proposed business 3 rezoning, bacchus marsh road, corio
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389 St Georges Road NORTH FITZROY VIC 3068
Phone (03) 9482 3888 | Fax (03) 9482 3933
www.urbanenterprise.com.au
Proposed Business 3 Rezoning,
Bacchus Marsh Road, Corio
Economic and Strategic Assessment
CITY OF GREATER GEELONG
MAY 2012
AuthorsAuthorsAuthorsAuthors
Paul Shipp
Jon Power
Shashi Karunanethy
Reviewed byReviewed byReviewed byReviewed by
Matt Ainsaar
© Copyright, Urban Enterprise Pty Ltd, May 2012.
This work is copyright. Apart from any use as permitted under Copyright Act 1963, no part may be reproduced without written permission of Urban Enterprise Pty Ltd.
Document InformationDocument InformationDocument InformationDocument Information
Filename: Corio Norlane Assessment Report Draft v1.3 PS 20120503
Last Saved: 4 May 2012 10:28 AM
Last Printed: 4 May 2012 10:31 AM
File Size: 4998 kb
DisclaimerDisclaimerDisclaimerDisclaimer
Neither Urban Enterprise Pty. Ltd. nor any member or employee of Urban Enterprise Pty. Ltd. takes responsibility in any way whatsoever to any person or organisation (other than that for which this report has been prepared) in respect of the information set out in this report, including any errors or omissions therein. In the course of our preparation of this report, projections have been prepared on the basis of assumptions and methodology which have been described in the report. It is possible that some of the assumptions underlying the projections may change. Nevertheless, the professional judgement of the members and employees of Urban Enterprise Pty. Ltd. have been applied in making these assumptions, such that they constitute an understandable basis for estimates and projections. Beyond this, to the extent that the assumptions do not materialise, the estimates and projections of achievable results may vary.
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT City of Greater Geelong
Urban Enterprise Pty LtdMAY 2012
CONTENTS
SUMMARY III
STATUTORY CONTEXT III
STRATEGIC CONTEXT III
ECONOMIC ASSESSMENT IV
SUBMISSIONS IV
1. INTRODUCTION 6
1.1. BACKGROUND 6
1.2. SITE CONTEXT 7
1.3. THE MASTERS PROPOSAL 8
2. STATUTORY CONTEXT 9
2.1. INTRODUCTION 9
2.2. BUSINESS 3 ZONE 9
2.3. BUSINESS 4 ZONE 10
2.4. PROPOSED ZONING STRATEGY 11
3. STRATEGIC CONTEXT 12
3.1. STATE PLANNING POLICY 12
3.2. CITY OF GREATER GEELONG MUNICIPAL STRATEGIC STATEMENT (MSS) 13
3.3. OTHER LOCAL PLANNING POLICY 15
3.4. CORIO NORLANE DRAFT STRUCTURE PLAN 16
3.5. CITY OF GREATER GEELONG RETAIL STRATEGY, 2006 17
3.6. PLANNING SCHEME AMENDMENT REVIEW 20
3.7. WOOLWORTH’S ‘OXYGEN’ ADVISORY COMMITTEE 21
3.8. SUMMARY 22
4. PEER REVIEW: NEED AND ECONOMIC ASSESSMENT 24
4.1. INTRODUCTION 24
4.2. DEVELOPMENT PROPOSAL 24
4.3. CATCHMENT AREA 25
4.4. EXISTING RETAIL SUPPLY 26
4.5. POPULATION 26
4.6. EXPENDITURE CATEGORIES 26
4.7. EXPENDITURE LEVELS OF CATCHMENT AREA 27
4.8. EXPENDITURE CAPTURE 28
4.9. MARKET SHARE 28
4.10. SALES FORECASTS AND TURNOVER RATES 29
4.11. SALES IMPACT ON COMPETING BULKY GOOD PROVIDERS 30
4.12. ECONOMIC BENEFITS (EMPLOYMENT) 30
4.13. NET COMMUNITY BENEFITS 31
4.14. SEQUENTIAL TESTING 31
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT City of Greater Geelong
Urban Enterprise Pty LtdMAY 2012
4.15. GEELONG RING ROAD EMPLOYMENT PRECINCT 32
4.16. KEY FINDINGS 32
5. ANALYSIS OF SUBMISSIONS 34
5.1. FAGG BROS PTY LTD SUBMISSION TO THE DRAFT CORIO NORLANE STRUCTURE PLAN 34
5.2. URBIS SUBMISSION TO THE DRAFT CORIO NORLANE STRUCTURE PLAN 38
FIGURES
FIGURE 1 DRAFT CORIO NORLANE STRUCTURE PLAN – ABATTOIR AND SURROUNDS CONCEPT PLAN 6
