Real estate firm Colliers International has been engaged by Kiama Municipal Council to find a supermarket retailer to anchor the council's proposed Akuna Street development.
Once secured, the council will call for expressions of interest to develop the car park site.
Last November Kiama Council released a concept plan of what it would like to see happen on its Akuna Street car park.
The area was identified as a key strategic site by the council in 2002, but multiple attempts to activate the area with a commercial development failed.
The council's general manager, Michael Forsyth, believes the timing is right for the project.
"There is a lot of movement in the market and the site has been attracting interest," Mr Forsyth said.
"We see this as a project that will help reduce escape spending and strengthen the town centre."
Kiama Mayor Brian Petschler said the council was determined that the supermarket be at the heart of any development of the site.
"It is about balancing the whole CBD area and the links into Terralong Street will help rejuvenate Kiama's main street," Cr Petschler said.
"This is a vision the council has maintained for a long time."
The council's concept plan provides for a development that includes a supermarket of 2000 square metres, up to 14 speciality shops, around 30 units and provision to retain the existing 79 public car spaces in Akuna Street.
The development is to be linked to Terralong Street by escalators.
In 2012 the council paid $3.2 million for Weston & Co Publishing's property in Shoalhaven Street, which neighbours the car park.
By buying Weston's 1915-square-metre property, the council became the sole owner of a 5152-square-metre site.