Defence Housing Australia has proposed to build a new housing estate at the site of the former Belconnen Naval Transmitting Station.
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But residents of Lawson have expressed concerns about a lack of shared community spaces, parking and traffic management.
As well, residents want appropriate planning considerations to take into account the development's impact on endangered species that live on the site.
DHA plans to build on about 40 per cent of the 144-hectare site, dubbed Lawson North. There would be about 570 houses across two stages, with half the housing used for Defence families and the rest to be made available to the public.
Low and medium-density housing would be on the site. The first stage would have 170 dwellings and the second stage would have 400 dwellings.
The former transmission site was established in 1939 and was used by the Australian Navy to transmit radio signals to ships in the Pacific and Indian Oceans.
The station was integral to communications in World War II, the Korean War and the Vietnam War. It was decommissioned in 2005 and has been vacant for most of that time.
DHA has planned to preserve the transmitting station and is looking into options to repurpose other heritage buildings on the site.
"We aim to give the local community access to the cultural heritage of the site by restoring and repurposing the existing buildings which have to date been inaccessible," a DHA spokeswoman said.
A local residents group called Say Hello Lawson has written an open letter to DHA with a list of concerns about the proposed development of the housing estate.
Alex Hausen, a spokesman from Say Hello Lawson, said one of the prime concerns was around its environmental impact.
"Lawson residents enjoy a vibrant community characterised by large oak trees, grasslands and endangered species. It is pleasing to hear the developer is committed to ensuring the continued liveability of the suburb by preserving those key flora and fauna elements," he said.
"However, we have concerns the developer has not included the appropriate planning considerations to ensure the survival of endangered species including the golden sun moth."
The group has recommended any development on the site should avoid land occupied by the endangered species and any development that adjoins the land should have a 30-metre buffer zone.
The DHA spokeswoman said there had been investigations into the impact on the environment.
"A significant portion of the site will be preserved for conservation. We have conducted investigations into flora and fauna, heritage and contamination to assess potential environmental impacts," she said.
"Some of the previously restricted areas may become accessible as public open spaces. Further connectivity will also be provided through a series of bike and walkways."
This week DHA conducted community consultations about the proposed development.
As well as environmental concerns, the residents group also expressed concerns about a lack of shared community spaces but Mr Hausen said he was pleased at plans for shops and repurposed buildings.
"It was pleasing to hear that the development plans to build an indoor sports centre, childcare centre, oval and space for shops and community markets," he said.
"We are pleased the developer intends to restore the historical Defence buildings and convert them into multi-use community spaces. Many residents would love a yoga hall."