In a surprise move, Mr Jesson introduced the Killalea issue as a matter of "great urgency" at the end of Tuesday night's Shellharbour council meeting.

He called on NSW Planning Minister Kristina Keneally to reconsider her decision to have the Killalea application assessed as a major project and handle the approval herself.

Mr Jesson wants the power to either approve or reject the Killalea development returned to the council because of the reduced size of the project.

"At a stretch, it might be contended a 202-unit development and associated facilities was an item of state significance. I doubt it, but it could have been argued at least," Mr Jesson said.

"I don't believe the same can be said of a development of 106 units.

"I move that council request the Minister for Planning urgently review the order."

Ms Keneally ruled in March that the Government would determine Killalea Coastal Investments' modified application for 106 accommodation lodges.

Ms Keneally said because the development was in a State Park, and was a unique proposal on environmentally sensitive land, it deserved greater assessment, wider-community consultation and the scrutiny that came with a 3A process.

The fact Shellharbour City Council was under administration contributed to her decision to take over as the consent authority.

Mr Jesson said he was comfortable dealing with an application for a 106-unit development.

"The council planners are just as able as state planners to make a recommendation that is merit-based," Mr Jesson said.

A spokesman for Ms Keneally said the approval process was ongoing and the Department of Planning was awaiting details on the project from the proponent.

The Save Killalea Alliance and South Coast Labour Council will hold a joint public meeting at 6.30pm on Tuesday at the Shellharbour Golf Club.

A protest is being organised by Sonya McKay of the Illawarra Community and Environment Connection to be held at Killalea State Park's undercover kiosk area from 10.30am on Sunday.