The panel outlined its position following a lengthy teleconference on Thursday November 5.

Panel chair Paul Mitchell said it had refused the application on four grounds - the proposed onsite parking is not sufficient; the proposed arrangements for supplementary car parking are unsatisfactory; the aspects of the proposed access arrangements are unsatisfactory; and the panel considers the proposal is an overdevelopment of the site.

The level of car parking availability and access were the two major stumbling blocks during the hearing.

The Planet Warriewood/United Cinemas development was planned for the corner of Warlters and Park streets.

Seventeen speakers addressed the hearing - with just two in favour of the development.

The speakers opposing the development covered topics including traffic, noise and air pollution along with the development being not in keeping with the amenity of the area.

Marie Lamb said the development was on key waterfront land, was "inward-facing" and not in keeping with the area.

Chris Denny, speaking on behalf of the Greater Port Macquarie Tourism Association, said there was potential negative impacts on car parking. He also pointed to the role of Westport park in hosting major events, including markets, concerts and displays.

Bay Park Gardens residents Kate Hutchinson pointed to the number of car accidents at the Bay and Warlters street intersection. She suggested accidents would only increase if the development were to go ahead.

Resident John Rutter raised his concerns about the number of existing multi-use businesses currently operating within a five kilometre radius of the planned development.

"And there's a number of empty shops in that same area, too," he added.

Renea Roots, speaking in support of the development, said she believed the developers had been "sensitive to the needs of the community".

Another speaker in favour of the development, Jarrad Lawless, said the development provided good parking options, particularly for those with disabilities.

Planet Warriewood/United Cinemas CEO Sam Mustaca said his company was excited about the project and believes the community is currently under-serviced for cinema access.

"We want to bring the biggest and best cinema experience to the people of Port Macquarie," he said.

"We will work holistically with the other cinema operators (Majestic Cinema), we will co-exist."

Founder Roy Mustaca said Port Macquarie residents "will love what we can offer them".

"They will get jobs and the very best cinema possible," he said.

However, much of the argument centred on car parking, particularly during "blockbuster" screenings.

A traffic engineer for the proponents, Craig McLaren said he was satisfied that the development application had covered the issue.

"Five out of seven days the development will cater for parking," he said.

"Peak times will be Friday evening and Saturday lunchtime and evening.

"The probability of car parking demand is minimised and would only be increased when a blockbuster was being screened."

Environmental law specialist Aaron Gadiel from Mills Oakley, speaking on behalf of the proponents, said he had forwarded council a letter from MPG Funds Management, owners of the Kmart site, giving consent for carparking use.

Port Macquarie-Hastings Council said it had undertaken a number of observations in regards to car parking including a detailed survey on a normal shopping day in November 2019.

"That found quite a big difference with what was put in front of us (in the development application)," council said.

Council also raised concerns about a right turn from the development.

The development proposes cinemas, function centre, manager's residence, amusement centre, gym, indoor bowling, restaurant and food and drink outlets. There will also be retail, carwash facility and basement car park.

The planned entertainment centre would sit on around 5771 square metres.

There were 291 submissions received during three exhibition phases with the proponents amending the DA on a number of fronts.

When the DA was lodged, the community appeared split on what kind of impact the proposed development would have.

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