Shellharbour council is considering buying a piece of waterfront land at the Shell Cove marina for more than $2 million.
At Tuesday night's council meeting councillors will vote on whether to spend $2.3 million to acquire the land, off Maritime Drive.
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The land will become the site of a boat maintenance facility (BMF), which will also be able to store up to 120 boats.
"The BMF will increase the market penetration of the Shellharbour Marina by adding boat maintenance, related services and dry boat storage (a more cost-effective option than a wet mooring in the marina)," council papers stated.
"Also, the BMF will generate an additional ongoing source of revenue to council that will continue to benefit the Shellharbour community long into the future."
Due to an agreement between council and developers Australand, the council has first-purchase rights of any lots subdivided at the marina.
It must pay the full market price into the trust fund for the project.