Kiama MP Katelin McInerney says it’s “completely inappropriate” for a developer to want to build a 14-storey development in the town centre.

McInerney told The Bugle that she has written to NSW Planning Minister Paul Scully to voice her opposition to the plan by Level 33 to request permission for double the Kiama Council-approved height limits.

Level 33 is set to request the Housing Delivery Authority to allow a much higher development on the corner of Akuna and Shoalhaven Streets.

The developer has dropped its legal action against Kiama Council in the Land and Environment Court and is expected to lobby Housing Minister Paul Scully and the Housing Delivery Authority to have the project declared a State Significant Development, which would effectively sideline Council from limiting its height to the already approved level of seven storeys.

Kiama Council is aiming to increase the supply of homes in the LGA via its Housing Strategy while the NSW Government is looking to provide solutions to the housing crisis which has gripped the state.

But McInerney said the Akuna St HDA proposal would not suit Kiama.

“I don't wanna see, and neither, quite frankly, does anybody that I speak to want to see Kiama move to a big high-rise here in the main street,” she told The Bugle.

“I share those concerns around the proposal. I've written to the Minister for Planning and I've said it's completely inappropriate.

“I can't see how they would achieve it given how much parking they would have to dig into bluestone.

“It would be very difficult to make something like that stack up. I've got huge concerns about that.”

McInerney has been talking to affected local residents and community groups about the Shoalhaven Street Precinct where a 450-home development could proceed after the two-hectare site is rezoned.

“The State Government has been brought in to do a rezoning and I can completely understand the cynicism from people on this and that Council have expressed they want to do things differently,” she said.

“Both State Government and Council being up front with the community going out to community consultation at the rezoning proposal stage to talk about what this two-hectare site could possibly deliver.

“People have put so much love and work into their homes near the site.

“Council have communicated the intent is to do this differently because we have an opportunity to do something in town that meets the needs and the community expectations, unlike when a block of land is sold to a developer and it goes out of their control.

“I can understand the concerns of those people in the vicinity. I don’t want something that reaches to the sky here either. We have these beautiful heritage houses nearby that are such a huge part of Kiama’s character.

“It’s an exciting opportunity which needs to be in line with community expectations. If we don’t do it, we will lose people out of our community that we need.”

McInerney said there was a need to provide options for older people to move out larger family-sized homes.

She noted the role of the Kiama Council Local Housing Strategy and benefit of open community consultation.

“It went out to the community twice. One message that's really clear was we don't want Kiama sprawling out over the green rolling hills,” she said.

“The NSW Labor Government has a very clear mission - we need to build housing. We need to build it much quicker. What we need for not just our ageing demographic, but the workforce to provide for that.

“The Strategy went out to the community twice. One message that was very clear was the community don't want Kiama sprawling out over the green rolling hills,” she said.

“The NSW Government has a very clear mission – people need housing and we need to get more keys in doors sooner. What we need more housing not for not just our ageing demographic, but the workforce who provide the services to support them.

“The Strategy data details quite scary facts. The median age of our LGA is 48, the state average is 40. We've got around 36% of the population who are 60 years and older. This part of our community needs options to downsize into.”

She added that most of the dwellings in the LGA are three and four-bedroom houses. “We have 14% that are two-bedroom and 3% that are one.”

Kiama Council CEO Jane Stroud reiterated that the Shoalhaven Street Precinct at this stage was “simply asking whether the site is better used as residential rather than industrial”.

“No decisions have been made on height, density or yield,” she said.

“The images and messaging the Department of Planning, Housing and Infrastructure released have caused far too much conjecture and reaction, and wrongly made people think these designs are a fait accompli. They are not.

“They are indicative only. The site will still need a Development Control Plan and Development Application.

“Our community will still get a say in those processes and we are looking forward to engaging with them on that.

“Every town in NSW has housing demand and we do too.

“Of course any DCP and DA process will make sure that issues like water, stormwater and traffic are addressed but that is down the track. And not what is being asked right now which is moving from industrial to residential.

“This site is in the main frame of town, and ticks all the state government boxes for delivering housing in the low to mid rise regulations and policy.

“Housing in the missing middle of town is a sensible choice to provide much-needed homes, without sprawl or creep into the hills. It just makes sense.”