Plans for a childcare centre at Bulli that could accommodate about 40 children could progress to the next stage after next week.
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Wollongong City councillors will be asked at Monday's meeting to consider referring a final planning proposal for 4 Yenda Avenue to the NSW Department of Planning, Industry and Environment for approval.
The planning proposal seeks to amend a local planning control covering the site to include a childcare facility as a permissible use.
"The need for additional child care in the Illawarra Region was identified by the former NSW Department of Planning and Environment as a result of Wollongong's growing population," the report to go before council says.
"Additionally, the supporting analysis within the planning proposal, carried out by the proponent, identified a lack of child care in the northern suburbs in proximity to the site."
The Yenda Avenue block contains a house, a farm shed and a swim school with car parking.
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The swim school building is identified as the likely building from which the child care centre would operate.
During the public exhibition period the council received 15 submissions from community members, all of which raised concerns about potential traffic, parking and pedestrian movements.
In response, council staff say pedestrian safety is unlikely to adversely affect pedestrians and the road network can support the anticipated level of traffic generated by the centre.
Bushfire safety was also raised in some submissions, but the NSW Rural Fire Service raised no objection to the proposal.
Other concerns included overdevelopment of the site, risks to children being in close proximity to bushland, and noise, among others.
Council staff recommend councillors refer the planning proposal to the planning department.
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