The Dutch-born councillor, who will turn 69 before his tenure is up next September, said he regretted the "inept handling" of the controversial Salamander Bay shopping centre development in the 1980s.

"It was a tumultuous time on the council and I voted to approve the development ... which in hindsight has hurt some businesses in Nelson Bay," Cr Nell said.

"But I see a lot of positives for the Bay with the new Woolworths supermarket and the redevelopment of the two Donald Street car parks expected to rejuvenate the CBD."

Cr Nell, who served nearly two years as mayor from 2002-04, said that future amalgamation of councils was inevitable and Port Stephens should be preparing for a merger.

He described his current term on council as "frustrating when it comes to environmental and planning issues", while lamenting that "sometimes you have the numbers and sometimes you don't".

"But there is no point in poking a stick at your fellow councillors ... this is not like Parliament where you have a government and an opposition, on council everyone should work together."

Cr Nell, who has sat on numerous sporting, environmental, marine, foreshore and parks committees, said he was proud of his contributions to the council, particularly in the areas of environment protection and estuary management.

"We have the most beautiful and unique environment and we should not wreck it. It should be looked after and passed on to our future generations."