THE go-ahead has been given for a redevelopment project at Bermagui which will help complete major changes to the town's fishing co-operative.

Bega Valley Shire Council has approved the Bermagui Co-op's plans to redevelop its harbour front site as part of a $3 million move to refocus the organisation on retail and commercial activities after its fishing fleet was downsized in a series of government restructures and buyouts.

Project manager Allan Broadhurst says the co-operative will concentrate on attracting tourists and developing a marina for ocean-going yachts and cruisers.

He says the project has been plagued with problems.

"We have had to downgrade it by roughly a third [because of] a combination of things," he said.

"We didn't get any funding from the State Government as we had hoped.

"Also, when we first put the DA [development application] in there was some complaints raised by the community about the loss of visual amenity as you drive along the main road looking towards the harbour.

"We took away one third of the building, the bit that would actually block off the most view."