The developer wishes to build 10 hillside units with groundfloor car parks beneath it.

This would replace the ageing units at 31 and 31A Leonard Avenue.

Residents were notified of the plans in a Port Stephens Council advertisement on December 22.

Six units at the rear of the complex would have balconies.

Tomaree Road residents Russel and Marilyn Williams worry that future tenants would be able look straight into their backyard and living room.

“It’s disappointing – unacceptable, really – that council allows for public notification to occur of the Christmas-new year period, particularly for a development that has such an adverse affect on neighbouring properties,” Mr Williams said.

The couple contacted council on the Friday shortly before it entered the Christmas shutdown to seek an extension.

“We’ve tried to contact development consultants and legal services to prepare a submission against this but they’re all closed down and won’t reopen until Monday (January 9),” Mrs Williams said.

“That would only give us two days which isn’t long enough.”

Mr and Mrs Williams noted that Sydney councils such as Ku-ring-gai require developers in similar situations to have their plans on notice until February to give neighbours sufficient time to respond to such plans.

In response the council has extended the deadline by nine days.

“Council has advised we will receive submissions up until January 18,” a spokesman for the council said.   

“In our view this provides sufficient time to compile and submit correspondence to council in relation to the proposal.”

Over the Christmas period Mr and Mrs Williams, along with their next door neighbours Tony and Angela Athas, have collected more about 300 signatures on a petition against the development.

They have also sought preliminary advice that the development doesn’t comply with the state planning instrument or the R3 residential zoning that applies to Shoal Bay.

“It’s a development in limbo,” Mrs Athas said.

“It doesn’t fit the definition of a multi storey or townhouse category, what they’ve pitched is pieces of both.”   

The council spokesman said it was still early days in the assessment process.

“Assessment of the application has not commenced. Accordingly, Council does not have a position on the suitability of the proposed units,” he said.