An Extraordinary Meeting of Kiama Council has approved the DA for the redevelopment of the Gerringong Co-Op into a hospitality venue.

As the DA was originally deferred at the March Meeting of Council due to concerns for the amenity of neighbours, a recission motion had to be carried first before the matter could be considered again.

The Mayor Neil Reilly reminded councillors that the decision needed to be based on planning reasons, not community sentiment or any urgency placed on the matter by a $2.4 million employment generation grant requiring an approved DA.

While councillors pointed out that the DA had previously been deferred, not knocked back, the Mayor confirmed that a deferral on a long standing DA was regarded as a deemed refusal.

Councillors Renkema-Lang, Rice and Keast argued strongly for the need to take more notice of the impact on neighbours, given the activity was only allowed on B7 land because of its heritage status.

The final motion, which was approved 8:1 (Renkema-Lang against) included additional conditions acknowledging community concerns about parking and traffic during the development and operation of the site, and committed to Council making an investigation of parking and management a year after the site opens for business.

It also added extra emphasis on the need to minimise environmental fumes and odours, particularly from the smokehouse.

Work is expected to start as soon as possible.

"Once we have all the documentation in place, we'll be straight onto it," says one of the owners, Mel Matters of The Hill Bar & Grill.

"Let's hope Stage 1 (the big room at the north of the building) is open for Christmas!"