The developer and owner of the Corrimal Cokeworks site have vowed to preserve the former industrial land's history and character in their revised planning proposal.
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The development would still have about 700 homes but more open space including a park and community garden.
In April last year, Wollongong City Council voted to allow a proposal to rezone the former cokeworks site to progress through the state planning system.
Development partners Legacy Property and the Illawarra Coke Company have updated their plans after further consultation with residents who raised concerns about the number of homes, heritage retention, traffic flow, flooding and the preservation of the environment.
Details of the revised plans and summaries of technical studies were revealed to the community at information sessions on Saturday.
Based on community consultation, the history of the site will be celebrated by retaining the two iconic chimney stacks that will "book end" the development.
Legacy Property head of strategy and acquisition Mike Williams said he hoped the development attracted a range of people including first-home buyers, families and retirees.
"Our revised masterplan really focuses on housing diversity, a great mix of residential product including medium density, townhouses and apartment blocks," he said.
Mr Williams said the "board range of studies" they had done validated the concept for the site and they believe 700 homes was appropriate.
"We strongly believe this is the best location for new housing in the northern suburbs," he said.
The site has been divided into zones with each one providing a different style of housing so not all buildings look identical.
"Now we have also included housing for older people in the form of seniors living and aged care facilities," Mr Williams said.
The company has talked to aged care providers, including some in Wollongong, but a provider has not been chosen yet.
The facility is expected to have about 80 to 100 beds and 60 to 80 seniors living apartments.
There will also be a small neighbourhood centre for convenient grocery shopping and some cafes.
Mr Williams said the community didn't want the retail centre to detract from the main street therefore it had been kept small.
The notorious 'pinch point' intersection of Memorial Drive and Railway Street will also be upgraded to allow for more cars to use it safely.
"We have undertaken comprehensive traffic modelling in consultation with the council and state authorities," Mr Williams said.
"That has shown that local roads and the intersection has the capacity to accommodate the development and we will undertake upgrade works to provide additional capacity where required."
Residents had raised concerns about potential contamination of the site. The developers will remediate the site to state government standards.
"An extensive extensive testing program on the site has shown there is not widespread contamination," Mr Williams said.
The dry and weed infested creek will also be realign to mitigate flooding risks and more green space has been allocated in the development.
"There are a number of areas of important environmental value on the site and we have worked to retain them from day one and that remains consistent in our revised plan," Mr Williams said.
The proposed footpath and cycleway will be built along the length of the development and will cross over the creek at the southern end. The path will connect to the existing path network which provides access to the beach.
Mr Williams said the established trees at the development's one entry and exit point would be retained and residents would have a line of sight to the chimney when entering.
Mr Williams said the owner hoped the rezoning was finalised by mid next year.
Mr Williams said he would listen to the feedback from the community in Saturday's consultation and then review the plans before submitting them to council. There will be further consultation and a formal exhibition period later in the year.
Initial demolition work will begin in coming months to remove the unsafe and vandalised buildings on the site.
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