The Villa D'Oro function centre in Flinders Street, Wollongong, would be demolished to build a multi-storey apartment complex if a development application is approved.
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Wollongong City Council has received an application for five lots of land at 35-43 Flinders Street, which includes Villa D'oro and a car wholesaler.
Villa D'oro's management has said all events booked through to the end of 2022 will be held at the venue and takeaway and catering services will also continue until that time.
The developer is looking to build an apartment complex on the site, which will climb as high as nine storeys at some points.
The development would include 201 apartments - the bulk of which with two bedrooms, with 55 one-bedroom apartments and just four with three bedrooms.
"Average household size is expected to continue declining and population projections indicate that the one-person household is the type of household expected to experience the greatest percentage increase over the coming years," the development application stated.
"The proposed provision of apartments is consistent with the expected increase in smaller households."
On the ground floor will be commercial space for two tenants and parking will be on two basement levels.
The parking entry and exit will be from Flinders Street, at the northern edge of the development.
"The proposal is a high-quality transit-orientated development," the application stated, "that will provide both housing choice and employment generating floor space in a location that enjoys exceptional access to both North Wollongong train station, Wollongong train station, Wollongong central business district, the nearby Beaton Park sports fields and leisure centre, and the beaches to the east."
The apartments will be built in a U-shape, with a central open space to be grassed and planted for the use of residents.
"The proposed development provides 1836 square metres of common open space distributed throughout the development which is the equivalent of 28 per cent of the site area," the application stated.
"The common open space areas are distributed across the site and include the large central and rear landscaped spaces on the podium level, as well as a generous rooftop terrace facing Flinders Street."
According to a traffic study, the extra vehicle movements caused by the development will lead to "minor increases" in delays at nearby intersections.
"The anticipated traffic generation of the development equate to an additional 145 vehicle movements during the morning peak period and 68 vehicle movements during the evening peak period," the study stated.
The proposal is on public exhibition until October 20.
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