Construction of a state-of-the-art aged care home and community hub at Shell Cove is expected to pump more than $43 million into the region's economy.
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Executives from Illawarra-based aged care provider Warrigal joined Minister for the Illawarra John Ajaka and Liberal candidate for Shellharbour Mark Jones to turn the project's first sod on Friday.
The precinct, to be built on the corner of Cutter Parade and Brigantine Drive, will provide 128 aged care beds and a community centre close to the new Shell Cove Marina.
Mr Ajaka, who is also Minister for Ageing and Disability Services, said Warrigal planned to build 33 villas, 47 apartments and six serviced apartments nearby, creating a "world-class integrated aged care precinct" that would allow older people to "continue living as they choose".
The $37.8 million project, which is expected to generate 366 construction jobs, was allocated $17 million from the Restart NSW Illawarra Infrastructure Fund.
"This is a perfect example of how the Baird government's lease of Port Kembla is now directly benefiting the more vulnerable in our community," Mr Ajaka said.
Warrigal plans to start site preparation and clearing work next month.