A concept plan for an aeromedical facility at Illawarra Regional Airport has been approved by Shellharbour City Council as it continues to seek Port Kembla port lease funds for the project.
A new facility for the rescue helicopter at Albion Park was one of 20 projects that made the shortlist for the $100 million Restart NSW Illawarra Infrastructure Fund.
Shellharbour council's request was for full funding of a new facility for the aeromedical helicopter service, estimated at $6.5 million.
Four potential locations at the airport were presented to councillors at an extraordinary council meeting on Tuesday night.
The chosen location is just to the west of the terminal that was destroyed by fire in May this year.
The terminal building will eventually be demolished, but there are currently no plans to rebuild.
The proposed aeromedical facility will consist of a 35 x 25 metre hangar and an operational building about 26 metres wide by 11.5 metres deep. This would provide space for two helicopters.
Currently one aeromedical helicopter is housed in the nearby HARS building, which is closed to the general public as the HARS organisation upgrades fire safety measures to obtain an occupation certificate.
The council agreed the proposed location provided accessibility, safety and cost efficiency without affecting any future plans for an airport terminal.
"This decision takes into account the current and future possible uses of the airport and has the support of the airport's business operators," Shellharbour Mayor Marianne Saliba said.
"The aeromedical service is a vital emergency service that would be well positioned in Shellharbour City for greater access to the Illawarra and South Coast regions."