The Kressville Activity Centre and 36 independent living units will cost $15 million.

They are part of the first two stages of a development plan approved by Lake Macquarie City Council.

"We are excited to have reached this redevelopment milestone," managing director of Seventh-Day Adventist Aged Care, North NSW, David Knight, said.

"These new facilities for the residents and their families continue the ongoing renewal of a village that has been serving the community since the 1960s."

The activity centre will provide flexible meeting spaces for church services, craft and social activities, and a new hub for the village's in-house television channel.

Residents would use the centre for celebrations such as birthday parties and anniversaries, while people from the extended community would attend information days and other events in the centre, Mr Knight said.

The spacious new independent living units would replace some one-bedroom units that date back to the 1960s, he said.

"Quality care needs to be delivered in quality facilities."