The proposed cinema complex in WIN Grand could end up replacing the one just a block further along Burelli Street.
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The development - backed by WIN Corp owner Bruce Gordon - includes space for a 10-screen cinema in the same area that now houses the Grand Hotel.
According to development documents filed with Wollongong City Council, there is the possibility the city could still end up with one cinema complex.
"The proposed cinemas could be expected to replace the existing cinemas that have long operated in the CBD, east of the site," the Transport Impact Assessment stated.
However, development manager Steven Turner said this did not necessarily mean the Event Cinema just down the road would disappear - they could be the ones who ended up in the WIN Grand development.
"We are talking to a whole raft of operators in the industry," Mr Turner.
"There is a lot of interest in having a cinema presence and that includes the team from Event who are running the Greater Union Theatre just down the road.
"We will continue to discuss that. It will ultimately depend on who we end up going with for that cinema offering as to what that does to the existing operations."
While the plans now show a 10-screen complex over three levels - two in the basement and four on each level above - Mr Turner said the final breakdown would depend on the requirements of whichever cinema company signed up.
The basement screens would be on the same level and the music venue, though Mr Turner said a band gig wouldn't affect those watching a movie next-door.
"The live music venue, it's almost a venue within a venue, it's a fully encapsulated soundproof performance venue inside the Grand Hotel," he said.
Meanwhile council has said a final decision on the large development could still be months away, according to a Wollongong council spokeswoman.
"The proposal is a regionally significant development due to its dollar value," the spokeswoman said.
"This means that while council will assess the application, and seek feedback from a range of external agencies including the Design Review Panel, the proposal will ultimately be determined by the Southern Regional Planning Panel.
"It's anticipated this meeting will take place in 2022."
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