Paul Suttor
09 November 2025, 7:00 AM
An aerial view of the Shoalhaven Street Precinct. Photo: Kiama CouncilThe Akuna Street developments are causing concern at Kiama Council and in the community but Mayor Cameron McDonald is confident that the proposal for the Council depot site opposite the Bowling Club known as the Shoalhaven Street Precinct will be a major plus for the town.
A 450-home residential community is in the pipeline for the Council depot site and acquired land bordered by Shoalhaven, Barney, Belvedere and Noorinan streets.
NSW Minister for Planning and Public Spaces Paul Scully and Kiama Council announced the rezoning proposal on Wednesday for infill housing on the two-hectare former gasworks site.
Council owns the property and under the rezoning proposal, there will be:
“The Shoalhaven Street proposal is very exciting,” Cr McDonald told The Bugle.
“It's part of our Local Housing Strategy. And Council’s Planning Team have been working with the State Government for over almost 12 months now to rezone the site from industrial to residential.”
Council’s director of strategies and communities Ed Paterson said this means all the planning costs would be absorbed by the State Government at the community’s benefit.
“Doing a planning proposal like this would normally take Council around two years, so to see my team work strategically with the State Government to bring this together in a matter of months is fantastic,” he said.
“The Shoalhaven Street Precinct is one of our ‘catalyst sites’ that’s talked about in the Housing Strategy. It is a perfect location for infill development that fits with our town character.”
Cr McDonald added: “We also control the site as we move forward - it doesn't become a State Government venture, its development remains in the ownership of Council and we’re thrilled to be working with the NSW Government to ensure there’s ongoing discussion with the community about what that the site will look like.”
Council CEO Jane Stroud said the project would also deliver on affordable housing in perpetuity.
“We know that the Illawarra Housing Trust and others have been advocating for our LGA to have more affordable housing for a long time, so it’s heartening to see progress being made on this important community need,” she said.
“It’s a strategic block to lock in a minimum 10% affordable housing products for our community. And if you’re talking 450 dwellings, 45 affordable housing options is a really impressive number for this LGA.
“This Council made one a brave financial moves to invest in the adjoining parcel of land and embark on the planning proposal for the site’s rezoning.
“The ROI projections for the site have trebled anything that we expected – which shows Council invested wisely and made the right decision.”
Cr McDonald said: “Council has owned the site for 100 years and the depot has been operating there for decades. We all know the depot is s is no longer fit for
purpose and needs a more appropriate location.
“A Works Depot in the middle of the urban frame is not a great long-term solution for a growing community, but housing that includes affordable dwellings is.”
Scully described the proposal as “an exciting opportunity to unlock up to 450 homes close to jobs, the beach, shops and transport, helping boost housing supply to give key workers and families a choice in where they live”.
Kiama MP Katelin McInerney added: "rezonings like this are crucial to provide diverse housing options in our community.
“We are fortunate to be living in one of the most beautiful parts of regional NSW but, even here, finding a home, particularly one that suits their needs and is well located, is a barrier for many.”
The NSW Government is seeking feedback on the draft proposal, which is on public exhibition until 3 December before it is finalised midway through next year.
For more information or to make a submission, visit https://pp.planningportal.nsw.gov.au/ppr/under-exhibition/kiama-depot, phone 1300 305 695, email [email protected] or attend a community drop-in session, which will be held
NEWS