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The controversial management plan for Sandon Point has officially been adopted but Wollongong councillors could not play down the division that still exists between residents of the area.
On February 23 councillors voted 6-4 to accept the plans, and also highlighted the importance of an agreement from five Aboriginal community groups to participate in future discussions about the site.
This decision was reached despite dozens of submissions from residents that showed the long-held tensions - mostly over the Sandon Point tent embassy - have not abated.
Nevertheless Wollongong Lord Mayor Gordon Bradbery said it was exciting that five Aboriginal groups had come together.
"This is an exciting step, and a necessary one. I wish to thank everyone who has been involved in this process," Cr Bradbery said.
In public submissions lodged to protest the final stage of the plans, residents of the Sandon Point and McCauley's Beach housing estates near the tent embassy said it was "an eyesore", which is "embarrassing because it looks like a tip".
They also raised concerns about safety and said there should be no residential accommodation on the site, instead suggesting a kiosk or another building be established to mark the area's heritage.
Greens councillor George Takacs said Aboriginal people should control their land.
"My preference would be to say that the area of land that is an Aboriginal place should be managed solely by the Aboriginal community, but the current legislative arrangements in this state does not allow for that," he said.
"So having a joint management agreement between the council and those five Aboriginal groups is, I think, the only compromise we can support."
Liberal councillor John Dorahy echoed Sandon Point residents' concerns about "illegal vegetation" and cars using the pathway.
His fellow Liberal councillors, Michelle Blicavs and Bede Crasnich agreed more needed to be done to address concerns, and suggested future plans for the tent embassy be in place before the plan of management was adopted.