Earlier this week, the new owners of the Hawks announced they were cutting the word "Illawarra" from the name.

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While the owners have stated they have "zero intention" of taking the team away from the region permanently, the change in focus could be enough to make the state government even less intent on refurbishing the ageing venue.

Mr Scully said the uncertainty around the Hawks should instead provide the impetus to upgrade the centre in case it lost its key tenant.

"If the Hawks decide they're going to leave the Illawarra, that means now more than ever it's important to get the venue right so that we can host those second-tier conference events that Labor's been pushing for years, because we know [while] they're too expensive in Sydney, they're perfect in Wollongong.

"But what we've got is a venue that can't handle it. This is the cost of inaction - those sorts of events coming into Wollongong, injecting people into the city, injecting money into the city and creating local jobs."

The call comes as Acting Sports Minister Geoff Lee recommended Wollongong City Council carry out its own planning process for the sports and entertainment precinct that includes the WEC.

In a letter to Mr Scully, the minister said there was "high levels of interest" for a "revitalised tourism and entertainment precinct to the east of Wollongong's city centre" and that he had suggested council move on that.

Mr Scully said he couldn't understand why changes to footpaths outside the venue had any bearing on a WEC upgrade.

Instead, he said the call for a council plan was another instance of the government dragging its feet on the WEC project.

"This is bureaucratic delay on steroids," Mr Scully said, "and it seems now that there can be no doubt in anyone's mind in Wollongong that the Berejiklian government is dedicated and committed to inaction when it comes to the WEC."

Mr Lee said the recommendation for the council planning process came via "advice" from Venues NSW.

"The NSW Government would work collaboratively with Wollongong City Council on the planning process in order to enhance economic and social benefits for the people of the region of Illawarra," Mr Lee said.

"I am confident this is the most timely and effective process to revitalise the precinct."

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