The new, modern campus - expected to be operational late next year - would significantly enhance and expand the educational opportunities available to students at a time when Port Stephens businesses were crying out for more skilled staff.

Offering flexible TAFE-level online training courses relevant to the Port Stephens region, the timing was perfect post-COVID, said Port Stephens east ward councillor John Nell.

"We need more training for young and old and I expect that the community will support it," he said.

The CLC was originally earmarked for Nelson Bay in a pre-election promise made by Premier Gladys Berejiklian alongside state Liberal candidate Cr Jaimie Abbott and MLC Catherine Cusack.

However, it was eventually sited on council-owned land at 1 Central Avenue, Salamander Bay, a decision that left many Nelson Bay business owners disgruntled.

Nelson Bay had been rejected due to lack of road access for the mobile training units (MTUs), which are specially designed vehicles fitted-out with training equipment and latest learning technologies with virtual reality and simulation.

"The brand new facility will be built alongside the new shopping precinct in close proximity to public transport, community amenities, local high schools and employers. Expanded course offerings means students can gain job-ready skills without having to travel far from home," Ms Cusack said.

Some of the courses expected to be offered would include hospitality, aged care, childcare and hairdressing, providing opportunities for people to learn, build skills and reap benefits of a TAFE education.

"Importantly, CLCs are designed to empower students to connect into courses and classes from other TAFE NSW campuses."

Tomaree Business Chamber president Leah Anderson said that the centre would provide great opportunities for school leavers and those looking to re-skill locally, "instead of having to travel to Newcastle or Maitland".

Cr Abbott acknowledged the work of the business chamber's Peter Clough, who had been instrumental as an advocate for a higher education campus on the Tomaree peninsula.

State MP Kate Washington had previously accused the government of making "election promises with absolutely no plan to deliver".

"The Premier stood in the CBD and committed to building a TAFE campus in Nelson Bay. Now it's clear we won't be getting a campus and it won't be in Nelson Bay," Ms Washington said.

"Instead, decisions are being made behind closed doors without any transparency or community consultation. People were led to believe this was about delivering local pathways to jobs and revitalising Nelson Bay CBD."

Builders Collaborative Constructions will be undertaking the construction work, which comprises four group learning spaces, makerspace, media lounge, computer hub, learning support room, work booths, collaboration pods, social lounge, kitchenette and tech bar, external learning areas and a MBT bay.

Classes are expected to commence late next year and TAFE NSW will open enrolments in advance of the opening, added Ms Cusack.

"Courses at the Tomaree CLC will be priced in line with other TAFE NSW campuses with the existing fee-free options available. I am advised that about four in every five TAFE NSW students are either subsidised or receive fee-free training."

NSW's Minister for Skills and Tertiary Education, Geoff Lee, said the Bya's CLC will tap into TAFE NSW's statewide network of campuses and work in partnership with the existing TAFE NSW presence - located only a few hundred metres away - to offer a wider range of course offerings.

"Importantly, expanded course offerings means students can gain job-ready skills without having to travel far from home," Mr Lee said.