The chamber will host a business workshop on Tuesday at Port Kembla Leagues Club from 4.30pm to debate the redevelopment of the Wentworth St area, being dubbed the "Port Kembla Quarter".

The area extends from Church St to the south, Military Rd to the north, and the lane between Wentworth and Kembla streets to the north.

The workshop coincides with Wollongong City Council's decision last month to resume the Port Kembla Main Street Study, which was indefinitely deferred in 2008 despite being 90 per cent complete.

Scenarios being put forward by chamber member Sandy Halley range from seven-storey development throughout the town to transforming Port Kembla into a trendy Newtown-style town characterised by art galleries, cafes and a vibrant nightlife.

Doing nothing would "sentence the businesses, residents and property owners to a future of further dilapidation," he said.

But the preferred option is to implement the draft strategy prepared by consultants GHD during initial work on the revitalisation strategy.

Chamber president Phil Bowden said the Port Kembla Quarter could be a hub for specialist businesses.

"Doubling building density in Port Kembla's main street is the spark we have been waiting for to ignite investment in the business precinct," he said.

"We want more Tonitto's - specialist providores making or selling pasta, coffee, chocolate, cheese, sausages, ethnic specialties - and more Fellini's and Romeo's restaurants.

"We want more artists, artisans and other creative industries living, making and selling in the Quarter," Mr Bowden said.

The report recommends higher density development behind existing shop fronts and heritage facades.

Four-storey height limits would be implemented along Wentworth St, except for gateway sites at each end of Wentworth St where up to seven storeys could be permitted.

A rezoning proposal for the Wentworth Lodge backpackers' hostel site has already been sent to the Department of Planning for endorsement.

The proposed business park zone would allow a building up to 20m high, or six storeys.