Kiama’s town centre could be dwarfed by three multi-storey developments on Akuna Street with one proposal potentially ending up as high as 14 storeys.

Due to changes in the NSW Government’s planning processes, Kiama Council has effectively been sidelined by the Housing Delivery Authority when it comes to putting limits on height restrictions in the local government area.

Sydney-based developer Level 33 has submitted an Expression of Interest to the HDA for a 32.5 metre development at the eastern end of Akuna Street which would replace the eyesore that is the derelict Kiama Independent site and car park on the corner of Shoalhaven Street.

Kiama Mayor Cameron McDonald said Council had settled on seven storeys as the limit for the Level 33 development but that height could be doubled if the HDA and Planning Minister Paul Scully give it the green light.

Council and Level 33 are engaged in a long-running legal battle which will resume next month in the Land and Environment Court.

Irrespective of the outcome in the courtroom, the Minister can still issue a declaration to make the proposal a State Significant Development to go up to 14 storeys.

There is also an application for a six-storey residential and commercial building from developer Charlie Daoud’s Traders In Purple for 66 Collins St, on the corner of Akuna St, which is also double the height that Council had approved.

A third project from PSEC Project Services on the south side of Akuna St is currently before Council, which is assessing that through its normal processes - that project is for a three-storey development with 30 units, including commercial premises on the groundfloor.

Cr McDonald said Council objects to being “completely removed from any decision-making process” with regard to the pathway for developers involving the HDA and NSW Planning Minister.

The old vandalised Kiama Independent building. Photo: The Bugle

“Council is relegated to the comments section with members of the community during the public 14-day exhibition process down the track when they've done all the work about what the development might look like.

“We don't have a decision-making role, and Council and the community aren't genuinely consulted with regards to that process.

“So that's the real issue, and this is symptomatic of that planning pathway, and we're dealing with that as a local community with regards to 14 storeys.”

There are fears among local residents that Kiama will be turned into a mini version of the Gold Coast if it is inundated with high-rise developments.

Council CEO Jane Stroud said there were 156 high-rise buildings at the iconic Queensland holiday destination and over 100 of them are over 36 storeys.

“Fourteen storeys, three storeys, six storeys is not 80 storeys … so no, this is not the next Gold Coast. A little bit of realism goes a long way in community discussion,” she said.

“But the look and feel of Akuna Street, basically from opposite the Arch and up the hill, and down the main street, is going to profoundly change.

“Local governments play a really strong and unique role in planning for local communities. It's how we get local outcomes, and it is a tremendous shame when local voices and local government are removed from that process.”

Cr McDonald said when you look at proportionality, the impact of the proposed development would be monumental.

“You can understand where the concern and the angst in the community is coming from - 14 storeys is a significant change to the character of the main street and grossly in addition to anything that we've got as a proposal on that site currently,” he said.

“I would prefer to not think that it's a fait accompli.

"Even though our ability to comment on the actual proposal is limited at this stage, that won't limit us from advocating and from putting our best foot forward for the community.”

The artist's impression for the original Level 33 development.

Kiama Council director of strategies and communities Ed Paterson said they were confident they would have the infrastructure to cope with the approved proposals that go no higher than seven storeys but it would a real concern if a development double that size were to be approved.

Kiama MP Katelin McInerney called on Level 33 to listen to the community over their fears about over-development.

“I share the concerns of the community with the proposal,” she said.

An artist's impression of the proposal for the south side of Akuna Street.

“A declaration for this project to be assessed as State Significant Development has not been made, as there is an existing proposal for this site currently before the NSW Land and Environment Court.

“The proposal would need to be withdrawn from the LEC process prior to a declaration being made.

“Level 33 must engage with the community so that concerns can be appropriately raised and addressed and that any future development of the site takes into account community and Council feedback.

“The Minns Labor Government is committed to addressing the housing challenges in NSW and is working with Kiama Council on the [separate] proposal for the Kiama Depot to deliver well-designed, well-located and diverse new homes for our community,” she added in reference to the joint project with Council for the two-hectare site further south on Shoalhaven St, opposite the Bowling Club.

Kiama Matters Inc, which represents more than 500 local residents, is concerned about the prospect of high-rise developments in the town centre creating a range of problems.

Committee members John Greer and Dr Lenore Pennington told The Bugle that Kiama Matters had invited McInerney to their next meeting on 26 November at 7pm at the Kiama Anglican Church to discuss their fears over the prospect of over-development.

Dr Pennington said many local residents were “appalled and horrified” by the possibility of multi-storey buildings at Akuna Street and Shoalhaven Street.

They are worried about the impact on traffic, parking, public transport and other key areas of infrastructure like water and sewerage.

“The main concern is parking. We have minimal public transport, there’s no taxis anymore and limited Ubers,” she said.

“Do we have the infrastructure to cope with more high-rise buildings?

“And how many people are going to use this new housing to live in and how many are going to use it as a weekender or an airbnb. It might bring more tourists in but reduce the housing supply for locals.”

Greer said Kiama Matters was keen to inform local residents about what is happening with development in the town “to raise questions and point them in the right direction” so they are not blindsided by proposals after they have been approved.