Modifications were this week approved for an Avondale development at the centre of an alleged large-scale real estate scam.
The approval came on the same day police raided a series of sites across Dapto, subsequently charging three men in relation to the alleged scam.
Wollongong City Council says the timing is "coincidental".
Elie and Charbel Douna were arrested in sweeping raids along with an Illawarra real estate agent Ben Feltham after police uncovered what they allege to be a "large-scale" fraud plot.
After a months-long probe, police swooped on five businesses and homes in the Dapto area just after 9am on Wednesday.
Police allege the 33-year-old brothers, who operate LuxLiving Homes in Albion Park Rail, were using falsified documentation in an alleged attempt to obtain a $14.7 million loan to construct homes for their development, Avoca Park, in Avondale.
The development site is comprised of three properties at 24, 24A and 24B Avondale Road.
Consent was issued for the demolition of existing structures and tree removals and construction of multi-dwelling housing (92 dwellings) constructed over eight phases with associated infrastructure including an internal private road network, stormwater drainage, on-site parking, communal open space and landscaping.
The original application was lodged in December 2018, and approved by council in November 2019.
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In January, a DA was lodged with proposed amendments that were considered "relatively minor", according to a council report.
On Friday, a council spokesperson told the Mercury that council issued an approval to modify an existing development consent for 24, 24A and 24B Avondale Road on Wednesday.
"The proposal to modify the property's existing development consent to amend the phasing program and the removal of balcony from Unit Type 6 was approved under delegation," the spokesperson said.
"Any timing between council's approval to modify details within the existing development consent and a NSW Police investigation is coincidental."
The site is irregular in shape and falls from the south to the north, from the Avondale Road frontage to Mullet Creek at the rear of the site.
Police say 10 contracts for the construction of 19 homes, which was stage one of the 92-home development, were legitimate while nine contracts were allegedly forged.
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