Wollongong City Council has written to the developers, Thirroul Plaza Pty Ltd, saying the development would need a "substantial" redesign and without this it's likely council would recommend the plans be rejected.

The concerns which have not been resolved are many, and include traffic - that the proposal does not adequately minimise the vehicle demand impacts that would be produced - issues which had been raised by Transport for NSW.

But the developer has signalled it is not likely to withdraw.

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The project's design, and compliance with planning controls, also had outstanding issues. Council also raised heritage and environmental concerns, flooding and stormwater issues, concerns about design quality, height limit breaches and the effect on the amenity for pedestrians.

"A range of significant matters have been identified or remain unresolved," council's letter said.

"It is considered that these matters will require substantial changes to the design and to the extent and nature of the uses proposed onsite.

"As a result, council suggests you withdraw the application and lodge a more complete application at a future date which addresses the matters identified below.

"If you withdraw the application, we will consider a request for a partial refund of fees. In the alternate, if the application is not withdrawn a report will be prepared for consideration by the Southern Regional Planning Panel (SRPP) at a future date with a likely recommendation for refusal."

A Thirroul Plaza spokeswoman said the company was "reviewing our position but we will not be withdrawing the DA".

Development company Thirroul Plaza Pty Ltd is owned by Austinmer engineer Angelo Forte, Austinmer builder Mark Forte, their investment partners from Mainland Civil in Sydney, and others from Queensland.

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