Hundreds more cars would travel through the Kiama CBD in the evening peak if a proposed $66 million multi-storey residential and retail complex was built.
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But an economic impact study said it would create more than 100 jobs, boost existing businesses and possibly even reduce supermarket prices.
Developer Level 33 has lodged plans for the development in Akuna Street - a block behind the main drag of Terralong Street - with Kiama Municipal Council.
The proposed development was made possible by the council's recent easing of height restrictions in the Kiama CBD.
Due to the cost of the proposal, it will be the Southern Regional Planning Panel that will make the final decision, and not the council.
The proposal includes a two-level shopping centre, with two supermarkets and 24 retail spaces, and up to six levels of apartments on top of that. Overall there would be 82 apartments in the development.
There will be three levels of basement parking offering 344 spaces.
A traffic study submitted as part of the application predicted a sizeable increase in vehicle movements in the evening peak.
The report suggested the development would contribute an extra 490 trips - 253 in and 237 out - during the evening rush.
The morning peak would be milder by comparison, with only an extra 136 car movements.
The report claimed the existing streets would be able to handle that increase.
"The development proposal will not result in any unacceptable traffic implications, and all nearby critical intersections are expected to continue to operate satisfactorily, and as such, there are no road improvements or intersection upgrades required," the study claimed.
An economic impact assessment was also lodged with the application, which estimated the retail component would provide around 170 ongoing jobs, with those workers' income boosting the Kiama economy by $9.6 million a year.
"The development provides a high-density mixed-use development comprising residential apartments in the town centre that would create increased pedestrian traffic having the effect of further activating the town centre," the study stated.
"This precinct activation would have the benefits of increasing security and increasing trade for retailers in the town centre."
With only a Woolworths supermarket in town, the economic study suggested two more supermarkets could lead to reductions in prices at the checkout.
The development application is on public exhibition until March 15.
Glen Humphries
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
