Wollongong, Shellharbour and Kiama councils could be granted up to $3 million from the state government, under a newly announced $250 million public spaces fund.
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Part of the NSW Government's COVID-19 Recovery Plan, the grants were announced by Treasurer Dominic Perrottet, who said said councils that fast-track development assessments for projects that deliver jobs and housing will be eligible for funding for parklands, town squares and main streets.
"As part of the NSW Public Spaces Legacy Program, councils that push forward with assessments of job-creating projects will be incentivised with funding for more, and better, public spaces," Mr Perrottet said.
"This program will unlock construction jobs across the State helping combat the economic shocks of COVID-19 while making communities a better place to live."
The government has suggested "legacy projects" be put forward, such as new parks, walking trails, more walkable and inviting streets and open spaces for their communities.
This new program is only available to the 68 councils currently participating in the e-planning system.
Under the fund guidelines, metropolitan councils will be able to access between $4.75 and $5.5 million from the fund and while "metropolitan fringe councils" can apply for up to $4 million.
Despite being classed as metropolitan under many of the NSW Government's other funding rounds, Wollongong and the similar city of Newcastle are classed as regional cities and eligible for the $3 million.
Shellharbour, Kiama and Shoalhaven are also classed as regional cities.
Shellharbour mayor Marianne Saliba said she would ensure her council applied for the full allocation it was entitled to, and noted the council had made great strides in improving publics spaces - such as the popular Reddall Reserve - across the local government area in recent years.
Wollongong's acting lord mayor Tania Brown said the council would review the guidelines and determine which public space projects would be most appropriate for the fund.
Councils are required to submit their applications by August 28.
At Monday night's council meeting, councillors will consider a report on fast-tracking development applications and other planning matters, which will ensure its eligibility for the fund.