The massive redevelopment proposed for the City Diggers and David Jones site could send hundreds of cars through one CBD intersection.
The development application for The Globe has been lodged with Wollongong City Council this week.
A major feature is a 15-storey hotel with 236 rooms proposed for the old David Jones building on the corner of Church Street and Crown Street Mall.
That hotel could face issues because, at 61.85 metres, it is 13 metres over the height limits for the site.
A variation request has been lodged to overlooked that non-compliance.
The $229 million Globe proposal also includes an eight-storey office block on the corner of Church Street and Globe Lane and a new registered club and 114-room motel on the City Diggers site.
Below the surface, there would be a six-level interconnected parking area servicing all three buildings with space for 567 cars.
That high amount of vehicles could pose a traffic problem given the only route in or out of the development would be through the intersection at Church and Burelli streets.
A traffic study lodged as part of the development application said the development could generate 182 vehicle movements in the morning peak hour and 306 in the evening peak.
Taking into account the existing uses of the site, the study claimed there would be a net increase of 83 vehicles in the morning and 172 vehicles in the evening.
The study acknowledged that volume of traffic will affect the operation of the intersection.
The analysis grades the expected level of service for the intersection, which now sits at D for the morning peak and E in the evening.
With the new development, both morning and evening peaks get an F - the lowest rating available.
It suggested the problem was caused by traffic turning right into and out of Church Street.
"Upon completion of the proposed development, the performance of the Burelli Street and Church Street intersection will perform at an unsatisfactory level of service based upon the existing traffic light phasing," the traffic study stated.
"An adjustment to the phasing during the peak hour to reduce the current right turn restriction from through traffic for all right turning movements would significantly improve the performance of the intersection."
The study claimed the intersections at Burelli and Keira streets, and Church and Stewart streets would still give a "satisfactory level of service" after the development.
The Globe development application is on public exhibition until November 20.
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