Shellharbour councillors could approve a seven-storey development despite it breaching the height limits by more than seven metres.
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Council staff have recommended the development in Minga Avenue, Shellharbour, should be approved.
The proposal would see a complex featuring nine commercial premises and a cafe on the ground floor and 46 residential units above at the vacant lot on the corner of Minga Avenue and Cygnet Avenue.
The $21 million development includes an eight-storey section on the corner with the remainder of the building to be five storeys.
The Shellharbour Local Environmental Plan (LEP) sets two maximum building heights across the vacant block - being 18 metres and 15 metres.
However, the eight-storey component exceeds that height by 7.6 metres.
"The majority of the proposed envelope complies with the 15-metre standard and, if not for the site's significant gradient, substantial compliance would have been achieved for that part of the site subject to the 18-metre standard," said a request lodged for an exemption from this height restriction.
Council officers have recommended the height restriction exemption and the application be approved by councillors at Tuesday night's meeting.
The business papers stated that lowering the development's height to the maximum in the LEP "is not considered to achieve any material benefit" for the Shellharbour town centre.
The papers also stated the 33 per cent height variation was actually less than other approved developments in the city centre.
A commercial-residential development at 16 College Avenue was approved with a maximum building height of 27.54 metres, 53 per cent above the maximum height for that site.
The Shellharbour Civic Centre - which houses council staff - was approved despite being 63.3 per cent above the maximum height.
"The proposal is considered appropriate having regard to the zoning of the site, and that the proposal is not expected to result in negative impacts on the amenity of the locality or adjoining developments and it is recommended that the DA be approved subject to conditions," the Shellharbour Council business papers stated.
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