Kiama Mayor Cameron McDonald has gone on the front foot after community backlash to the proposal to build a 14-storey development in the town centre.

Cr McDonald issued a statement on Friday to explain that Kiama Council is opposed to the Level 33 development being allowed to go any higher than the seven storeys that they had approved.

There is potential for that height limit to be doubled by the NSW Government's Housing Delivery Authority and Council, which is engaged in a legal battle with Level 33, will effectively be sidelined from the approval process if the project is declared a State Significant Development by Planning Minister Paul Scully.

"Let me be absolutely clear. As Mayor, I do not support 14-storey buildings anywhere in Kiama. They are far too high and completely out of character for our town," he wrote.

"Council has written to Minister Paul Scully to communicate the community’s concerns — and I encourage residents who share those concerns to do the same. I will be tabling our letter publicly at our next Council meeting.

There are proposals in the pipeline for 14-storey and six-storey developments at either end of Akuna Street as well as a three-storey commercial and residential building to replace the car park on the southern side of the street.

Cr McDonald pointed out that Council is currently involved in a Local Environmental Court case brought by developer Level 33 regarding its Development Application.

"Council is defending its planning controls, which found the DA too high, too bulky, and raised traffic concerns. When summonsed, Council is legally obliged to defend its position. We hope this matter will be resolved soon," he added.

"Separately, Level 33 has asked the NSW Government’s Housing Delivery Authority to declare the site a State Significant Development and permit a 14-storey building. This is a matter for the NSW Government and the Minister, not Council."

Complicating matters is the fact that Council is pushing ahead with a joint project with the State Government to rezone the Shoalhaven Street Precinct, the Council-owned land opposite Kiama Bowling Club, including the Works Depot, which is currently zoned as industrial.

"Council resolved to rezone this land from industrial to residential under our adopted Local Housing Strategy. The NSW Government has now declared the rezoning project State Significant, which Council has welcomed," Cr McDonald wrote.

"No development can occur until rezoning is complete. No DA has been lodged. In simple terms: this is about changing the zoning, not approving any buildings.

"Images shown during the NSW Government’s exhibition are illustrative only. They do not represent approved designs or heights.

"Detailed planning — including building heights, design, traffic, parking and public consultation — will occur later through the normal DA and DCP processes.

"I understand people are anxious as there will be change to that site, so it’s important that the process is clear and that the community is consulted."

Council wants to see a 450-home residential community for the land bordered by Shoalhaven, Barney, Belvedere and Noorinan streets.

The Shoalhaven Street Precinct rezoning proposal is being led by the NSW Department of Planning, Housing and Infrastructure (DPHI) and is on public exhibition until 3 December.

Cr McDonald is encouraging local residents to have their say via www.planningportal.nsw.gov.au.