Ongoing testing, according to a Port Stephens Council spokesperson, suggests that "construction [of the three-storey structure] did not did not match the original plans".

Built in 1991, periodic visual inspections have been carried out by independent assessors and any cracks immediately sealed.

"In mid-2014, invasive (or destructive) testing was conducted and structural weakness determined, not concrete cancer as was previously thought," the spokesperson said.

"Beams were meant to be parallel but were cross-hatched, and reinforcement found to be missing or in wrong location. Also, vehicle sizes have increased since 1991, adding weight to the car park."

The spokesperson said the estimated costs to repair were very expensive and alternative car parks were chosen. CBD business owners say they are losing money every day as council pushes to have two new car parks in Donald Street and Government Road operational before the peak holiday period.

"The car parks are scheduled to be open mid-December . . . between now and Christmas."

Businessman Peter Sherriff said the current situation is the worst he has faced in 25 years of business in the Bay.

"We are not going to get compensated for the loss of business but I thought council could have dispensed with the metered parking along the marina until the opening of the new car parks, providing motorists with temporary free parking," he said. A council spokesperson said this option was considered.

"The metered car parks are provided to allow a turnaround of people into the CBD area to look after businesses, so we discarded this as an option."

Both Rory Milne, with 35 years business in Nelson Bay, and Gary Ramponi, who sits on the Nelson Bay District and Business Association, believe the time is right for council to spend more money in the CBD.

"What's happened to the money from the parking meters?" Mr Milne asked.

"It seems to me the only money being spent by council is along the waterfront, not in the CBD where it is needed most."