POD Projects and the ACT Planning and Land Authority reached an out-of-session agreement whereby the developer is required to make amendments to its design.

The developer had sought to build 107 dwellings on a block in Coombs that was earmarked for 40 dwellings, but the agreement stipulated only ten units would be required to be removed.

Building height would also be revised with a seven-building required to remove two levels. This would mean the removal of a proposed rooftop gymnasium.

Other changes included increased car parking, landscaping and more communal green spaces.

The application was a second attempt for POD Projects. Previously, the developer had proposed 123 units for the block.

The site, at the Arthur Blakeley Way and Colbung Street intersection, was sold to POD Projects for $3 million via the ACT Land Development Agency in 2017.

In its notice of decision for the rejection of the 107-unit complex ACT Planning and Land Authority cited the number of units would impact of street parking and traffic congestion. It said the revised application was "not substantially different from the original".

The decision stated the "proposed increase in number of units from that allowed in the crown lease (40) is a significant lease variation not in the public interest".

During public notification period there were 118 written representations received on the development application reconsideration.

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POD Projects challenged the authority's decision in the ACT Civil and Administrative Tribunal. A hearing date was slated for November 29 but an agreement has been reached.

Within 28 days of the decision, POD Projects is required to submit the final drawings and plans as reached in the agreement, but the approval of the development application took effect on November 29.

The planning authority believed there was a "reasonable prospect" of the development being approved if it went to a hearing, a spokesman said.

"The Planning and Land Authority believed that the revised development was consistent with the territory plan," he said.

"The Authority is satisfied that the external and internal impacts of the development have been further minimised to ensure the amenity of future residents and the surrounding area."

The managing director of POD Projects, Paul O'Donnell said he was "pleased" the tribunal had made the "correct" decision.

"We were very confident that this development would eventually be approved because of the quality of construction and the design is of high quality," he said.

"There has been a lot of adjustments based on community and authority feedback from the original concept through to what's approved."

The development was one of three proposed Molonglo Valley apartment complexes that faced pushback from local residents groups.

Other applications from 3 Property Group and Zapari Group were accused of "overdevelopment" after putting forward proposals for more than the indicative yield.