FIGURE 2 SITE CONTEXT PLAN 7
FIGURE 3 CITY OF GREATER GEELONG MSS, CLAUSE 21.07-08, RETAIL CENTRES HIERARCHY 15
FIGURE 4 DEVELOPMENT PROPOSAL 24
FIGURE 5 CATCHMENT AREAS 25
TABLES
TABLE 1 PERMITTED USES: BUSINESS 3 ZONE AND BUSINESS 4 ZONE 10
TABLE 2 SUMMARY REVIEW OF RELEVANT PLANNING SCHEME AMENDMENTS 21
TABLE 3 MARKET, EXPENDITURE CATEGORIES AND ITEMS 26
TABLE 4 MARKET SHARE OF MASTERS STORE, BY SALES 28
TABLE 5 SALES FORECASTS AND TURNOVER RATES, 2013/14 29
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT City of Greater Geelong
Urban Enterprise Pty LtdMAY 2012
SUMMARY
SSSSTATUTORY TATUTORY TATUTORY TATUTORY CCCCONTEXTONTEXTONTEXTONTEXT
The need to rezone the subject site from Residential 1 Zoned to a more suitable land use is considered
appropriate. R1Z is not compatible with the existing MC Herd Abattoir and rezoning the site will facilitate the
development of a key gateway site which provides a buffer between the abattoir and sensitive uses to the
east.
It is considered that the proposed B3Z allocation would be an adequate strategy in bringing forward office,
business and restricted retail uses for both the Masters site and the proposed business park.
SSSSTRATEGIC TRATEGIC TRATEGIC TRATEGIC CCCCONTEXTONTEXTONTEXTONTEXT
The State and local planning policy frameworks provide extensive guidance on bulky goods retail and
commercial business development, out-of-centre proposals and the mechanisms for assessing proposals
for such developments. The following common themes provide a high level summary the policy basis
against which the proposal should be measured:
• Ensuring the economic well-being of communities by supporting and fostering economic
growth and development by providing land, facilitating decisions, and resolving land use
conflicts;
• Encouraging development which meets the communities’ needs for retail, entertainment,
office and other commercial services and provides a net community benefit;
• Where possible, positioning new retail and commercial development within or on the edge of
activity centres identified within the existing Activity Centres Hierarchy;
• Where development within or surrounding existing activity centres is not possible, and is
demonstrated via a sequential test, ensure that assessment criteria for new centres or out-
of-centre developments are met; which demonstrate:
• That there is identifiable retail demand for the proposal;
• The existing retail supply;
• Significant escape spending which can be captured;
• That there is no adverse impact on the existing retail hierarchy; and
• That the proposal demonstrates a ‘net community benefit’.
• Homemaker and bulky goods retailing is acknowledged within the policy framework as a use
that is extremely difficult to locate within or around existing activity centres; due to issues
associated with size, scale and vehicular access. Future development in out-of-centre and
or new centres is not precluded where it can be demonstrated that proposals satisfy the
above retail assessment criteria.
It is considered that the Masters proposal would not be contrary to the strategic framework, including the
MSS and Geelong Retail Strategy, if it can be demonstrated that the proposal meets the sequential site
selection test and the assessment criteria outlined above.
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT City of Greater Geelong
Urban Enterprise Pty LtdMAY 2012
Similarly, the development of an office/business park on the southern section of the site is supported by
policy which encourages development which meets the community’s need for office and other commercial
services.
