Kiama council has approved the sale of former printing works and car park sites in Shoalhaven Street and former Mitre 10 store in Terralong Street.

Mayor Brian Petschler said council has agreed to the sale to Nicolas Daoud and Co Pty Ltd for $8.5 million.

“The sale requires any development to provide space for a major supermarket operator, meaning a significant long-term boost to employment,” Cr Petschler said.

“This includes jobs created during the construction phase and when the supermarket and other shops in the complex open their doors.”

Kiama council’s Akuna Street car park has long been identified as the council’s preferred location for a second supermarket in Kiama.

In recent years the council has spent almost $7 million buying up property surrounding the car park.

Last year, Aldi confirmed it would open a supermarket at Kiama, after signing a lease agreement with council. 

Aldi is considered a key tenant for the proposed commercial complex.

As part of the sale agreement the developer must submit development plans within six months and receive approval within 12 months.

The agreement also includes that two three-month extensions can be sought if delays occur in the JRPP assessment process, but a penalty fee will be paid to council for each such extension. 

Assessment of development proposals will be managed by the Joint Regional Planning Panel.

“Council will be able to lease the existing buildings for commercial use while the design and development processes are undertaken,” the mayor said. “The council car park in Akuna Street will also continue to operate until construction starts.

“Council is considering providing $2 million from the sale to increase public car parking in the southern Akuna Street car park. 

“This is in addition to the 100 customer car parking spaces to be provided as part of the commercial development of the sites.”

Mr Daoud is in discussions with Aldi, who are now withdrawn from their original agreement with council.