A Shellharbour village cafe owner has described council-installed signage that directs motorists to a "dining precinct" away from the Addison Street strip as a "kick in the guts".
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New signage has been unveiled at the intersection of Addison Street and Harbour Boulevard.
Three arrows point towards Shell Cove Town Centre, Shellharbour Marina and a "Dining Precinct".
One arrow points to "Shellharbour Village".
RawR cafe owner Andrew Rosengaus described the signage as a "kick in the guts" and evidence of Shellharbour City Council's prioritisation of Shell Cove over Shellharbour Village.
"Since day one, Shellharbour council has been putting funds into Shell Cove as a priority rather than Shellharbour village, and I would say that sign is a further sentiment of council's vision of Shell Cove as a priority," he said.
A Shellharbour council spokesperson said the signage was only partially complete, and once complete there would be additional wayfinding directing visitors to Shellharbour village.
"The feedback reported unfortunately pre-empts the completion of the sign installation with only half of the sign so far completed," the spokesperson said.
"Once the installation is completed, the other half of the sign will point to some of the attractions that draw visitors into Shellharbour Village."
Since The Waterfront Tavern opened in late 2021, The Waterfront has welcomed a number of hospitality venues including cafes, takeaway joints and restaurants, with the permanent location of cult Kemblawarra donut van Donut Jam the latest to open.
In the meantime, the dozen or so established Shellharbour Village cafes and restaurants have not only dealt with rising interest rates and cuts in consumer spending, but a series of construction projects that have disrupted foot traffic.
Member for Shellharbour Anna Watson said she was contacted by business owners about the new signs they say are the final nail in the coffin.
"They're already struggling to stay afloat and here we have a council in partnership with Frasers redirecting traffic to a dining precinct away from the Village."
The Shell Cove development is a joint public-private partnership between Shellharbour council and Frasers Property Australia, and will result in the creation of the master-planned Shell Cove community, including hundreds of homes and apartments as well as a major marina and five star hotel, which have already attracted hundreds of thousands of visitors.
Mr Rosengaus said in an ideal world, such a destination would promote visitors to explore the nearby, established businesses in Shellharbour village, only a five minute drive away.
"There needs to be unity, not competition."