Consultants for the Milestone Hotel and Dubbo City Council representatives recently held a "positive meeting" about the point of contention.

As a result the council anticipated it may receive new information to support a further reduction of the developer contributions.

Council environmental services director Melissa Watkins provided the update at this week's meeting where the hotel expansion was on the agenda.

One week earlier, a council committee had recommended the developer pay a total of $319,150 for parking - a reduced rate of 30 per cent of the normal requirement - but some councillors argued the contribution was too high.

Their arguments had involved the hotel's listing on the state heritage register and its importance as a business in the central business district (CBD).

The development application (DA) that triggered the debate included plans to reduce car parking at the hotel from 12 spaces to five, which would not satisfy council requirements.

Under the recommendation carried with the support of six out of 11 councillors the proponent would be encouraged to lodge a modified DA seeking a change to the contribution set for car parking, in which it addressed heritage conservation provisions.

This week there was new information to report to the councillors.

Ms Watkins said a positive meeting had been held with the applicant's consultants, the result of which was they understood what the council required.

The consultants were proceeding to address the issues with a view to submitting more information to the council for its further consideration, she said.

The consultants were advised that if they provided the new information in the next week, a report could go to the council meeting in May, she said.

Cr John Walkom had called for a reduction in the developer contributions in the previous week but by Monday's meeting he had changed his mind.

He said he was happy to make a backflip and support the motion.

He was not the only one to change his view - this week all nine councillors present voted for the committee's recommendation.

It gave the DA approval subject to conditions, set the contributions for car parking at $319,150 and gave instructions for the developer to be encouraged to lodge a modified DA in the future.