Councillors at the May 24 meeting voted 8-2 in favour of modifications to the $35 million, nine-storey development, previously known as Manta Ray, despite a 52cm breach of the 30.6m height limit.

The council had approved the original DA at 1 Yacaaba Street - which comprises basement carparking, ground floor commercial space and 56 residential apartments - in July 2019.

The site was later purchased by Sydney-based Rock Form Group, which is fronted by Daniel Abdallah, who renamed the building Angelina in memory of one of three children the family lost in horrific circumstances in Sydney's Oatlands in February 2020.

Mr Abdallah said he was excited about what the development would bring to the Bay in terms of economic benefits, new jobs and a revitalisation of the town centre.

"Bringing more people into the town centre will give businesses a boost in the quieter months and we aim to be using as many local tradies as possible during construction. All going well we expect that the building will be ready for occupation in June 2024."

Selling agent Jason Brennan from LJ Hooker Nelson Bay said that the development would be an outstanding new landmark in the CBD.

"It offers easy access to the shopping precinct and marina and easy level walk to the waterfront," he said.

"Prices start at $650,000 and have sold 35 apartments off the plans, including many buyers. The commercial premises are also still available for sale by expressions of interest."

Councillors Chris Doohan, Leah Anderson and Glen Dunkley said they were satisfied with the height breach as being "negligible".

Only councillors Giacomo Arnott and Peter Francis voted against approval, citing inconsistency with the council LEP [in reference to the height].

The modifications contain increased onsite parking, which according to Cr Glen Dunkley, would "ease the car parking burden in the area" and he added that the mix of one, two and three bedroom units would "make it more appealing to families and couple alike".

For Cr Anderson, the $802,256 in development contributions would provide a windfall for Port Stephens, with the funds expected to go towards local works and fees.

Tomaree Ratepayers & Residents Association convenor Nigel Waters said that while they were disappointed with the increase in height, "we note that it is relatively minor (51cm)".

"Building height limits had become the most contentious issue in the Bay in recent years, where the height limit in parts of the town centre had nearly doubled, from 15 metres to 28 metres," he added.

In September 2019 Port Stephens Council amended its Local Environmental Plan by increasing building height limits in the Nelson Bay town centre from 15m to 28m.

The main changes to the original development approved by councillors on Tuesday night included:

The block of land was purchased in September 2017 as a deceased estate and has served as a council car park since 2014.

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