Kiama Council has taken a firm stand against a proposed high-rise development, formally rejecting a recommendation that would see a 14-storey tower built on Akuna Street. The council is now calling on the NSW Planning Minister to refuse the plan, setting the stage for a significant state-level decision.
Council Defies Housing Authority Recommendation
At a council meeting held on December 16, 2025, Kiama Councillors passed a mayoral minute that outright rejected a key recommendation from the NSW Housing Delivery Authority (HDA). The HDA had advised that the Planning Minister, Paul Scully, should declare the Level 33 developer's plan for Akuna Street a State Significant Development.
This declaration would fast-track the project and remove it from the council's usual planning controls. The proposed 14-storey structure represents a dramatic shift, being twice the height of the original development proposal that Level 33 had previously lodged with the council.
Community Concerns and Call for Collaboration
Mayor Cameron McDonald voiced strong alignment with local residents, stating he shared the community's deep concern over the scale of the proposed building. "As the previous DA has now been withdrawn, the minister is now in a position to declare the proposal as a state significant development," Mayor McDonald said. He emphasised that the ultimate decision now rests with the state government, noting, "This is a matter for the NSW government and the minister, not the council."
The council's mayoral minute also urged Level 33 to "proactively work with the council and the community" to create a new design for the contentious site. This call for collaboration was echoed by Councillor Matt Brown, who suggested the developer engage with a previous proponent for the site, Traders in Purple.
Councillor Brown highlighted that Traders in Purple had invested over $2 million and conducted extensive community consultation on a design that he believed garnered more local sympathy. "I think that design ticked many boxes that the community would be more sympathetic to," he remarked.
What Happens Next?
The ball is now firmly in the court of NSW Minister for Planning and Public Spaces, Paul Scully. He must decide whether to accept the HDA's recommendation to declare the project state significant, which would override the council's objection and allow the 14-storey proposal to proceed through a different planning pathway.
The council's decisive rejection signals a significant rift between local planning priorities and state-level housing delivery goals. The outcome will set a major precedent for future development in Kiama and could influence how similar conflicts between local councils and state authorities are resolved across New South Wales.
All eyes are now on Minister Scully's office as the community awaits a decision that will permanently alter the streetscape and character of Akuna Street.
