The State Government has rejected the Shellharbour Mayor's proposal to develop Killalea State Park.
However, the state is prepared to negotiate if David Hamilton makes one significant change to his plan.
The Mayor is proposing Shellharbour Council take control of Killalea State Park and the planned tourism resort be scrapped in favour of a smaller development.
Under the Mayor's plan the State Government would pay Shellharbour Council two million dollars to take control of Killalea.
In addition, Wollongong, Shellharbour and Kiama ratepayers would be slapped with a levy to maintain the park.
The State Government says it'll only consider the plan if the Mayor withdraws his demand for two million dollars.
The Mayor's proposal could also have legal ramifications.
Earlier this year the State Government signed an agreement to lease three parcels of the park for a private tourism resort with more than two hundred cabins.
The Mayor was unavailable for comment on the State Government's response to his proposal.
WinTV - 12 September 2007
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