Locals are railing against the 150-apartment project, saying it doesn’t fit the area’s character.
The current system was designed in the 1980s for smaller onshore oil projects.
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Residents, heritage enthusiasts and Willoughby City Council are opposed to the $106 million complex.
“The biggest hurdle is actually having someone willing to commit their time and effort”.
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The $138 million proposal would see an eight-storey complex on Grosvenor Street.
Local conservationists say an aquatic reserve is needed to protect fish, kelp and seagrass meadows.
A new precinct would include a school and housing.