezoning – a public voice session for residents and that the State Government respond to a council resolution passed in July requiring a comprehensive transport solution be developed for the city before the land was rezoned. 

The rezoning would allow for mixed-use development, public recreation, educational and tourist uses of the corridor, and Cr Crakanthorp said given the issue’s significance, all views needed to be “transparently aired”. That had been “severely hampered” because council’s report had been late to go on public display and councillors were absent from a confidential UrbanGrowth briefing last week, he said. 

“Then we can move forward with the confidence of the community,” Cr Crakanthorp said. 

Property Council of Australia Hunter Director Andrew Fletcher said he was dismayed at the deferral, warning it would halt momentum on the revitalisation of the city centre and jeopardise the $2 billion of investment in the pipeline. 

He said Labor and Greens councillors were being held ransom by “noisy minority groups” and did not appear to recognize that community consultation would occur further along in the rezoning process. 

“Over the past 48 hours, the Lord Mayor has stood shoulder-to-shoulder with the Premier on various funding announcements and the local MP has claimed credit for a new $12.7 million cruise ship terminal, but on Tuesday night they put the NSW government’s vision for Newcastle on ice,” Mr Fletcher said.  

“It is hard to know if this is petty politics or just plain ignorance.” 

But spokesperson for the Hunter Concerned Citizens Group David Blyth welcomed council’s decision, going as far as to describe the meeting as a “watershed moment” where residents were being “re-admitted to the conversation” about the future of the rail corridor. 

He said it was not reasonable to expect the community to be able to read a dossier “the size of an encyclopedia” the day before the council meeting and the group believed the majority of residents were in favour of using the existing corridor for transport. 

“What really got our back up was UrbanGrowth went to a council meeting that was closed door and not well-attended by councillors,” Mr Blyth said. 

“We’ve had this phony community consultation with results produced on glossy brochures which has really been quite rigged. 

“It’s quite a battle to try and knock over the juggernaut that is UrbanGrowth. 

“We’re very keen to have an opportunity to make some sort of a presentation in an open council meeting.” 

Under the rezoning proposal, lodged with council by UrbanGrowth in July, a 4.25 hectare section of the rail corridor would hold at least a dozen buildings and three new parks. 

It’s understood a confidential UrbanGrowth briefing on the plans last week was attended by councillors Nelmes, Clausen, Osborne, Posniak, Dunn and Compton. 

Cr Nelmes said it was important the community was aware that the process of rezoning the land would be a lengthy one, that would have to go through a gateway determination process and through a further round of community consultation before it returned to council for a final endorsement. 

“This is only the first stage,” she said.

Liberal councillors David Compton, Sharon Waterhouse and Brad Luke voted against the deferral of the rezoning. 

After the meeting Cr Luke described the decision as an “absolute shame”. 

“This further politicizing and opposing, solely for political benefit, is just damaging to Newcastle,” he said.