The state's planning department has supported the proposed commercial offices and pub development on the edge of Monro Park, Cronulla.
Sutherland Shire Council received a positive Gateway Determination, requiring the 2015 Development Control Plan be amended and publicly exhibited with the Planning Proposal.
Following that process, a development application (DA) will need to be lodged and approved by a planning panel.
Earlier this year, Sammut Developments scrapped its original proposal, which included hotel accommodation in a 14-storey tower, and substituted plans for a development with a maximum height of seven storeys.
The revised proposal includes a two storey podium containing food and beverage premises with commercial office uses, including shared co-working space, above.
The Feros Group, which owns The Prince hotel at Kirrawee, Highfield Caringbah and Taren Point Hotel, will operate the hospitality component if the project goes ahead.
While the proposed building heights comply with the present Local Environmental Plan (LEP), the developer sought an increase in gross floor space (FSR) to provide an additional 1281 square metres.
The Department of Planning, Industry and Environment supported the amendment.
A report by council staff said it had been demonstrated the proposal would not overshadow Monro Park more than an FSR compliant proposal.
"Additional height is massed to the west where the shadow falls over the fig tree which already shades the park," the report said.
The report also said the preservation of the trees in Monro Park should should be an important consideration in any assessment.
