Work has begun on what is being dubbed the "beating heart" of The Waterfront, Shell Cove.
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Duffy Kennedy Constructions on Monday commenced construction of The Waterfront restaurant and promenade precinct at Shell Cove.
This represents the start of construction of the Aqua apartments, waterfront restaurants and promenade, all to be completed in mid-2021, as well as a new connection between the existing town centre and the boat harbour.
A ceremonial sod-turning took place to mark the occasion.
Simone Dyer, development director - Shell Cove, at Frasers Property Australia said this was "an extremely exciting milestone for the project".
"This will be the first piece of infrastructure that's delivered that's publicly accessible on the harbourfront," she said.
"It will deliver some of the amenity that the community has been waiting some time for.
"There are many residents of Shell Cove who are looking forward to being able to have something to eat within walking distance to home.
"This will be a high-quality food and beverage dining precinct; a little like King Street Wharf, but in microcosm."
Gavin Duffy, CEO of Duffy Kennedy Constructions said the end result would be a "flagship property and development for the whole area".
The Aqua apartments release at The Waterfront sold out within hours in early 2018.
The Waterfront, Shell Cove is a joint venture development between Shellharbour City Council and Frasers Property Australia.
Shellharbour Mayor Marianne Saliba said this event marked "us getting to the pointy end of the project".
She said the restaurant and promenade precinct will become "the beating heart" of the entire Shell Cove vision.
"This section of the project will be the centrepiece of The Waterfront, Shell Cove," she said.
"This new precinct will provide a wonderful amenity for our own community as well as attract visitors, boost our economy and encourage job growth.
"At least 200 jobs are expected to be created with the construction of this stage, including local tradespeople, services and suppliers."
Construction of The Town Square Water Play area, including public art and landscaping, will commence on-site within the next fortnight.
Ms Dyer said construction is at its highest level yet on the Shell Cove project, with five major construction contracts currently under way.
"Within the boat harbour itself, Walcon Marine is well under way with the construction of the marina piles in the inner harbour, with piling work to begin in the outer harbour later in the year.
"Coastwide Civil is finalising work on the breakwall and groyne as well as undertaking civil works for the next land lots release which will also include the platform for the boat maintenance facility and dry boat storage, and the boat ramp car park.
"Work is also now well under way on the next retail stage on Cove Boulevarde across the road from the existing town centre, with completion expected in November this year."