Mr Homer was among the community members who rallied in 2007, when the Save Killalea Alliance was formed to fight a $35 million development that would have seen 106 accommodation lodges built on the site.

That proposal ultimately didn't go ahead.

Read more: Thousands sign petition to stop $10m tourism plan at Killalea State Park

Kiama MP Gareth Ward last month announced that the NSW Government had awarded a $6.5 million grant to upgrade the site, run by the Reflections Holiday Parks group which will invest $4.4 million into the project.

As well as 15 luxury cabins and the function centre, the redevelopment would include 53 full-serviced campsites, a new playground, walking trails and outdoor recreational equipment.

Mr Homer, also chair of the Killalea National Surfing Reserve Committee, said the sense of history repeating itself "has been stoked by the fact that no one's got any information" or plans.

"All we have is a proposal that's received grant funding.

"The community has been put off-side from the get-go.

"We're all connected to what happened in the past, and that's brought up a lot of bad feelings about what's going to go on down here.

"There's a lot of worse case scenarios going on."

Mr Homer was among the few hundred people who attended a community meeting at the park on Sunday, organised by Shellharbour councillor Peter Moran.

Read more: Wait and see the plans for Killalea, says family descendant

The meeting was to gauge public interest in the issue, and enlist members to be on a Save Killalea committee.

Kiama Downs' Tanya George from the Friends of Minnnamurra River group said the proposal seemed to be a case of awarding money to "essentially a private enterprise".

"That money really should be spent across the board in terms of the environment, as well as upgrading facilities, not just increasing the building envelope of current facilities," she said.

Cr Moran said many committed and passionate residents attended to demonstrate their love for the park, and were determined to be involved in the decision-making process.

He said those present had voiced opposition to the plans that "have been developed in secret".

He said residents' concerns included the potential for development on the site's ridgeline.

"It's the local community that uses this park on a daily basis that knows best what issues surround the use and management of the park," he said.

"This whole process has started without the local people being consulted, and that's what we need to change."

Mr Ward, who told the Mercury he wasn't invited to the meeting, said there would be a development application process.

"What's proposed is the renovation of existing campsites where there are campsites, the addition of 15 cabins where there are already cabins, and a new community hall facility," he said. "This is not the huge development that was proposed by Labor.

"This is the renovation of existing assets to make the park sustainable.

"The community will have every opportunity to have their input throughout the DA process."

A petition calling on the government to scrap plans to redevelop Killalea has amassed 12,000 signatures.