A DEVELOPMENT application has been lodged with Wollongong City Council to demolish the Shells Diner, on Lawrence Hargrave Drive, Austinmer.

Under the proposal, the current single storey eatery, opposite Austinmer Beach, will be replaced with a three storey residential and retail building.

If approved the application would see a retail/business component at the ground level, with two levels of residential above, with onsite parking.

To view the proposal visit Wollongong Council website, and click on development applications on exhibition.