A CONTROVERSIAL Taylors Beach site which was illegally cleared more than seven years ago, and was the subject of another investigation in 2012, has been approved for a $10 million industrial development.
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It has again sparked concerns from wildlife groups that koalas in the area could be hit by cars and killed.
The land at 60 Port Stephens Drive, Taylors Beach, was approved for two bulky goods warehouses, two carparks and a three-lot subdivision by Port Stephens Council last month.
It is the same land which was the subject of a Land and Environment Court decision in August 2011.
In the judgment, environmental consulting company Orogen Pty Ltd was found guilty and convicted of illegal clearing and destruction of koala habitat.
Hunter Koala Preservation Society president Sue Swain said 75 per cent of koalas hit by cars and rescued by the group were found along the Port Stephens Drive stretch.
"After the clearing we found nine dead koalas in three months," she said.
The Office of Environment and Heritage (OEH) again investigated claims of illegal clearing on the land in 2012 but OEH spokesman Lawrence Orel said no charges were laid.
"The 2012 investigation found that area of land was slashed, but slashing is not clearing unless the vegetation dies," he said.
"A letter reminding the land owner of their obligations under the Native Vegetation Act was sent."
Port Stephens Council's development assessment and compliance manager Matthew Brown said the council was aware of the legal proceedings but the environmental concerns had been addressed.
"Through this process there were mediated outcomes that recognised the importance of the wildlife corridor," he said.
"The DA [development application] as approved is consistent with these outcomes."
But Port councillor Geoff Dingle said he would have liked to have seen the application come to the Port Stephens Koala Management Committee for comment. To his knowledge it had not.
He said he had formally complained about the lack of development applications coming to the committee for comment.
Ms Swain said she would wanted to see the koala feed trees, which still stand on the property, remain and new trees planted as part of the work.
The conditions of consent for the development state that a vegetation zone be set aside as a rehabilitation area and that fencing be installed and/or repaired around the perimeter of the entire area.
One hundred tube stock of native trees must also be planted within the rehabilitation area to the satisfaction of council staff.
