Warrawong plan uses hospitality spine to fund 32ha parkland precinct
Commercial leases will fund public upgrades
The finalised Warrawong Parklands Master Plan, released today, sets out a framework for transforming 32 hectares of under-utilised foreshore into a mixed-use public precinct, with a commercial component intended to fund the project’s long-term operation.
A commercial anchor for the southern foreshore
While the plan includes significant recreational upgrades, its proponents argue its viability depends on establishing a permanent retail and hospitality spine along the waterfront. Planning and Public Spaces Minister Paul Scully, the Wollongong MP, described the commercial element as the project’s financial foundation: “This is what helps to pay for it ... about 2% of the area is looked at as a commercial offering.”
The retail precinct is positioned to serve the substantial residential growth planned for the adjacent Warrawong Plaza site, which is earmarked for 1300 new homes. Scully told ABC Illawarra that the approach marks a departure from earlier proposals for the land: “Under the previous government, this area was looked at, and all anyone saw was dollar signs as they tried to sell it off.” The plan instead proposes inclusive retail opportunities for local operators, with the precinct intended to extend the Warrawong town centre to the waterfront.
Legislation and land protection
The timing of today’s announcement is significant, moving the project from its 2025 community consultation phase into a finalised blueprint. However, the plan’s immediate implementation depends on the passage of the Greater Sydney Parklands Trust Amendment (Review) Bill 2026, currently before parliament. The legislation is needed to allow the Trust to operate within the Wollongong local government area, bringing the site into what Scully described as “one of the great network of great parklands across New South Wales.”
For those with a long-term stake in the site’s public character, Scully offered an assurance about ownership: “With a legislative change ... we can protect this site from sale forever,” adding that while commercial leases would exist, “the underlying land ... would always remain in public hands.”
A staged delivery plan
The Master Plan re-imagines the reclaimed land of the Kully Bay foreshore as a resilient, multi-use precinct. Key infrastructure includes a 320-metre wetland boardwalk, an upgraded sports hub, and a new accessible paddleboard launch. Scully framed the plan as a complement to broader development pressures in the region: “While we’re doing the jobs work ... doing the housing, that we’re also making sure that there’s good recreation spaces available to people.”
Delivery is structured across three stages:
The Welcome Stage focuses on core park infrastructure, including 10 kilometres of paths and a $5 million seawall upgrade. Scully said the seawall works, expected to begin within months, would “soften that edge on the eastern side of the lake.”
The Destination Stage introduces regional attractions, most notably an Olympic-standard skatepark and restoration of the wetland system.
The Growth Stage completes the commercial spine, including the Lake Illawarra Dining House and permanent retail facilities.
The plan broadly aims to address what planners describe as a “disconnection” created by 1980s land reclamation. Scully expressed ambitions for the site’s long-term standing: “It’s a huge site, and it should be one of the great parklands of not only the Illawarra, but of the state.”
You can view the entire masterplan here
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