More Kiama development could follow $66m Kiama complex

Detailed plans have been lodged for the retail-residential project in Akuna Street, one block back from the main drag of Terralong Street.

An economic impact assessment was among the papers lodged, which suggested if this proposal is approved by the Southern Regional Planning Panel, it could inspire further development in the city.

"Where a significant property investment decision has been made it is generally viewed as a strong positive commitment for the local area," the assessment said.

"Such an investment can in turn stimulate and attract further investment. The direct investment in the subject site would raise the profile of Kiama town centre and support a wide range of economic multipliers which would in turn support investment in associated industries."

The economic assessment also noted the benefits the amount of money the roughly 200 residents in the new complex would spend in shops in the city.

"These residents will spend around $17,500 on average per annum on retail goods and services," the statement said.

"This totals $3.5 million, of which at least half would be directed to businesses in the Kiama town centre."

The two-level retail component featuring two supermarkets would provide jobs for 170 people, meaning some may not have to leave the town for work every day.

"There are many benefits associated with providing jobs closer to home, most notably a reduced need to travel and the flow-on benefits associated with this in terms of reduced pressure on infrastructure," the assessment found.

"A reduction in the number and length of journeys made, in particular those made in private vehicles, has environmental benefits. There are also lifestyle benefits related to increased free time, reduced travel-related stress and a reduced likelihood of road-related accidents."

The introduction of other supermarkets was long overdue; a 2018 Kiama Municipal Council report noted the town needed a second supermarket.

The assessment felt three supermarkets in town could co-exist, with the pair in the Akuna Street development largely being used by those residents in the south-eastern end, while those to the north would continue to use the existing Woolworths store.

It also noted the two supermarkets in the centre would be mid-size compared to the full-size Woolworths.

"The proposal includes two mid-size supermarkets rather than a large single level format supermarket," the assessment stated.

"Nevertheless, there are a number of potential operators that could fill those spaces including ALDI, Supa-IGA and/or a mid-size format Coles.

"Even Woolworths could operate a mid-size supermarket from one of the spaces notwithstanding that it has the full-line supermarket at the north-western end of the shopping centre."