EEEECONOMIC CONOMIC CONOMIC CONOMIC AAAASSESSMENTSSESSMENTSSESSMENTSSESSMENT
The Deep End report provides a detailed and comprehensive economic assessment of the Masters and
ancillary bulky goods proposal.
The major supporting assumptions underpinning the report, including catchment area, population levels,
expenditure categories and existing retail supply have been checked and verified.
Some aspects of the detailed retail assessment methodology include limitations and sources that could not
be verified. However on balance it is considered that the retail assessment demonstrates that there is a
substantial market for the bulky goods retail floorspace proposed. This is based on a high-level review of the
methodology only – more detailed analysis would need to be undertaken if a full review or alternative
assessment is required.
The calculations of economic impact on existing retailers are based on Deep End’s own estimates. As
such, the assumptions underpinning the calculations are difficult to assess. It is considered that the impact
on existing retailers may be greater (but not significantly greater) than the figures shown in the report.
However, this cannot be quantified without a full review. It is considered that the average sales impact on
competing bulky good retailers is likely to exceed -6%, given that the Masters store will increase the existing
catchment area competing floorspace by approximately 17%.
The change in impact as a result of increasing the competing floorspace in the Corio Village Shopping
Centre cannot be known without recalculation the Deep End model, however it is considered that the overall
impact on the Shopping Centre may be slightly higher than the -7% as shown in the report.
The discussion of net community benefit and sequential testing briefly address the key requirements of the
planning scheme, but would benefit from greater detail and evidence, particularly given that one of the
Advisory Committee’s key grounds for rejecting a previous Oxygen proposal was that as an out of centre
development, the sequential test had not been satisfied through economic evidence.
On balance, the economic assessment prepared by Deep End appears to meets the requirements of the
Planning Scheme and provides sufficient evidence that the proposal is viable and will not generate an
adverse impact on the existing retail hierarchy (subject to the qualifications as discussed above).
It should also be acknowledged that the construction of facilities and infrastructure within the GREP over the
short term, and the occupation and visitation of these businesses over the medium and long term, will
generate significant demand for hardware, trade supplies and bulky goods in the local area.
In addition, there is likely to be significant demand generated for supporting businesses which will require
office and showroom type facilities in the vicinity of the GREP. Given the lack of available land in the
business zones in the local area, and the lack of available floorspace or expansion opportunity within the
Corio Village Shopping Centre, it is considered that the subject site provides an ideal location for office and
ancillary business development to support the development of the GREP. This is supported by Clause 17 of
the SPPF, which states that the sale of trade-related goods is supported where are “directly serving or
ancillary to industry and which have adequate on-site car parking”.
SSSSUBMISSIUBMISSIUBMISSIUBMISSIONSONSONSONS
Submissions by Fagg and Urbis (on behalf of Masters) were reviewed and assessed in detail.
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT City of Greater Geelong
Urban Enterprise Pty LtdMAY 2012
The Fagg submission raises a number of issues which largely contend that the proposal to rezone the
subject land is contrary to local policy. The submission selectively references a number of policies,
strategies and previous panel reports.
The main issues can be summarised as follows:
1. There is a lack of reference to the Geelong Retail Strategy in the Structure Plan.
2. There is no comment or analysis on the rezoning to B4Z of the future Bunnings Norlane
Store (located at 1-3 and 5-9 Princes Highway to the southern extent of the Structure
Plan area); which previously had received a planning permit on Industrial 2 Zoned land.
3. The rezoning of the Geelong Gate Homemaker Precinct to Business Zone 4 is not
discussed in the Plan.
Our assessment of the State and Local Planning Policy Frameworks (as outlined in the following sections)
indicates that the Masters proposal is generally in accordance with the Greater Geelong Planning Scheme.
