Sydney-based developer Level 33 has moved to reassure the local community that its plans for a high-rise complex on Akuna Street will “enhance the town centre” rather than detract from Kiama’s unique charm.

Managing director Eddy Haddad told The Bugle that they were “aware of the concerns and are taking them seriously” following a backlash to the proposed $66 million development.

Level 33 recently withdrew its legal action against Kiama Council and has engaged with the Housing Delivery Authority to complete the project.

The HDA could allow the developer to go beyond the seven-storey limit to the 10-14 range for the complex which could house two supermarkets.

When asked why the Land and Environment Court case, which was due to be heard this week, had been withdrawn, Haddad said: “The HDA has accepted the site into its program and has gone out to tender with a panel of architects.

“At this stage, we could not gain further traction with Council on progressing the approval without the matter proceeding to a full hearing in Court, which we wanted to avoid.”

Haddad would not say how many storeys Level 33 wants its development to be but added: “The project has now gone out to the HDA’s architectural panel for a redesign, so the final height will be determined through that process.

“This will ultimately be determined by the State Government Architect and the Design Review Panel. Heights shown to date are indicative only and subject to further assessment and planning.”

It is understood that the HDA will make a recommendation to Planning Minister Paul Scully who can then declare the project a State Significant Development, which means it would not need to conform to Council’s height limits.

Local residents and business owners are concerned Kiama does not have the infrastructure in place to cope with a rapid increase in developments such as this one, plus two other multi-storey proposals for Akuna Street and the Council-owned Shoalhaven Street Precinct which could result in 450 homes being built in an eight-storey development opposite Kiama Bowls Club.

“We intend to deliver a landmark development for Kiama that will enhance the town centre, including significant retail activation and additional retail and resident car parking,” Haddad added.

“The (Level 33) site is proposed to include over 200 parking spaces for both residents and the retail precinct, which will support the town centre.”

Haddad said they intended to “work collaboratively with Council throughout the process”.

“We aim to commence construction as soon as possible following approvals.”

Kiama MP Katelin McInerney has described the potential 14-storey development as “completely inappropriate” for the town.

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

Cr McDonald has encouraged disgruntled local residents to also write to the Minister to express their opposition to high-rise development dwarfing the town centre.

In his Mayoral Minute for next Tuesday’s Council meeting, he has reiterated his opposition to the Akuna Street development.

“I do not support 14-storey buildings anywhere in the town centre of Kiama.

"The community can rest assured we are advocating on its behalf for the Minister to refuse the application and ensure that the heights are more appropriate for a community of our size and scale.”

Cr McDonald also pointed out that he was “aware that concerns have recently been published around the integrity and governance structures of the HDA”.

“The NSW Leader of the Opposition has recently called for an independent review of all HDA recommendations as it has been revealed that an unauthorised AI tool was used to collate information before the HDA.

“The integrity of any planning process must be maintained.

“Council welcomes the news that the NSW Audit Office is undertaking a review of the governance arrangements for the HDA.”

The Akuna Street site was sold by Council to Level 33 in late 2022 for $28 million.

The dilapidated area of the old Kiama Independent newspaper headquarters has been decimated by vandals and squatters with abandoned cars, smashed glass and graffiti throughout the site.

On Tuesday morning, Level 33 closed down the car park due to safety concerns but reopened access a few hours later and will allow motorists to park there for another month before it gets shut down permanently.