Ron Medich's 2.9-acre Beachlands property at 16 Crooked River Road, Gerroa, is set to be auctioned after the property tycoon paid $2.19 million for it in 2007.

Dick Payne First National Real Estate director Jason Stalgis said he had been inundated with calls for a property he described as rare, both in its proximity to the ocean and its size.

"We tend to get properties either one acre or 50-100 acres, so to get one of its size is rare."

The land was subject to a feud between business partners Medich and Michael McGurk. Following McGurk's murder in September 2009, the Independent Commission Against Corruption investigated a recording McGurk made containing claims Medich could bribe Director-General of Planning Sam Haddad for favourable treatment on a development consent for the property.

However, the commission ruled the allegations were "nonsense" - the two individuals had never met and no money had exchanged hands.

Investigations found no development application had been submitted.

Kiama Municpial Council general manager Michael Forsyth said the council had not been investigated during the inquiry.

The council sold the property to Palladian Pacific Pty Ltd in 2002 for $1.12 million after the old homestead mysteriously burned down in 2001.

Then-minister assisting the Minister for Infrastructure and Planning, Diane Beamer, issued consent for a tourist facility in 2005.

The consent allowed for 10 two-bedroom, self-contained cabins and a separate building containing a dual purpose gallery and function room, and a licensed cafe. However, it has now lapsed.

The land is currently zoned E3, which allows for bed and breakfast accommodation, extensive agriculture, farm stay accommodation and cellar door premises.

It is listed for auction on July 6.

Former boxer Lucky Gattellari was sentenced to 7½ years jail without parole in May for being an accessory before the fact in McGurk's murder.

Medich is accused of arranging the hit and is due to face a preliminary hearing in August.