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT CITY OF GREATER GEELONG
6 URBAN ENTERPRISE PTY LTDMAY 2012
1. INTRODUCTION
1.1.1.1.1.1.1.1. BBBBACKGROUNDACKGROUNDACKGROUNDACKGROUND
Urban Enterprise has been commissioned by the City of Greater Geelong to undertake an
economic and strategic assessment of land at the corner of Bacchus Marsh Road and the
Geelong Ring Road which is proposed by the Corio Norlane Structure Plan (draft) to be rezoned
to the Business 3 Zone. This includes a high level peer review of an Economic Impact
Assessment to support a new Homemaker Store at the site.
The Draft Structure Plan proposes to rezone part of the existing Residential 1 Zone to the
Business 3 Zone. The northern section of the site is proposed to accommodate a Masters Home
Improvement Store, with a business park and office uses proposed for the remainder of the area.
The area subject to rezoning to Business 3 Zone is illustrated below in Figure 1.
FIGURE 1 DRAFT CORIO NORLANE STRUCTURE PLAN – ABATTOIR AND SURROUNDS CONCEPT
PLAN
Source: The Draft Corio Norlane Structure Plan (2011)
This report will provide:
• A assessment of existing and proposed statutory zoning controls for the site and analysis of
their effectiveness and appropriateness;
• A review and analysis of the strategic policy framework, including:
• State Planning Policy (Clause 11: Settlement and Clause 17: Economic
Development);
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT CITY OF GREATER GEELONG
7 URBAN ENTERPRISE PTY LTDMAY 2012
• City of Greater Geelong Municipal Planning Scheme (MSS) and local planning policy
(particularly Clause 22, Retail Proposal Assessment);
• Corio Norlane Draft Structure Plan and Background Report (2011);
• City of Greater Geelong Municipal Retail Assessment (2006);
• City of Greater Geelong Industrial Land Study (2001);
• City of Greater Geelong Planning Scheme Amendment Panel Reports: Amendment
C98, C166 and C187;
• City of Greater Geelong Planning Scheme Amendment Explanatory Report:
Amendment C253; and
• Woolworth’s ‘Oxygen’ [re-branded Masters] Advisory Committee Report to the
Planning Minister.
• A high level peer review of the Economic Impact Assessment prepared by Deep End
Service Pty Ltd, which has accompanied a Planning Permit application and concurrent
Planning Scheme Amendment proposal by Masters to support a home improvement store
on the site; and
• An assessment and critical response to key issues raised in submissions to the Draft Corio
Norlane Structure Plan made by Urbis and Fagg Bros Pty Ltd.
1.2.1.2.1.2.1.2. SSSSITE ITE ITE ITE CCCCONTEXTONTEXTONTEXTONTEXT
The subject site is situated in Corio, approximately 10km to the north of Geelong City Centre. The
site is bounded to the north by the Geelong Ring Road and to the east by Bacchus Marsh Road.
Both the subject site and land to the south and east are currently within the Residential 1 Zone
(“R1Z”). The southern section of the site is proposed to include a business park and has also
received approval for an 82 lot residential subdivision.
FIGURE 2 SITE CONTEXT PLAN
R1Z
R1Z
Subject site and location of B3Z rezoning proposal Proposed Masters Site
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT CITY OF GREATER GEELONG
8 URBAN ENTERPRISE PTY LTDMAY 2012
Source: City of Greater Geelong Planning Scheme – annotated by Urban Enterprise (For Illustrative Purposes Only, 2012)
Immediately to the east of the subject site, on the adjoining boundary of Bacchus Marsh Road, is
the MC Herd Abattoir. The abattoir is a major employment generator in Corio and constrains the
use of the subject site for residential development due to potential amenity impacts within the
buffer zone restricting sensitive uses.
To the north of the subject site, beyond the Geelong Ring Road, is the proposed Geelong Ring
Road Employment Precinct. Directly to the south and east are standard density residential
subdivisions.
1.3.1.3.1.3.1.3. TTTTHE HE HE HE MMMMASTERS ASTERS ASTERS ASTERS PPPPROPOSALROPOSALROPOSALROPOSAL
Masters wish to obtain planning approval for the development of 18,471m2 of gross floor area on
the subject site, including a 13,701m2 Masters Store and 4,770m2 of other restricted retail
tenancies. The proposed land uses of the Masters Store are disaggregated as follows:
• 2,326m2 of Trade Supplies;
• 8,336m2 of Restricted Retail (including 160 m
2 Food and Drink Premises comprising an on
site café for customers and staff);
• 2,223m2 Garden Centre; and
• 816m2 Receiving Area.
