The cost of roads and other infrastructure for the next stage of West Dapto have blown out by $157 million, putting the future of plans for another 4000 homes in doubt.
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Wollongong City Council staff have recommended a planning proposal for Yallah-Marshall Mount - the fifth West Dapto release area - "not be progressed" until infrastructure costs are reviewed.
According to a report to be considered at Monday night's council meeting, the costs have leapt from $74.5 million to a whopping $231 million.
This is mostly due to the need to cater to extra traffic from the new homes at Yallah and Marshall Mount, as well as from the Calderwood development, and make sure the roads remain accessible during major floods.
This "significant increase" in costs is almost double what the council can afford, with developer contributions of $30,000 per lot leaving a shortfall of about $112 million.
Most of the cost blowout is linked to roads, with current estimates of $64.83 million for roads and bridges being revised to "over $200 million".
This does not include the connection of Yallah Road to the Princes Highway and freeway interchange, which has yet to be costed, or future maintenance costs.
Recreational land costs have also gone up by about $1.5 million, and drainage management at Duck Creek and Macquarie Rivulet have added about $1.8 million.
Explaining the extra road costs, staff said "all development areas need to be accessible in the one-in-100 [year] flood" and need to be connected to a flood-accessible route for emergency access.
There were several options for flood access roads, including Marshall Mount Road, Yallah Road and a new "road 8" linking Yallah and Marshall Mount roads to Avondale Road.
Each option had limitations, staff said: Marshall Mount had the longest bridge and highest costs, Yallah Road could lead to a flooded M1 freeway and "road 8" would need to be designed, acquired and built before development could go ahead.
Staff have proposed to review infrastructure costs and prepare a further report before councillors decide whether to send the planning proposal for development at Yallah and Marshall Mount to the NSW Planning department.
Under the plan, the area would have up to 4000 houses, with a village centre, potential school site and "open space in an attractive setting among ecological and riparian lands".
"The vision for Yallah-Marshall Mount is to create a diverse community, based on a walkable, sustainable village centre," the report said.
Councillors will debate the recommendation at Monday night's meeting.
