Located at 21 Fullerton Cove Road, the site is next to The Cove, an over-55s retirement village, and near an existing caravan park.

It is owned by Bendlink, a property development company owned by Michael Constantine, the brother of former Newcastle Jets owner and businessman Con Constantine.

Warners Bay company JW Planning is handling the application and senior planner Paul McLean said, while the park was not solely for retired people or over-55s, he imagined it would appeal to that market.

"It's not explicitly targeted for them [seniors] . . . but this type of development attracts that type of use," he said.

He said for retired people who wanted to spend the majority of their time travelling and just wanted to use it as a base, it would be ideal.

Mayor Bruce MacKenzie said he thought the development was good news for the area.

He said the land was part of a larger dairy farm years ago, which he worked at when he was a teenager, but had been sitting unused for some time.

Mr Constantine said he had owned the property for 15 to 20 years and was going to sell it to the developer of the neighbouring land at one point, for use as a nursing home, but those plans fell through.

About 18 months ago he and JW Planning started working on submissions for a caravan park.

The application was lodged with council in September 2013 and was approved on March 11.

Mr Constantine said if all went well work should begin at the site by the end of the year.