UPDATED

The saga over the Level 33 development at Akuna Street has taken a couple of twists on Tuesday morning with the car park at the site closed for a few hours before getting a stay of execution.

Makeshift barricades were placed on the site for the proposed multi-storey development by Level 33 over safety concerns due to the many potholes.

There are around 75 car parking spaces which are usually taken up by local residents and workers when available.

Notes were left by Level 33 under the windscreen wipers of cars to inform them that their vehicles need to be removed as the area was about to be fenced off permanently.

But in a sudden backflip, Level 33 later in the morning issued a statement to say that "following constructive discussions with Council’s CEO, Jane Stroud, Level 33 has successfully secured a temporary extension of insurance coverage until 18 January 2026.

"As a result, the car park will remain open to the public until this date."

The developer added that "for over 2½ years, Level 33 has voluntarily kept the Akuna Street car park open to the public entirely out of goodwill.

"Although the land is privately owned and there is no obligation for it to be made available for public use, we have maintained access for the benefit of local residents, businesses, and visitors.

"In recent months, Council issued notifications and compliance requirements relating to the condition of the site.

"These matters, combined with ongoing vandalism, unauthorised entry into the derelict building on 55 Shoalhaven Street, and increasing public safety risks, triggered a review by our insurer.

"We were formally advised that continued public access could no longer be insured under our policy.

"After 18 January 2026, insurance coverage will cease unless the site is fully secured.

"Therefore, Level 33 will be required to fence off the premises and will commence the process of lodging a Complying Development Certificate (CDC) for site closure and demolition works to address safety concerns.

"We acknowledge that the community has valued the convenience of this carpark, and we understand the desire for it to remain open.

"However, the forthcoming closure is driven by mandatory compliance obligations and insurance requirements that are beyond our control.

"Our responsibility to ensure public safety must come first. Level 33 has always acted in good faith and with a commitment to supporting the Kiama community.

"We are proud to have provided free public access to this land for several years, and we remain committed to working cooperatively with Council as we transition toward securing the site and undertaking the required works."

In the note that had been left on the remaining cars, the motorists were informed that “given the deterioration of the surface and considering our future development plans, we intend to fence off the premises in the coming days to ensure safety, manage liability and protect the site".

The original decision would have meant parking would have been even harder for motorists in the Kiama town centre during the busy fortnight in the lead-up to Christmas.

Squatters have been using the old Kiama Independent building while vandals have left a trail of damage with broken glass and abandoned cars making the area an eyesore for the town centre.

Level 33 has cleaned up some of the debris in the area recently.

There has been widespread concern in the local community regarding the Level 33 development with fears that the Housing Delivery Authority will allow the multi-storey complex to exceed the Council mandated seven-storey height limit.

Kiama Council has voiced its disapproval of the potential for the development to extend way beyond seven storeys while Kiama MP Katelin McInerney told The Bugle that a possible 14-storey option was "completely inappropriate".

McInerney and Kiama Mayor Cameron McDonald have written to NSW Planning Minister Paul Scully to voice their opposition to the project going above seven storeys.

Level 33 has dropped its legal action against Kiama Council in the Land and Environment Court.

“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," McInerney said.

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