Major 145-unit development planned for old Wollongong gasworks site

A major 145-unit housing development is planned for the old Wollongong gasworks site at the railway end of Smith St, with four residential towers set to be built on the site.

The development at 120-122 Smith St would form four towers on the Wollongong CBD land rehabilitated under a "big top" by the previous owner, gas company Jemena.

An application is in from Sydney-based Urban Property Group asking for the plan to be treated as State Significant Development, owing its $30 million price tag and its ability to fit into the "in-fill affordable housing bonus".

This bonus is a NSW government rule where developments promising at least 10 per cent affordable housing are allowed to exceed height limits and floor space ratios by 30 per cent.

With 15 per cent of the floor space dedicated to affordable housing, Urban Property said it clearly meets this threshold.

Offering a large number of units near public transport hubs will no doubt be looked upon favourably by a government which has made generating housing supply one of its top priorities.

"The proposed redevelopment of underutilised vacant land to deliver affordable housing will contribute to alleviating the housing affordability crisis in NSW, which is a common goal and objective across several State and Federal government initiative," the application states.

"Critically, the proposal aligns with the overall aims and objectives of the Illawarra Shoalhaven Regional Plan by providing additional activation and vitality to the already evolving Wollongong precinct, while also aligning with the State Government's transport-oriented development principles."

State Significant Development is determined by the Planning Minister rather than a local council.

The 1.6 hectare property was sold two years ago for $18.1 million, according to the website of agents MMJ.

That was less than the $20 million Jemena said it was spending to rehabilitate the site for sale in 2020.

The gasworks operated from 1883 to 1977. When it closed, the above ground infrastructure was demolished and other parts of the site were filled in, but - according to gas company Jemena's 2019 environmental assessment of the site - a range of concerning contaminants had remained in the soil and groundwater.

These included substances which could be harmful to humans, including asbestos, heavy metals, lead, cyanide, petroleum hydrocarbons, nitrates, sulfate, sulphides and ammonia.

Urban Property's application to the Major Projects process requests exemptions from two usual requirements - the State Design Review Panel, and Aboriginal heritage assessment.

Review of the design wasn't necessary because the project didn't meet the cost threshold, and because though meetings with Wollongong City Council the design had already responded to matters raised by the council.

The Illawarra Local Aboriginal Land Council had agreed no further consultation on Aboriginal heritage was needed, the application states.

- with reporting by Kate McIlwain