The Environmental Defenders Office has taken on the community battle to stop the commercial lease of Killalea State Park land, and is weighing up its legal options.

The Sydney-based legal centre last year won a high-profile case centred on the Sandon Point development.

The Mercury can reveal the office has taken formal advice from a barrister on behalf of Save Killalea Coalition Incorporated, formed by the South Coast Labour Council and community representatives.

The focus is on the level of community consultation and the State Government's compliance with complex law.

Last April, Lands Minister Tony Kelly signed an agreement to lease three chunks of parkland for 50 years to Killalea Coastal Investments, a joint venture by Babcock & Brown and Mariner Financial, to build 202 units, a conference centre, tennis courts, swimming pools and restaurants.

More than 12,000 signatures opposing the lease of the Crown land were tabled in Parliament last year.

Senior solicitor Jacquie Svenson said there were a number of problems with the way the commercial lease was granted and the process that had since been followed.

"We are pursuing that vigorously but haven't come to a final decision about the best way to proceed," the community legal centre lawyer said.

She said her office was waiting for the development application to be lodged and then would decide whether the best strategy was to raise the legal "flaws" through the development application process or through the Supreme Court.

The lawyers were also waiting on further information from "various agencies".

They have already lodged numerous Freedom Of Information applications with government departments regarding the Killalea development lease.

The Environmental Defenders Office is funded by the Law Society's Public Purpose Fund to provide legal advice and representation in public interest environmental law cases.

The South Coast Labour Council has slapped a green ban on any construction work at Killalea, also known as The Farm.

President of the Save Killalea Coalition, Ben van der Wijngaart, said the process leading up to the lease agreement needed to be assessed.

"Particularly relevant is the public notice placed in the Illawarra Mercury last Good Friday, advertising the minister's intentions to lease the land only two weeks later," he said.

"It's reasonable for the public to question the honest intentions of such community notification."