The $52million Fern Bay Seaside Village is part of the Lower Hunter Regional Strategy to accommodate the region’s projected population growth.

NSW Planning Minister Tony Kelly is expected to announce the decision today.

The Aspen Group is building the project as a staged land release and has already developed about 200 lots.

The village, when completed, could contain as many as 900 homes built over eight years.

“This next stage of the Fern Bay project is consistent with the government’s strategy to provide up to 66,000 new jobs in the Lower Hunter area over the next 25 years,” Mr Kelly said.

‘‘The development will also incorporate two sites for commercial facilities and a site for a recreational or community facility ensuring the development results in not only more houses but a neighbourhood as well.’’

Mr Kelly said the Aspen Group had made some changes following community consultation, including reconfiguring the road layout, relocating pumping stations to minimise vegetation clearing and redesigning a stormwater management system to protect ground and surface water.

The government will impose nearly 80 conditions, including that the Aspen Group will have to rehabilitate about 31hectares of wet heath. The vegetation is of high conservation significance.

‘‘The proposal intentionally avoids development of the site’s most environmentally sensitive parts,’’ Mr Kelly said.

‘‘And an ecological offsets package which includes rehabilitation works in the adjoining Worimi Conservation Area will prevent there being any loss of biodiversity.’’

The Aspen Living website has described the development as 15 minutes north of Newcastle and naturally beautiful.

‘‘[It is] Where protected corridors of retained bushland combine with pristine sands to create a beachside village community where life and living come first,’’ it says.

Aspen Living chief executive officer Chris Lewis was unavailable for comment yesterday.