Additional restricted retail tenancies will include four tenancies, ranging between 1,120m2 and
1,400m2.
The Masters proposal is subject to a planning permit application and amendment request under
Section 96A of the Planning and Environment Act. It seeks to align the subject site with the
rezoning proposals in the Draft Corio Norlane Structure Plan and the strategic aims of the City of
Greater Geelong. The amendment request comprises the following three components:
• The rezoning of the Masters subject site to Business 3 Zone (“B3Z”);
• Removal of Design and Development Overlay 14 (relating to residential development) from
the subject site; and
• Amending the Retial Activity Centres Hierarchy in Clause 21.07-8 of the City of Greater
Geelong Planning Scheme, to include the subject site as a Homemaker Precinct.
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT CITY OF GREATER GEELONG
9 URBAN ENTERPRISE PTY LTDMAY 2012
2. STATUTORY CONTEXT
2.1.2.1.2.1.2.1. IIIINTRODUCTIONNTRODUCTIONNTRODUCTIONNTRODUCTION
The subject site is currently within the Residential 1 Zone as part of the City of Greater Geelong
Planning Scheme. The proximity of the MC Herd Abattoir to the subject site currently precludes
residential use on the majority of the site.
This section provide a summary of the rezoning options, considering the strategic location of the
site, the existing Planning Scheme Amendment proposal and the recommendation in the draft
Structure Plan to introduce the Business 3 Zone.
2.2.2.2.2.2.2.2. BBBBUSINESS USINESS USINESS USINESS 3333 ZZZZONEONEONEONE
The Draft Corio Norlane Structure Plan proposed to rezone the subject site to B3Z (as illustrated
in Figure 3). B3Z seeks to “…implement the State Planning Policy Framework and the Local
Planning Policy Framework, including the Municipal Strategic Statement and local planning
policies……to encourage the integrated development of offices and manufacturing industries and
associated commercial and industrial uses…”
Under B3Z, uses that do not require a permit include a range of industry office and warehouse
uses. Uses that are permissible with a planning permit include ‘Restricted Retail Premises’ and
‘Retail Premises (other than postal agency and shop)’ and ‘Convenience Shops’.
2.2.1. ‘RESTRICTED RETAIL’
On 20th January 2012, Planning Scheme Amendment VC88 came into effect, amending the VPP
definition of ‘Restricted Retail Premises’ and removing floor space thresholds within the zoning
controls.
Amendment VC88 expanded the definition of restricted retail premises to include:
• Outdoor and recreation goods (in addition to camping equipment);
• All animal supplies (in addition to equestrian and pet supplies)
• Baby and children’s goods, children’s play equipment and accessories; and
• Sporting cycling, leisure, fitness goods and accessories.
Furthermore, the amendment includes a broader new definition which allows two new categories
for other types of bulky goods premises; including:
• Those requiring a large area for handling, display and storage of goods; and
• Those requiring direct vehicle access to the building by customers, for the purpose of
loading or unloading goods into or from their vehicles after purchase or hire.
The changes provide the scope for a wide range of large or physically bulky goods to be sold
under the amended definition of restricted retail premises. However, in B3Z, the requirement to
obtain a permit for these uses remains in place.
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT CITY OF GREATER GEELONG
10 URBAN ENTERPRISE PTY LTDMAY 2012
In addition, minimum floorspace requirements (of 1,000m2 per tenancy) have now been removed
in B3Z (Clause 34.03); allowing smaller retail premises to be permissible.
2.3.2.3.2.3.2.3. BBBBUSINESS USINESS USINESS USINESS 4444 ZZZZONEONEONEONE
Business 4 Zone (“B4Z”) is commonly used as the zoning mechanism to facilitate the
development of new bulky goods retail premises. B4Z seeks to “…encourage the development of
a mix of bulky goods retailing and manufacturing industry and their associated business
services…”
Within B4Z, Restricted Retail Premises, Trade Supplies and Warehouses are identified as
permissible uses that do not require a permit.
