Formerly council land, the site at 7-9 McKeahnie Street, was sold at auction for $1.2 million in August 2013, but has been subject to a nine-month settlement period conditional upon the purchaser receiving development approval for a childcare facility at the site.

The existing car park and building will be demolished to make way for a new 84-place centre, making it the third largest childcare centre offering daily care in the region.

Farlow Investments developer John Stevens said building of the five-room childcare centre was expected to begin on June 1. "It's a six to seven-month build time," Mr Stevens said. "The centre will open in February 2015, if all goes well."

While the development application was approved with unanimous support of the council, Crestwood resident Katrina Willis presented her opposition to the approval of the plans at the council's meeting. She said the development failed to address traffic implications for the surrounding community.

"There is only one driveway for getting in and out," she said.

"What I think will happen is they [parents using the facility] will start parking on the street."

Ms Willis said traffic congestion would be compounded by the new childcare centre, a rise in medium density housing developments on surrounding blocks and no right-hand turn or traffic moderation into Uriarra Road.

As a resident of the area for more than 20 years, Ms Willis said the sale of council land meant a community asset had been lost.

But Councillor Judith Burfoot was one of several councillors who said the development was a "good outcome" and addressed the need for childcare services in the community.

After hearing Ms Willis's appeal, Cr Burfoot moved that a review of traffic in the area occur two to four months after the opening of the childcare centre - a motion passed with the unanimous support of the council.