The four-storey proposal on the southern side of Akuna Street is a step closer to reality after Kiama Council on Tuesday night voted unanimously to approve the updated development application.

A 38-apartment complex will be built at 14 Akuna St which will also house four commercial units on the ground floor.

After the initial DA was lodged, Council staff informed the developer that it would need to alter its plans and an updated submission was lodged.

Despite concerns over non-compliance with building height and floor to space ratio limits, all nine Councillors voted to approve the proposal.

Councillor Melinda Lawton raised concerns about adopting the plan but was reassured by Council’s director strategies and communities Ed Paterson who said the non-compliance “variations” were minor.

He said they “don't have any broader detrimental impact on neighbours, be it overshadowing views or whatever else the objectives of those individual controls are".

“And that is what is asked of Council when assessing applications utilising Clause 4.6 of the Local Environment Plan - that you have to flexibly apply controls and ensure the objectives have been met and the public interest has been met.

“So that's the conclusion that staff have come to.”

Councillor Erica Warren asked whether the balconies of the proposed development will “look directly into the backyards” of nearby residents.

Paterson responded by saying he could not comment on how it will directly impact the neighbours, “but it's always going to impact people differently”.

“The quantitative assessment that has been undertaken is there is compliance with setback requirements in both Council's Development Control Plan and the Apartment Design Guide. Louvres and privacy screens are proposed on the balconies.

“The properties on Bong Bong Street sit quite higher than this site so it's not as though all units are directly overlooking into balconies and backyards. So a relative and reasonable privacy is maintained as per our Development Control Plan.”

Kiama Mayor Cameron McDonald praised the planning department for its efforts in getting the modifications made to the DA, which included issues such as potential groundwater contamination and pollution, sustainability measures, aesthetics, solar and daylight access, car parking design and waste collection arrangements.

“As Councillors, we need very good reasons not to follow a recommendation. What we have seen from our planning department is very good communication with the applicant and a comprehensive report prepared for Council and so as an elected body we supported that recommendation,” he said.

Council CEO Jane Stroud was pleased to see this development proceed.

“I was glad - that development application has a long history. It has been with Council for some time and then it was withdrawn and reworked on,” she said.

“So in terms of the plans that were put forward to Council for endorsement, we were grateful that that was a unanimous decision. And now we just need to see the developer crack on with it.

“That whole process is more in line with the planning reforms that are happening across the state. Rather than just leave a development application in the system and go through hundreds and hundreds of days of long, drawn-out conversations, these days we push for the withdrawal, we tell you what the issues are, we expect you to take them on board and make your application properly so that we can get it in and get it out for you.”

The Caliope St site.

Demolition and construction is expected to start later this year but no official timeline has been released.

Council is also looking to expand the local housing supply with a new development at Caliope Street, an elongated, irregular-shaped allotment of land situated on the south-eastern corner of Old Saddleback Road.

A motion was endorsed for a Planning Proposal to be submitted to the NSW Department of Planning, Housing and Infrastructure for a Gateway determination.

If approved, the Planning Proposal would be placed on public exhibition to enable community, stakeholder and state agency consultation to occur.

Paterson said a maximum of 20 low-density residential units would be available if the project goes ahead.

Cr Lawton raised objections at the Council meeting over the impact on Zieria granulata, a small shrub native to the area which is protected under the Biodiversity Act and a heritage-listed drystone wall along the southern boundary.

The western part of the site has been strategically identified as a suitable site for residential development in Council’s Local Housing Strategy while the remainder of the vacant land is considered environmentally sensitive and it is proposed that it would be preserved for conservation.