A direct comparison of the uses permitted within Business Zones 3 and 4 are summarised in
Table 1.
TABLE 1 PERMITTED USES: BUSINESS 3 ZONE AND BUSINESS 4 ZONE
Business 3 ZoneBusiness 3 ZoneBusiness 3 ZoneBusiness 3 Zone Business 4 ZoneBusiness 4 ZoneBusiness 4 ZoneBusiness 4 Zone
PurposePurposePurposePurpose To encourage the integrated
development of offices and
manufacturing industries and
associated commercial and industrial
uses.
To encourage the development of a mix of
bulky goods retailing and manufacturing
industry and their associated business
services.
Permitted Uses (Permit Permitted Uses (Permit Permitted Uses (Permit Permitted Uses (Permit
notnotnotnot Required)Required)Required)Required)
� Industry (other than Materials
recycling and Transfer station)
� Informal outdoor recreation
� Mail centre
� Minor utility installation
� Office.
� Postal agency
� Railway
� Tramway
� Warehouse (other than Mail centre
and Shipping container storage)
� Electoral office
� Industry (other than Materials recycling and
Transfer station)
� Informal outdoor recreation
� Mail centre
� Minor utility installation
� Railway
� Restricted retail premises
� Service station
� Trade supplies
� Tramway
� Warehouse (other than Mail centre and
Shipping container storage)
Permitted Uses (Permit Permitted Uses (Permit Permitted Uses (Permit Permitted Uses (Permit
Required)Required)Required)Required)
� Adult sex bookshop
� Agriculture
� Caretaker's house
� Convenience shop
� Education centre
� Leisure and recreation
� Materials recycling
� Place of assembly
� Restricted retail premises
� Retail premises (other than Postal
agency and Shop)
� Shipping container storage
� Transfer station land
� Utility installation
� Adult sex bookshop
� Agriculture
� Caretaker's house
� Convenience shop
� Education centre
� Leisure and recreation
� Materials recycling
� Motel
� Office (other than Electoral office)
� Place of assembly
� Retail premises (other than Shop and Trade
supplies)
� Shipping container storage
� Transfer station
� Utility installation
Source: Greater Geelong Planning Scheme, Urban Enterprise
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT CITY OF GREATER GEELONG
11 URBAN ENTERPRISE PTY LTDMAY 2012
2.4.2.4.2.4.2.4. PPPPROPOSED ROPOSED ROPOSED ROPOSED ZZZZONING ONING ONING ONING SSSSTRATTRATTRATTRATEGY EGY EGY EGY
2.4.1. THE NEED FOR REZONING
The need to rezone the subject site from Residential 1 Zoned land to a more suitable designation
is being driven by the proximity of the MC Herd Abattoir and the requirement for a 500m buffer for
sensitive land uses. The unsuitability of the site for residential uses was considered in a VCAT
Subdivision Hearing (P3570/2010) for 240 Bacchus Marsh Rd, where Tribunal recognised that
retaining land opposite to abattoir as R1Z would be an “…unsatisfactory planning outcome…” and
therefore considered it appropriate to undertake a strategic review of the site.
The abattoir is a major employer and contributor to the economy in Corio, which is supported in
the Corio the Corio Norlane Draft Structure Plan, which seeks to “…Support the continued
operation of major employment sites such as the M.C. Herd Abattoir…” [P.11]. It would therefore
not align with the City of Greater Geelong’s strategic objectives to cease or alter the primary
operations of the abattoir and it is not considered that this will occur in the foreseeable future.
It is considered appropriate to rezone the subject site from R1Z to a more suitable land use that
facilitates the development of an important strategic gateway site and provides a buffer between
the abattoir and sensitive uses such as residential dwellings to the east.
2.4.2. SUITABILITY OF BUSINESS 3 ZONE
Applying a B3Z to both the Masters subject site and the remainder of the B3Z allocation (which is
proposed for business park uses), as proposed in the Draft Structure Plan, will allow development
of a wide range of light industrial, business and commercial uses.
