As the Shell Cove project's focus shifts to the boat harbour, the composition of the new Shell Cove Advisory Group has been criticised for including only Labor councillors.
The advisory group, which will "consider significant policy issues", comprises the mayor and two councillors, the general manager and three directors.
Members of the advisory group will be required to sign confidentiality agreements "due to its consideration of commercial-in-confidence information".
On Tuesday night, Labor councillors John Murray and David Boyle were elected to fill the two councillor positions by a vote of 4-3, with Liberal councillor Paul Rankin backing the Labor appointments.
Cr Peter Moran, a long-term critic of the Shell Cove project, said the committee would achieve more if it wasn't filled by "people who say yes to everything".
"The committee would be best served if it had someone with a critical eye," Cr Moran said.
"There is no point having a committee if you just accept everything the staff and Australand say."
Cr Helen Stewart also believed that having a variety of views on the committee was in the community's best interests.
However, Mayor Marianne Saliba took exception to councillors Boyle and Murray being labelled "yes men".
She said the committee was formed prior to the mayoral vote and at that stage there was no guarantee she would be mayor.
The vote was on Tuesday.
The committee was formed as Shellharbour council adopted a course of action for the Shell Cove foreshore development phase labelled The Waterfront.
The harbour and breakwaters are due for completion in early 2019 with the surrounding foreshore development to be constructed between 2014 and 2025.
The first stage of the town centre in The Waterfront is expected to be completed in late 2015 or early 2016.
The Waterfront will be a residential, tourism, entertainment and commercial precinct that will be the focal point of Shell Cove.
Matters to be considered by the council in the future include the use of public spaces, the layout and future management of the marina, council public facilities and buildings, and potential commercial opportunities.
The Shell Cove Advisory Group will refer technical investigations to internal staff reference bodies called Waterfront Activities Groups, which will also consider event management, maintenance of open spaces and infrastructure.