Redevelopment plans have been drawn up for Frank Vickery Village at Sylvania.
Wesley Mission, which operates the independent retirement living and aged care facility, proposes to submit a Planning Proposal to Sutherland Shire Council to change the zoning "to permit higher buildings which follow the natural topography of the site".
"A focus on retaining current vegetation and trees on site will complement the buildings with green space," a statement to residents said.
"New buildings will 'cascade' to follow the site topography with higher buildings in the middle of the site and lower buildings towards the site boundary to remain in character with the surrounding landscape."
At present, the 5.7 hectare site, 101-151 Port Hacking Road, is zoned for low density housing.
The village, which opened in 1948 as the Sylvania Aged Couples Settlement, accommodates 220 residents in a range of studio, one and two bedroom apartments and has a 69-bed residential aged care facility.
The statement said the proposed changes were designed "to better serve the needs of these important people within our community".
"With Sutherland Shire home to the fifth highest ageing population in NSW, there is significant demand for quality, desirable, future-focused retirement and aged care facilities, particularly those that are co-located to provide an easy transition to ageing-in-place care.
"Forecasting future demand is a key part of the development process and in 2019 Wesley Mission undertook a supply and demand assessment.
"The study further reinforced the growing ageing population and the need for aged care services, and demonstrates the lack of competitors for an 'integrated' village (i.e. combining seniors living and aged care) in the Sutherland Shire.
"As Frank Vickery Village occupies one of the largest development sites in the local area, Wesley Mission is committed to ensuring the site's potential is maximised to support the projected aged care population growth allowing seniors to stay in the area they love."
The statement said the preferred masterplan "celebrates the site's heritage, character and green space making it a place for locals to visit and enjoy while creating a safe environment for residents".
Proposed facilities include a cafe "to further encourage social interaction between residents and visitors". Other possible facilities and services include a post office, convenience store, gym, wellbeing and consulting rooms (doctor, massage, physio, podiatry, chiro), hair salon, club room / BBQ area, greenhouse and men's shed