A Sydney mayor says she has received death threats over her council's contentious proposal to redevelop the iconic Bondi Pavilion, which was last night approved despite a groundswell of community opposition.

Key points: Waverley Council votes to go ahead with $38m Bondi project

Waverley Council votes to go ahead with $38m Bondi project Mayor Sally Betts says she received threats

Mayor Sally Betts says she received threats Opponents criticise "commercialisation" of venue, loss of public facilities

Waverley Council voted 7-5 to proceed with the $38 million makeover of the Bondi Beach property, including a redeveloped grand entrance and atrium, a new theatre and space for restaurants and cafes.

About 100 residents packed the public gallery and some shouted insults as attempts to stop the proposal were voted down with the support of seven Liberal councillors.

Mayor Sally Betts later told the ABC that some of those present at the meeting had influenced others to make the threats against her.

"It happened very recently at a community meeting," she said.

"Some of the people here tonight were stirring people up and somebody threatened to kill me, and the police have been involved."

Waverley Mayor Sally Betts said she has spoken to police after receiving death threats. ( ABC News )

Cr Betts said she was not receiving personal protection.

"It was suggested strongly by police that those who made the threats keep away from me, and from various buildings in Waverley, and they are doing that, so police are keeping a vigilant eye," she said.

Under the proposal, the existing pavilion theatre would be moved downstairs to make way for a cafe or restaurant.

Opponents have criticised the plan to hand over the first floor area, and its valuable view, to commercial interests.

Actor Michael Caton, who has been vocally opposed to the plan, attended Tuesday night's meeting and said the plan was "guillotined through".

He criticised the mayor's threat to call in police if those in the public gallery did not stop recording the meeting on their phones, which she said was against council rules.

"It was slammed through on the numbers and was politics at its worst," Caton told the ABC.

"The people who are supposed to represent you are actually representing other interests."

What's planned for Bondi Pavilion: Restoration of Campbell Parade grand entrance

Restoration of Campbell Parade grand entrance A new theatre space with retractable seating for 200 people

A new theatre space with retractable seating for 200 people First floor commercial space, which could be used for a cafe or restaurant

First floor commercial space, which could be used for a cafe or restaurant Expanded exhibition and community areas

Expanded exhibition and community areas New amenities including toilets, showers and lockers

Councillor John Wakefield, who opposed the plan, said the next step would be to seek legal advice and financial advice.

"It's been given the nod based on a handful of very rough diagrams," he said.

"I think there's a simple belief by Cr Betts that cafes and restaurants are good and community activities are second rate.

"There's no business case for this, and I don't think this will work and Council will be left to carry the can on a very expensive proposal."

Fellow councillor Dominic Wy Kanak, who also opposed the plan, said the council had "underestimated the passion in the community about this proposal".

"People at last night's meeting even talked about picketing any eventual restaurants or developments that go into the pavilion at the expense of community activities," he said.

A council report said the Bondi Pavilion building had "exceptional heritage significance". ( Supplied )

More than 700 submissions were received by the council after it invited public comment in December.

A council report said many submissions raised concerns about the "commercialisation" of the site and the loss of community access and facilities, including music studios and pottery programs.

"Some of the concerns raised are based on misunderstandings, for example concerns that dance classes won't be accommodated in the new layout," the report said.

It said construction was likely to start in May or June next year, but the development application would require an exhibition period and further opportunity for public comment.

"It is expected that the application will be decided by the Joint Regional Planning Panel, on advice from the NSW Heritage Council," the report said.

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