Port Macquarie-Hastings Council's Development Assessment Panel (DAP) granted deferred commencement consent to the caravan park development application at a meeting on Wednesday, April 5.

The deferred commencement consent is due to the project's reliance on completion of an access road approved under a separate development consent.

The panel members heard from speakers before making the decision.

The caravan park on the former theme park site off Parklands Close will have one short-term site and eight long-term sites after the plan was amended during the lengthy assessment process.

An existing building will be converted into a community building with laundry and storage areas.

There will also be associated access roads, car parking and landscaping.

The council received 136 submissions and an e-petition with more than 31,500 signatures objecting to the proposal following exhibition of the application on three occasions.

About five speakers outlined their concerns at the panel meeting.

An objection was raised relating to the area known for koalas, and concerns that a change of road access would increase the risk of vehicle strike.

Other issues raised at the meeting included concerns about wildlife more generally, lighting on the site, parking congestion at Shelly Beach, the need to preserve bushland and questioning the community facility's hours of operation.

In response, the conditions of consent include lighting and restricted opening times of the community facility.

Susan Blake from consultancy Land Dynamics said they had reviewed community feedback and responded to concerns, as well as worked cooperatively with the council and government agencies to amend and update the plans.

Ms Blake described the caravan park as a small-scale positive development.

Karl Robertson from Biodiversity Australia said koalas on the site had been assessed under many different assessment levels.

Mr Robertson said there were lots of mitigations on top of small impacts.

Panel member Dan Croft said the council was acutely aware of the significance of koalas in the Port Macquarie area, and the council's ecologist had reached the position where the proposal met the requirements.

The panel's independent chair, David Crofts, said he understood the concern generally in the community about koala habitat.

"The thing that struck me with this development was the very light footprint that's going to be placed on the site, [which] in regard to scale is very modest," he said.

Mr Crofts said the caravan park's individual dwellings will be part of a separate process.

The caravan park is a component of the overall vision for the site's future.

Buildings from the site's days as Fantasy Glades have been restored, not for use as a theme park, but in recognition of the nostalgic significance.

There is also a plan to convert the former Cinderella's Castle into a cafe.

That is covered under a separate development consent.

IN OTHER NEWS: