The developer behind a controversial high-rise opposite Newcastle Art Gallery has cut the height of its proposed towers and slashed the number of apartments by about 25 per cent following community backlash.
But residents say the changes don't go far enough.
Vivacity Property originally proposed two high-rise towers on the former Channel 10 building site, with the taller Darby Street tower reaching 45 metres.
More than 330 submissions were made by City of Newcastle, public authorities, community groups and individuals, with many arguing the height and density were excessive and incompatible with the area's character.
Vivacity founder and managing director Jonathon Steggles Mendez said the proposal had been changed after listening to residents and working with the NSW Department of Planning.
"Darby Street is one of Newcastle's established commercial main streets, and this is a State Significant Development (SSD) on a key inner-city site," Mr Steggles Mendez said.
"The amended scheme is designed to sit within that context while stepping down toward the lower-scale residential and heritage interfaces on Tyrrell Street.
"It also delivers activated retail frontage, public domain improvements and a new pedestrian crossing."
Under the revised plans, the Darby Street tower will be 39.05 metres tall, still almost 2.8 times the site's 14-metre height limit.
The Tyrrell Street tower will be reduced from eight storeys to six and the total number of homes has been reduced by 28, from 113 units to 85.
Cooks Hill resident Jane Dickinson, who has been working closely with other community members to understand the potential impacts of the project, said taking one storey off the Darby Street building "just doesn't cut it".
"It is still a really poor design, and it'll still grossly dominate this corner of the civic precinct," Ms Dickinson said.
"It's not good enough for Newcastle, and we need to send that message to Sydney."
Ms Dickinson also called on Newcastle lord mayor Gavin Morris to "stick up" for the city.
"He's always keen to meet the ministers and the premier when they're in town. Now he needs to use that relationship to stand up for the city," she said.
"This is a really special part of the city precinct. The developer knows it, council planners know it, and there's silence."
Cr Morris said the council is pushing for greater control over SSDs, and made its own submission raising concerns about the project's substantial departures from the city's development standards.
"We are in full support of the Darby Street residents, and we've made that perfectly clear," he said.
"Our hands are tied until some form of power is returned to council to have a greater say on these SSDs.
"If they want change, they have to go to the state government. They need to be advocating to Tim [Crakanthorp] on this."
Newcastle MP Mr Crakanthorp said he has met with residents and raised their concerns with the minister on a number of occasions.
"I share some of the community's concerns on the suitability of this proposal and will continue to advocate and raise those concerns," he said.
A total of 29 submissions were made in support of the proposal, saying it would provide more housing close to the CBD, jobs and services.
The amended proposal reduces the building's height and bulk, increases setbacks and is designed to help reduce overshadowing, visual and privacy impacts.
The estimated cost of the project has dropped from $114 million to about $99 million.
Mr Steggles Mendez said Greater Newcastle is facing an acute housing shortage and his project can help address the issue.
"This proposal will contribute to 85 new homes close to jobs, public transport and services," he said.
"Vivacity looks forward to the department's assessment continuing through the SSD process, where these matters are rigorously and independently examined."
