Last week, Shellharbour council general manager Brian Weir announced developers Australand had indefinitely delayed construction of the $150 million marina due to the downturn in the residential market.

Mr Brown, whose Kiama electorate takes in the Shell Cove subdivision, said he was "really concerned" with the delay.

"Many families have bought property in the area believing a marina will be built," he said.

"Their expectations are legitimate.

"(Shell Cove) has been a vision since the '80s and Lylea and I want to see that vision realised."

Mr Brown defended Mr Weir's role in the development.

Mr Weir receives a separate salary of $30,000 for overseeing the Shell Cove project.

"From what I understand his relationship with Australand is not the reason for the delay," Mr Brown said.

Ms McMahon said she had concerns over what impact the delay would have on the financial viability of Shellharbour council.

She said Mr Weir's relationship with Australand was one of the issues raised in the public inquiry.

Shellharbour council's administrator David Jesson has recommended that Kleem Consulting be engaged to prepare a performance agreement between the council and Mr Weir.