At the June monthly ordinary meeting in Forster, council's unanimous decision was met with enthusiastic applause from the gallery.

The planned project, put forward by Wales and Associates, Ettalong Beach, was for a 202 lot estate over 10ha on Black Head Road.

The 'lifestyle' site promised affordable living primarily to the retired and elderly.

Council earlier rejected the proposal in 2017.

However, the applicant lodged an appeal with the Land and Environment Court.

Speaking before the council decision on behalf of the applicants, Island Point Plantation, Brichris Pty Ltd and John Earning, Wales and Associates director Matthew Wales said he was disappointed with council's recommendation to again reject the request.

"The facts are simple, it is clear of native vegetation, it is not a koala habitat and it complies with SEP 32," Mr Wales said.

Mr Wales also said the developers would provide a full range of services including transport.

However, according to MidCoast Council development assessment manager, Bruce Moore, the development did not comply with a range of conservation and social policies.

"The broader public interest is not considered to be served by the proposed development given the likely detrimental impact on threatened species and their habitats and the potential for the development to enhance social isolation largely as a result of the limited transport options available in the locality."

Black Head resident Les Burke described the project as an inappropriate development for Tallwoods.

"It is right out of character," Mr Burke said.

"As a group in Hallidays Point we cannot see the demand for this development."

Mr Burke said there were a number of MHEs throughout the Great Lakes and Manning.

"There is no shortage of these facilities around."

He also said Hallidays Point did not have the infrastructure to support such a project.

"There is virtually no doctor, everybody goes to Tuncurry, Forster or Taree, we have FoodWorks and a couple of take-away shops and there is no regular bus service."

Scott Pearse from Pacific Palms spoke on behalf of the MidCoast Appropriate Development group, a coalition of residents from Green Point, Tallwoods and Pacific Palms united against MHE development in rural and isolated locations.

"The heart of this issue is reflected in our group's name," Mr Pearse said.

"We believe in a highly functional, appealing, affordable, and most importantly, appropriate future for the Mid Coast LGA."

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