Olde Lorenzen,a spokesman for the community group,said the apartment development was"uniquely out of place".
"For Meriton to come in so cunningly with a monstrous and soulless proposal with building heights four to six times as high and much greater density is appalling,"he said.
Mr Lorenzen said there was a sentiment in the community that"Harry always gets his way"and"always wins at state level"- a viewed shared by Michael Daley,the Labor member for Maroubra and former opposition leader.
"Many citizens have said'What Harry wants,Harry gets'under this Liberal government,"Mr Daley said,pointing toMeriton's Pagewood Green development,next to Westfield Eastgardens,which he said was"just over-the-top".
Mr Daley said Meriton's Little Bay proposal was an"outrage"and"just warped".
"Council I'm sure will knock it back and they'll just run around behind the council and do a spot rezoning with the state government,"he said."That should not be allowed to happen."
Meriton's plans are currently before the council and have not been referred to the Planning Department.
Any proposal to increase building heights through a rezoning of land would be referred to the local planning panel for advice,and must align with the Eastern City District Plan.
A council spokesman said the rezoning proposal had been instigated by Meriton:"Council is required to assess any planning proposal that we receive and consider if it has strategic merit before it can proceed to public exhibition and community consultation."
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The council has approved 450 dwellings for Little Bay,half of which have already been constructed.
Meritonpurchased the Little Bay Cove project for $245 million in 2017. The land had approval for 391 apartments and townhouses.
The Meriton spokeswoman said more public transport,open space and public services were planned as part of the development as well as 76 dwellings set aside as affordable housing.
"If approved,the proposal will generate close to 8,000 jobs,in excess of $750 million in government taxes and charges plus the housing the government needs,"she said.
Corrections Minister Anthony Roberts said the future of Long Bay jail had not been decided."Any possible redevelopment of the site would not begin until additional correctional capacity had been procured in Sydney,"he said.