8 January 2026

Scale of Akuna Street development now out of Kiama Council's control after state declaration

| By Keeli Dyson
Start the conversation
Artist's impression of proposed building.

The original 2024 artist’s impression of the multistorey, mixed-use development proposed for Akuna Street. Photo: Kiama Council.

Kiama Council will have little control over the scale of a development planned for Akuna Street, with the project now declared ‘State Significant’ and decisions to be determined by the NSW Government, but the community will have another chance to express any concerns as part of the process.

A controversial multistorey, mixed-use development in the heart of Kiama could climb beyond the six-storey limit called for by council with the Akuna Street site now a State Significant Development (SSD).

The project by Level 33 could bring dozens of new residential units to the area but the scale and impact of the development continues to be a point of contention with residents and council.

“Housing delivery matters, but so does getting the right outcome for Kiama,” Kiama Mayor Cameron McDonald said.

“Development in the heart of our town must respect our local character, amenity, infrastructure capacity and the plans our community has helped shape.”

The project had undergone multiple community consultations but an initial 14-storey proposal was slammed by council, resulting initially in a case being brought by the developer to the Local Environment Court (LEC).

But before council could defend its planning controls which found the development too high and bulky, Level 33 withdrew the case.

The developer had submitted an expression of interest to the Housing Delivery Authority (HDA) to determine the proposal State Significant in June and although the HDA recommended the minister declare it an SSD, such declaration could not be made while the case was in court.

READ ALSO Kiama one step closer to 80 new homes

Councillors voted to call on Planning Minister Paul Scully to refuse the HDA recommendation at a meeting mid-December but only days later were informed of the decision to progress the SSD.

“Like many in our community will be, I’m disappointed by this decision,” Mayor McDonald said.

“Council has recently adopted planning controls for the Kiama town centre that reflect extensive community consultation and set a six-storey height limit for this site.

“The state’s decision to advance an eight-storey proposal is not consistent with those locally adopted controls and community expectations.”

The NSW Planning website explains that all SSD development applications are put on exhibition for at least 28 days unless otherwise specified by the department’s Community Participation Plan.

Recent changes to the Community Participation Plan designed to remove barriers for housing development means a minimum 14-day exhibition period now applies to relevant residential state significant development applications.

“With the project now in the state’s SSD pathway, council’s role is largely to make submissions and represent the community’s concerns through the formal process and we will do that clearly and strongly,” Mayor McDonald said.

“I want our community to know this: council will stand with you at the appropriate time and will continue to advocate for an outcome that is consistent with Kiama’s planned town centre future.”

As part of the process the Planning Department is required to take robust measures to consult the community with Kiama Council also committed to providing information to the community about when and how submissions can be made once the exhibition period opens.

Free, trusted, local news, direct to your inbox

Keep up-to-date with what's happening in Wollongong and the Illawarra by signing up for our free daily newsletter, delivered direct to your inbox.
Loading
By submitting your email address you are agreeing to Region Group's terms and conditions and privacy policy.

Start the conversation

Daily Digest

Want the best Illawarra news delivered daily? Every day we package the most popular Illawarra stories and send them straight to your inbox. Sign-up now for trusted local news that will never be behind a paywall.

By submitting your email address you are agreeing to Region Group's terms and conditions and privacy policy.