However, plans to sell community land neighbouring the Gerringong Uniting Church will be further considered.

More than 2900 signatures have been collected on a petition opposing the reclassification of two areas of community land in Gerringong.

Selected parcels of community land in the Kiama municipality have been identified as surplus to the council and community's needs.

The council's revenue subcommittee previously determined a parcel of land on the corner of Fern Street and Willawa Avenue, used for overflow parking for the Gerringong Uniting Church, had the potential for three residential lots.

A piece of land adjoining the western end of Michael Cronin Oval at 60 Blackwood Street, earmarked for residential lots, was also among the parcels identified.

Kiama councillors had endorsed staff's recommendation to start the re-classification/re-zoning process, which will enable the council to publicly exhibit the proposals.

In May, the council resolved to move ahead with plans to sell the community land.

Funds generated from the land sales would support capital works and infrastructure.

Gerringong residents Neil and Alma Macpherson recently launched the petition objecting to plans to reclassify and sell the two parcels of community land.

At last Tuesday night's meeting, councillor Dennis Seage called on council to scrap plans to sell the two areas of land.

"Whether they have been ill-informed, or maybe not quite informed as well as we possibly could have been, I think the majority of people in Gerringong are under the impression that this is our council's dash for cash, and we're trying to turn their beautiful town into a concrete village.

"I've spoken to lots of people in Gerringong, all are incensed by the idea of what this council is perceived to be doing."

Deputy mayor Warren Steel said the council needed to be "entrepreneurial" to keep rates down.

"For many years, we lived off Elambra (Estate)," he said.

"We haven't got Elambra any more, so we've got to look at other sites that are possibilities, and these are only possibilities that we're throwing around."

Councillor Neil Reilly said "entrepreneurial" was an interesting word.

"We need to be proactive, and acting on behalf of the community at all times," Cr Reilly said.

"I think the word entrepreneurial sometimes has connotations of reaching out beyond that to a little bit of avarice, and doing things just because we can.

"They (the community) do not want that land sold in either area ... We might be entrepreneurial, but are we being entrepreneurial against the will of the people?"

Cr Seage said he would be open to suggestions that a section of the land in Willawa Avenue neighbouring the church be considered for sale as long as the view of the church from Fern Street was protected.

He also requested the council's streets and reserves naming committee consider naming what would be a council reserve in front of the church in honour of former Kiama mayor Arthur Campbell, who died in January.

Councillors voted to not sell any part of the Blackwood Street land.

"We're not here to destroy local communities, we're here to make it work as best we can," mayor Brian Petschler said.

"People do sign those petitions with genuine concerns, so let's take all of that into account and see what we come up with."

Mrs Macpherson was pleased with the Blackwood Street decision, but was "bitterly disappointed" regarding the church land.

"This reserve should not be sold off for building blocks. It has always set the tone of a village atmosphere on arriving into the Gerringong township, and it should be enhanced as a reserve so that it can always be enjoyed by visitors and residents alike."