The announcement by GPT that the $ 311 million shopping centre extension west of the Mall will be postponed for at least two years has all the implications of disaster for Wollongong.
Work was expected to commence in the next few weeks and Bing Lee - the last tenant - is in the process of moving out.
It will be unlikely that new tenants will be interested in vacant shops given that there is a chance the project will be resurrected - and the current world financial crisis is not encouraging an increase in retail spending.
It is likely that this vast area of empty shops will attract graffiti, the homeless and quickly become an eyesore. It will do nothing to increase patronage of the already dated and tired Mall.
There are other aspects that will worry business owners. At the other end of Crown street Belmorgan is waiting to finalise a court case before proceeding with the $ 350 million " Gravity " project.
If this proceeds it is almost certain that the GPT project will be further delayed - or cancelled. There does not seem to be room for two projects of shopping centre extensions to coexist in central Wollongong.
There is also the chance that the same constraints that are delaying GPT may have "Gravity" put on hold, and if that happens then the Mall will come under pressure from expansions in the northern suburbs.
Belmorgan's " Ambience " in Fairy Meadow is nearing completion and there are plans for a $ 95 million major shopping precinct on vacant land in Corrimal. Both of these will have the attraction of free parking - and will draw custom away from the existing Wollongong Central with it's tired image and accessibility problems.
The GPT delay will deliver the worst possible outcome for Wollongong. Not only will a rejuvenation of the central shopping area not happen, but the city will be stuck with a whole block of abandoned shops falling into disrepair - and this was to be the pivot point for bringing the decaying western area of Crown street back to life.
The delay will provide the incentive for expansion plans at Shellharbour, Fairy Meadow and Corrimal to proceed, further sucking the life out of Wollongong Central as a place to shop.
For Wollongong council - another giant headache because the developer contribution to civic amenities will not happen - and with it the finance necessary to bring this city up to date.
Perhaps the harbinger of further bad tidings for the citizens of this city !
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