Expressions of interest will soon be called for Shellharbour City Council's land at Tullimbar, the first council asset to hit the market to fund the construction of the proposed $57 million City Hub.
The 42.25 hectare site, which sits between the western edge of Albion Park and Tullimbar Village, has development approval for 284 housing lots and three super lots, with CBRE Real Estate given the green light to begin an expression of interest campaign after councillors voted 5-2 to start the sale process.
The council aims to get $34 million from the sale of assets to put towards building the hub.
Other properties earmarked for sale include the council's administration building, known as Lamerton House, and the parcel of land beside it known as Lot 3000, the former council chambers and administration centre in Warilla and land in Pioneer Drive, Oak Flats.
Councillor Kellie Marsh opposed the sale of the Tullimbar land, as she maintained her opposition to the City Hub project.
"I don't support the City Hub and do not support the sale of a city asset," Cr Marsh said.
The sale of the development site would put more pressure on Tullimbar Estate and with the 4800-lot Calderwood project "hanging over our head", the council already faced an infrastructure burden that would only increase with the sale of the council land, Cr Marsh said.
However, Cr John Murray said it was good business management to look at what assets the council had and divert the ones the council did not need into a more constructive purpose.
"The issue of Calderwood has been raised a number of times and I would have thought it was the perfect time to be selling the land at Tullimbar," Cr Murray said.
"Once Calderwood is developed, there could be an oversupply but this land is ready to go now.
"Calderwood will not be ready to go for a while yet so I think, this is a good time to be testing the value of our asset."
A financial update on the City Hub funding, excluding commercial-in-confidence information, will be presented to the council on October 8.
In May, the council appointed CBRE to work with Illawarra agents MMJ to market and sell the properties.