Kiama Council is again facing the courts over the Akuna Street site, with mediation between Council and developer Level 33 collapsing in August. A three-day Land and Environment Court hearing is now scheduled for 10–12 December 2025.

This is no ordinary block. It is the largest redevelopment parcel in Kiama’s town centre, sold to Level 33 for $28 million in 2022. For years, it has been a decaying eyesore, attracting vandalism and complaints. What gets built here will set the tone for the town centre for decades.

Many will remember that this is not the first time Akuna Street has been at the centre of developer disputes.

From Daoud to Level 33, a site with history

• 2016 to 2018: Developer Nicolas Daoud, trading under Traders in Purple, pursued a mixed-use proposal including a supermarket and apartments. When Council refused a final extension to secure approval, the sale collapsed.

• 28 June 2022: Council ran a new selective tender process for the Akuna Street land. Both Level 33 and Traders in Purple (led by Charlie Dowd) put in bids. An alternate motion to negotiate with Traders in Purple was debated but lost. The tender was awarded to Level 33 Property Group Pty Ltd with settlement terms of 42 days (Kiama Council, Minutes of the Ordinary Meeting, 28 June 2022, Item 20.1, pp. 36–37).

• July 2022: Within weeks of that decision, Nicolas Daoud’s company filed Federal Court proceedings against Council, alleging breach of contract and misleading conduct.

• Late 2022: Level 33 completed the purchase of the Akuna Street site for $28 million.

• 14 August 2024: The Federal Court matter Nicolas Daoud v Kiama Municipal Council was finalised. Under a Deed of Release, Council paid Daoud a settlement of $1 million. Council also disclosed legal costs of $3.73 million (excluding settlement), bringing the total cost of the case to $4.73 million, equal to 16.9 percent of the $28 million sale price (Kiama Council, Agenda of 20 November 2024, Item 14.1 p.146 and Item 15.8 p.604).

Why the DA is stuck

The state government planning panel has already said Level 33’s design does not fit the site rules. The main problems are simple. The building is too big, too bulky, and it blocks views.

Council’s Director of Strategies and Communities has been clear on this point. The design is not in step with what Kiama has agreed should be built in the town centre.

Could this have been avoided?

Looking back, there are two lessons.

1. With Daoud and Traders in Purple:
   Clearer timelines, a stronger dispute-resolution process, and more transparency could have avoided the Federal Court. Instead, councillors were left making rescission and tender decisions midstream, which frustrated both sides.

2. With Level 33:
   A design-led settlement, shaped by independent review and supported by a planning agreement for things like streetscape, laneways, and heritage, could still produce a better outcome. Mediation is designed for compromise. If used well, it could save years of delay and large legal bills.

What a VPA could do for Akuna Street

A Voluntary Planning Agreement (VPA) is a tool that lets Council and a developer agree on public benefits as part of a development approval.

A VPA can include:

• Streetscape works, laneways, and public spaces

• Contributions to affordable housing or community facilities

• Heritage protection or conservation works

• Design commitments that go beyond the bare minimum rules

Why it matters here:

• When Council sold Akuna Street to Level 33, there was no chance to negotiate a VPA, because VPAs can only be tied to development approvals, not land sales.

• Now that a DA is on the table, a VPA could still be used to settle the dispute and guarantee public benefits.

The win–win would look like this:

• Council secures design improvements and commitments to protect views and heritage.

• Level 33 gains certainty of approval without the risk of court.

• The community finally sees the site cleaned up and used, with a development that gives something back.

The bigger picture

There has been talk of Kiama as a possible Transport Oriented Development (TOD) site, with six-storey buildings near the station. But here is the reality.

• Kiama is not on the official TOD station list. The mapping covers Sydney, the Hunter, the Central Coast, and some Illawarra stations, but not Kiama.

• Train service is a barrier. With only one train an hour south of Kiama, the service falls well short of what TOD is meant to be built around.

• Community concerns remain. Without upgrades to the rail line, higher-density housing risks creating congestion and frustration rather than better liveability.

So for now, the rules that matter are Kiama’s own Local Environmental Plan and Development Control Plan, which set expectations for height, scale, and streetscape.

The six-storey question

In November 2023, Council approved Local Environmental Plan amendments that raised height limits in parts of the CBD. This means six-storey buildings are now possible in selected locations.

On top of this, the NSW Government’s Low and Mid-Rise Housing Policy, which took effect in February 2025, encourages mid-rise housing near transport hubs. On paper, Kiama fits.

But in practice:

• Land is limited. Only a small amount of R3-zoned land is available within 800 metres of the station.

• Lot size rules apply. Kiama’s Development Control Plan requires a minimum lot width of 25 metres for residential flat buildings.

• Costs are high. Construction expenses, compliance reforms after the Opal Tower, and levies that can take up 40 percent of costs make apartments hard to deliver in most regional towns.

• Community concerns are strong. Overshadowing, traffic, and loss of character remain front of mind.

That is why analysts say Kiama, Byron Bay, and possibly Shell Cove are among the very few regional towns where six-storey projects might actually happen. High land values in these places make it viable where others cannot.

The upshot is that six storeys may be allowed on paper, but the real opportunities are narrow. Without land assembly, high-quality design, and community support, most sites will not reach that height.

Where to from here?

The worst outcome would be to let the Court decide in December, which would leave the community with little say in the outcome.

The best outcome would be for Council and Level 33 to come back to the table, work towards a design that fits Kiama’s principles on size and scale, and guarantee public benefits through a planning agreement. That is the common-sense path.

But here is what we cannot ignore. By November 2024, Council had already spent $4.73 million on the Daoud litigation. That is close to 17 percent of the $28 million sale price. Nearly one-sixth of the community’s return on this land has already been whittled away in legal costs and settlement payments, before a single brick has been laid.

This raises serious questions:

• How much more are ratepayers willing to lose on court battles?

• Why is a developer pushing ahead when both Council and the State have concerns about compliance?

• Should Council bring in independent negotiators to prevent more losses and protect the community’s interests?

The community deserves straight answers  and a future for Akuna Street that does not drain our finances any further.

Thanks to everyone who shared questions and comments on this post. I’ve added extra detail to help answer those and keep the community in the loop.

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