A four-storey apartment complex over two suburban blocks is proposed for the small town of Gerringong.
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Plans for the complex in Blackwood Street next to the IGA have been lodged with Kiama Council.
They include 37 apartments, as well as four serviced apartments, with the ground floor featuring seven commercial spaces.
Two levels of basement parking also form part of the development, with spaces for residents, visitors and those using the commercial spaces - making a total of 109 spaces.
Of the private apartments, 30 will be three bedrooms, with six two-bedroom units and a one-bed studio apartment.
They include 37 apartments and four serviced apartments, with the ground floor featuring seven commercial spaces.
The proposal would create two buildings, one aligned with Blackwood Street and the other with Figtree Lane to the rear. A central courtyard will separate the two buildings.
The proposal would require the demolition of the home at 15 Blackwood Street, with the neighbouring block already vacant.
The development application lodged with council said a principle behind the development was to "rejuvenate a tired and underutilised site in the Gerringong town centre in a manner consistent with the council's planning objectives".
An accompanying traffic study claimed the proposed development would increase peak hour trips by 36 vehicle movements "without adverse impact on the surrounding road network".
Some residents in Gerringong are unhappy about the proposal and have voiced their disapproval on the Gerringong South Precinct Facebook page.
That increase in traffic movements concerned one group member.
"Thirty-seven apartments and seven shops on two family home blocks," he wrote.
"Traffic? The two trips per peak hour are estimated to become 37 - that's an 18-fold increase."
Steve Sweeney also had concerns about the impact on traffic.
"It's already a nightmare driving on Blackwood Street in the summertime as it is," Mr Sweeney said.
"All it takes is one person in a car waiting on someone taking forever to get out of an IGA parking space and traffic is blocked both ways."