It was supposed to become a $120 million health and aged care complex, complete with a private hospital, retirement apartments, and parking, with the car parking handed back to Council.
Instead, the development failed, the company behind it went into liquidation, and Wollongong City Council bought back the car park it had sold just five years earlier.
Now, after 18 years back in public ownership, Rawson Street car park is on the market again - with aged care and public parking once more part of the discussion.
Council is seeking expressions of interest from developers for the city centre site near Wollongong Train Station, where a future building could reach 80 metres, subject to planning approval.
Lord Mayor Tania Brown acknowledged Council’s approach could mean accepting a lower price to secure uses the community needs.
“If we went out to market, we would get more money for it,” she said.
“But I think it’s important that we try and deliver things that the community actually needs.”
She said Council was responding to concerns about infrastructure keeping pace with development.
“And there’s a lot of talk about buildings going up and there’s not the infrastructure to go with it. And we’re trying to address that.”
The expressions of interest process requires public parking to remain, with key worker housing and aged care accommodation among the possible uses.
“One possible outcome is that development at the site could include key worker housing and aged care accommodation. Both of which are very much needed in the city and by our community,” Cr Brown said.
“I want to be clear, this is not simply Council looking to sell a piece of land within the city.”
The $120 million promise
In June 2003 Jempac bought the 5,500-square-metre car park and adjoining land from Council for $6 million, according to reporting at the time by the Australian Financial Review.
The proposed $120 million development included a private hospital with up to 180 beds, a 120-room nursing home above it, and three towers with 172 self-care units.
Specialist suites, offices, cafes and shops would occupy another 6,000 square metres.
Under the proposal, Council would receive 155 parking spaces back.
At the time, Jempac said combining the facilities would reduce the high costs of running hospitals, nursing homes and retirement villages separately.
Council’s then general manager Rod Oxley predicted the project would deliver 400 to 600 jobs, and the University of Wollongong supported the concept and had discussed possible ties with the developers.
The project won Council approval in October 2005, but the promised complex was never built.
A $6.1 million return to public ownership
By September 2008, four Jempac companies were in liquidation, including the development company involved in the land deal.
Wollongong City Council agreed to pay $6.1 million to buy back the car park, as reported in the council’s 2008–09 annual report.
Developer David Shalala blamed the global financial crisis and an inability to obtain funding.
“It was a great project, and I still believe Wollongong needs a private hospital,” he told the Illawarra Mercury.
“But the economy turned, the financiers collapsed, and we couldn’t get funding for it.”
Colliers Wollongong managing director Simon Kersten said the latest process came at a similar phase in the property market, making the contract and sale conditions particularly important.
“They were lucky to have been able to buy it back last time. This time they’ll want to have a tighter control over the contract and the terms,” he said.
Kersten said conditions governing what a purchaser must deliver could be negotiated into the sale contract.
A council spokesperson said the expression of interest process aligned with the council’s current aspirations for the site.
“Council notes the history of the site and previous unrealised plans for the construction of a combined health and aged care facility and provision of public parking within the city centre.
“These plans recognised the strategic importance of the site given its proximity to Wollongong Train Station, the NSW Health Precinct and other major employment centres, and capacity to deliver a range of community-focused and commercially sustainable uses.”
Another sale, familiar ambitions
The site now provides 195 licensed and metered public parking spaces, bounded by Railway Parade, Rawson Street and Governors Lane.
Kersten described the large, already amalgamated site near the station as “a prime site”, but said construction costs made apartment development difficult in the current market.
“Based upon the price that you can sell these apartments for, it’s very difficult to make the project work right now,” he said.
Other uses could change the feasibility, he said.
Kersten supported Council’s approach of seeking a developer to incorporate uses such as public parking, key worker housing or childcare.
“It makes the negotiation of the sale more complicated, but it’s not impossible, and I think it’s probably the right way to do it,” he said.
Cr Brown said Council was asking developers to propose uses that would address the city’s needs.
“This is Council going to the market and asking developers to come to us with an idea, a plan and a way to support the growth and development of our city, and to address some key challenges we’re facing in areas like childcare, affordable and key worker housing,” she said.
Council General Manager Greg Doyle said the land’s size and connections to transport and employment hubs made it an important opportunity.
“We believe the time is right to explore opportunities here that support the continued growth and activation of the city centre,” he said.
The council confirmed any sale would require approval, with proceeds returned to Council’s property investment fund to support initiatives that advance the city’s long-term strategic development.
“I appreciate that this news may raise questions with those currently holding a licensed space at the site, but there will be no immediate changes to public access to the site,” Cr Brown said.
Expressions of interest close on November 30, 2026.