Save Killalea Alliance convenor Peter Moran is "quietly confident" the contentious proposed development of the state park will not proceed.
The Shellharbour councillor's optimism comes after a meeting on Thursday resolved to work towards transferring the park from the NSW Lands portfolio to NSW National Parks.
The Save Killalea Alliance-organised meeting was also attended by the Minister for Land and Property, Melinda Pavey, the Minister for Environment, Matt Kean and Member for Kiama Gareth Ward.
"Minister Kean informed the meeting that he has recently taken the opportunity to visit Killalea and acknowledged the beauty of the area. He also recognised why this park is held so dear by local residents," Cr Moran said.
"Neither he nor Minister Pavey were able to give a firm commitment that the transition would occur or any possible timeline.
"However, the message taken away by committee members was cautiously optimistic that such a transition will occur.
"Another positive aspect of the discussions was that Minister Pavey was able to reassure us that Reflections would not be doing anything significant and irreversible during the current uncertain times.
"Although we are quietly confident, rest assured the committee and the community will remain vigilant until Killalea is properly protected."
In a statement Mr Ward said that earlier this year he had written to both Ministers arguing that in order to protect this asset in perpetuity, Killalea should be moved from Reflections Holiday Parks to NSW National Parks.
"I have also spoken with the traditional owners who are keen to secure the long-term future of the site to preserve the cultural heritage and significance for Aboriginal people," Mr Ward said.
"At the meeting, both Ministers agreed to work with me to pursue the transfer of the park from the NSW Lands portfolio to NSW National Parks.
"This park is very much the lungs of the southern Illawarra. It has enormous environmental, cultural and tourism significance.
"As part of further discussions with the NSW government, I will be seeking to ensure that any future model involves greater community input to ensure interests groups and stakeholders have their views heard and respected.
"This includes further improvements to the park such as the campsite and investments that provide greater access for people with disabilities.
"I thank the NSW government for their in-principle agreement to transfer the site and I look forward to working with the government to provide greater certainty for the future of this unique and stunning local asset."
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