TWO Nelson Bay sites have been identified as temporary car parks while the Donald Street parking station remains shut.
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Vacant parcels of land on both Donald Street and Government Road will be developed into car parks and are projected to provide 125 spaces.
This would be an increase of 11 spaces from the now-closed 114-space multi-storey car park.
The Examiner reported last month that the Donald Street car park would be shut down because of structural problems.
Port Stephens Council endorsed leases for the privately-owned sites at Tuesday's meeting.
One parcel of land is on Government Road near the police station. The other is opposite the multi-storey car park.
The lease agreements will cost ratepayers $72,000 per year plus goods and services tax.
According to council documents the lease term would be three years, suggesting the problem building may not be redeveloped for some time.
The car park closure came within days of Coles Nelson Bay closing up shop, leaving many small business owners worried about decreased spending in the CBD.