The design was shortlisted in the concept design category, and in the NSW Regions and ACT section of the Urban Development Institute of Australia (UDIA) awards for excellence.

Lake Macquarie City Council had worked closely with architectural company Group GSA in developing the concept design.

"Developing a town square, with library and community facilities has been identified as integral to creating a lively town hub in the Morisset Town Centre Area Plan," Lake Macquarie City Council's cultural services manager, Narelle Reichert, said.

Council was "extremely proud" that the collaboration had been recognised, she said.

The concept design was part of a council push to find a balance between the town's history and the future.

"Our community consultations have shown us that local residents are passionate about their town and council is working hard to provide facilities that reflect both the heritage and future of the area," Ms Reichert said.

Council formed a project group with community members to appoint a heritage consultant to carry out a heritage study of the Morisset Memorial Hall, which is located on the site.

"The heritage study will document the past and current social significance of the existing hall and provide options for future development of the building, including its relationship with any new community facility."

Meanwhile, the Morisset project faces some tough competition, particularly for the concept design award.

Other finalists include the Sydney by Crown, a luxury high-rise waterfront apartment complex.