The paper estate is located in Worrowing Heights near the Erowal Bay area.

Council’s planning director Ernie Royston said council did not want the land re-zoned for its own benefit, but had a moral obligation to assist landowners.

“One way or another, there needs to be an answer on where people stand,” he said.

Under the Local Government Act, council is required to levy rates on all privately owned property.

Even though they are not permitted to build, Heritage Estate landowners still pay rates.

All money collected from the rates goes towards council’s general fund, which is used to fund projects, works and services across Shoalhaven.

Most landowners bought their properties between 1985 and 1992, believing the land would be rezoned.

The proposed rezoning would potentially enable the construction of up to 730 dwellings and would require removal of native vegetation, road construction, maintenance of bushfire asset protection zones, and provision of services and infrastructure including sewer, water and electricity.

The Heritage Estate proposal requires assessment by Public Environment Report (PER) and approval under the Environment Protection and Biodiversity Conservation by the Minister for the Environment, Heritage and the Arts.

Mr Royston said the project would not advance any further without support from the Federal Government.

Several groups have indicated they would be lodging submissions against the rezoning for environmental reasons.

In 1999 the Heritage Estate proposal was the subject of a NSW Commission of Inquiry that investigated the potential to develop the site.

The report recommended that land with important fauna habitat and wildlife corridor values should be protected and that a maximum of 730 residential lots could be considered for development.

Submissions on the matter are being taken and close on July 21.

The draft environmental report is on display at council’s website, administrative centres in Nowra and Ulladulla and at the Bay and Basin Leisure Centre.