The residential developer of a section of NSW Far South Coast bushland says his company is open to a land swap after concerns were raised about a potential loss of biodiversity.

RCL Group chief executive David Wightman said his company would consider discussing the future of the 10-hectare site at Mirador, north of Merimbula, with Bega Valley Shire Council.

"We've got an open mind," he said.

"We're prepared to have a frank discussion."

RCL Group said it acquired the land in 2011 and had already developed several stages of the housing project.

The original building application was lodged in 1989 but is still valid.

Mr Wightman said all 33 lots on the site had already been purchased, but the company would take the community's concerns on board.

"There could be an alternative that doesn't involve Mirador if there's other land the council would prefer to see developed," he said.

However, he said the idea had been shut down by the council.

"I'm not sure what they're worried about, presumably some sense that the villainous developer will swindle everyone," he said.

"Give it a shot, we're not that bad.

"If this site is too contentious, let's find an alternative."

Community interest

About 100 people gathered at the site on Friday to voice concerns about the development and listen to State Greens Member of the Legislative Council, Cate Faehrmann.

Ms Faehrmann said she had been visiting several communities on the South Coast facing similar development proposals.

"It's an area of high biodiversity value, home to many threatened species," she said.

"The environment minister could look at some of these parcels of land and add them to the national park estate."

Sam Tierney, who was the meeting, said concerned residents were surprised by the developer's land swap proposal.

"We would be delighted to have a proposal put on the table," he said.

"It seems like a very practical, sensible approach."

Ms Faehrmann said the idea of a land swap should be explored.

"If there is a block of land that has far less biodiversity value and ideally a cleared area, then of course that should be considered," she said.

"We hope council would approach the developer's idea with an open mind."

Bega Valley Shire Council has been contacted for comment.