They also question the transparency of council’s decision to approve a boundary adjustment in less than six weeks.
Cr Munro has had several development applications (DA) approved for three blocks in Moulder Street in the past four years.
Most recently staff approved the demolition of outbuildings, a new garage and a boundary adjustment of 49 Moulder Street, under delegated authority in July.
Moulder Street resident Dan Fock said the approval makes way for a driveway to open up the land behind 51 Moulder for development and was recently told by a real estate agent six town houses were for sale off the plan.
Cr Munro said he planned to develop the land to support his business, but won’t know how many townhouses will fit until he meets with his planner and council staff to lodge a DA.
He said he was not given any preferential treatment as a councillor and took “a gamble on council’s determination” when he purchased 49 Moulder at “great expense” to access the block behind 51 Moulder.
“Because of our position if any councillor thinks they can get away with something that’s not above board, the public will judge them harshly.”
Mr Fock has letterbox dropped households in the streets backing on to the land asking them to join him and take action if they have concerns about the town houses.
So far about 20 residents have contacted him and not one knew about the development.
“They’re up in arms,” he said.
“One poor guy from Clinton Street has lived there 70 years.”
Mr Fock questioned why neighbours did not have to be advised of Cr Munro’s boundary adjustments and why the most recent DA took less than six weeks to approve compared to similar developments.
He is seeking legal advice to see how the approvals can be challenged.
“We’re all going to fight to the bitter end,” he said.
Mr Fock said the townhouses would be out of character for the conservation area and residents will be able to see into his bedroom and bathroom.
But Cr Munro said there were many infill developments in the area, and if built behind existing homes the impact on the streetscape was reduced.
Council spokesman Allan Reeder said DAs for boundary adjustments do not have to be advertised and DAs submitted by councillors are assessed in the same way as any other community member.