The first answer that springs to mind is another question. Was the number of visitor parking spaces part of the Development Approval? If so, they need to go back to council and get approval first.
As for “giving” the space to the owner of an adjoining space, that is giving away common property. You should find out the average cost of a parking space rental in your area and the benefitting owner should be offered the space at that rate or just below, calculated proportionately.
Otherwise the OC could create motorbike and scooter parking which they could let to residents.
And finally, yes, it would require approval at a general meeting.
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