Councillors to vote on proposal to transform suburb into 'health hub'

The first step in transforming a Lake Macquarie suburb into the city's first medical precinct is expected to be rubber-stamped on Monday night.

Lake Macquarie councillors at the standing committee meeting will vote to place the draft Gateshead Medical Precinct Planning Proposal and accompanying Development Control Plan Area Plan on public exhibition.

The proposal aims to rezone large chunks of Gateshead around the Lake Macquarie Private Hospital from R3 Medium Density Residential to E1 Local Centre.

This would also increase maximum building heights and remove minimum lot size controls.

The area identified for the medical precinct includes Sydney, O'Brien, Casey, Jamieson, Goundry, Church, Jennings and Oxford Streets to the west of the hospital, as well as The Crescent and Schroder Avenue on the eastern side of the Pacific Highway.

The maximum building height would be increased from 10 to 15 metres across the majority of the site.

The land immediately adjacent to the hospital - Sydney Street and parts of Goundry and Jamieson Streets - would see its height limit extended to 22 metres.

In April 2023, Lake Macquarie City Council endorsed a planning proposal for the hospital to extend its maximum height to 37 metres.

Lake Macquarie mayor Adam Shultz said the proposal was about preparing Gateshead for the future health needs of residents.

"In terms of the proposal, it's strategically looking to increase building heights, creating a broader mix of land uses for medical and allied health facilities and related businesses such as pharmacies, physiotherapy, dental and psychology clinics and retail offerings like florists and cafes," Cr Shultz said.

"It also offers a little bit of medium-density housing, townhouses and mid-range apartments.

"We're looking to really develop that surrounding precinct where it really becomes a health hub for Lake Macquarie, which is incredibly important given our growing population, but also our ageing population.

"It should also stimulate job creation as well as tie into those housing density goals and safer pedestrian connections in that precinct."

Last year the NSW Independent Planning Commission approved plans from Ramsay Health Care to expand the Lake Macquarie Private Hospital.

The $45 million proposal would expand the hospital to six storeys, which includes an additional 40 inpatient beds, a ground-floor medical imaging suite, and a new hospital drop-off and pick-up on Casey Street, along with 20 parking spaces.

Ramsay Health Care also has approval to add an additional four storeys to the hospital.

Cr Shultz said the transformation of Gateshead's medical precinct was a long-term project and was not about driving residents from the area.

"With our housing diversity proposals amending and reducing the lot sizes and increasing the height, if and when people want to relocate out of the area, then their land should be significantly more valuable for medical businesses and purposes in the future," he said.

"It's a slow burn, but it's the vision for the city to create a health hub right there in Gateshead that people can be proud of and ensure that Lake Macquarie is putting its best foot forward in the health and medical space."

A spokesperson for Ramsay Health Care said the company was supportive of the precinct plan.

"We welcome the concept of a great medical precinct in the Gateshead area which will strengthen the ability to meet future Lake Macquarie community health care needs," they said.

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