In a judgment delivered on Thursday the court’s Justice Tim Moore found that council’s public notification of the development consent was “defective”.

This was because public notices omitted a “significant and material element” – the plan to demolish the existing amenities block and the council’s works administration facility.

But it is not yet clear whether the development consent process will have to be done again, with the court to consider what should happens now next week.

Residents group Protect Our Parks Incorporated (POPI) brought the case against the council, arguing the proposal was prohibited in a public recreation area, and that the plan was not compatible with the Stuart Park plan of management.

Judge Tim Moore rejected these grounds but upheld the argument that council notification was invalid.

The company’s application for a new building at the park’s edge was knocked back by the Independent Hearing and Assessment Panel (IHAP) late in 2014 as the location was inappropriate. In April council voted 8-4 to negotiate exclusively with Skydive the Beach on lease terms for a different spot in Stuart Park. Council consent to the building in March. 

A council spokesman emphasised two of the three grounds were dismissed, and said there was not yet a ruling on whether the development consent was now invalid.

“The court is yet to determine the final outcome of this matter,” he said.

Councillor Greg Petty, who had questioned the consent, said more scrutiny was needed.

“Certainly any administrator must investigate these planning processes and bring the requisite intense scrutiny that Wollongong residents deserve and expect, especially after similar previous controversies (as to) why, in this instance, the community, IHAP and councillors weren't presented the full picture,” he said.

Skydive the Beach director Anthony Boucault was contacted for comment.