The Business 3 Zone is the appropriate zone to facilitate development in the southern section of
the site for office/business park uses as proposed in the Structure Plan. These would be
permissible uses that do not require a planning permit.
The proposed Masters store and ancillary restricted retail premises, which are proposed for the
northern section of the site, are permit required uses which align with the definition of ‘Restricted
Retail Premises’.
It is considered that Business 3 Zone would be an appropriate zoning mechanism to allow the
Masters proposal alongside office and business uses on the southern parcel of the land.
However, if Council were to consider an alternative zoning strategy, the application of Business 4
Zone to the subject site would better reflect Council’s strategic objectives to bring forward the site
for restricted retail development. B4Z is the most appropriate zoning mechanism to facilitate
homemaker and bulky goods retail and has been acknowledged by the Woolworth’s ‘Oxygen’ [re-
branded Masters] Advisory Committee as “…the most appropriate zone for the use and
development proposed for an Oxygen store…” [Oxygen Advisory Committee Report, 2010, P.24].
In summary, it is considered that the proposed Business 3 Zone is an appropriate zone to
facilitate office, business and restricted retail uses. However, rezoning the proposed Masters
(northern) parcel to B4Z could clearly and transparently articulate Council’s strategic objectives
for the site.
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT CITY OF GREATER GEELONG
12 URBAN ENTERPRISE PTY LTDMAY 2012
3. STRATEGIC CONTEXT
This section sets out the strategic framework which underpins the development of new retail,
commercial and industrial facilities at state, regional and local level. It provides an analysis of the
key policy objectives and mechanisms used to govern new retail and business development, and
illustrates how the rezoning proposal would fit within the wider policy framework.
3.1.3.1.3.1.3.1. SSSSTATE TATE TATE TATE PPPPLANNING LANNING LANNING LANNING PPPPOLICYOLICYOLICYOLICY
The State Planning Policy Framework (“SPPF”) seeks to ensure that overarching objectives in
Victoria are adopted via local planning policy and planning mechanisms. The SPPF aims to
promote a settlement policy that will “…anticipate and respond to the needs of existing and future
communities through provision of zoned and serviced land for housing, employment, recreation
and open space, commercial and community facilities and infrastructure…”
Key areas of the SPPF which are of relevance to the subject site are identified below:
3.1.1. CLAUSE 11: SETTLEMENT
11.01 ACTIVITY CENTRES
State policy on activity centres seeks to develop a network of centres that are “…a focus for
business, shopping, working, leisure and community facilities…” Policy encourages the
concentration of major retail, residential, commercial, administrative, entertainment and cultural
developments into or on the edge of existing activity centres.
11.02 URBAN GROWTH, THE SUPPLY OF URBAN LAND
Policy on urban growth plans to ensure that a sufficient supply of land is available for residential,
commercial, retail, industrial, recreational, institutional and other community uses. To achieve
this, authorities must:
• Ensure the ongoing provision of land and supporting infrastructure to support sustainable
urban development.
• Ensure that sufficient land is available to meet forecast demand.
3.1.2. CLAUSE 17: ECONOMIC DEVELOPMENT
State policy governing economic development aspires to promote the economic well-being of
communities by supporting and fostering economic growth and development; by providing land,
facilitating decisions and resolving land use conflicts, so that each district may build on its
strengths and achieve its economic potential.
17.01-1 COMMERCIAL: BUSINESS
In respect of commercial business uses, the SPPF encourages development which meets
communities’ needs for retail, entertainment, office and other commercial services and provides
‘net community benefit’ in relation to accessibility, efficient infrastructure use and the aggregation
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT CITY OF GREATER GEELONG
13 URBAN ENTERPRISE PTY LTDMAY 2012
and sustainability of commercial facilities. In relation to restricted retail trade goods the SPPF
seeks to:
“…provide outlets of trade-related goods or services directly serving or ancillary to industry and
which have adequate on-site car parking…”
17.01-2 COMMERCIAL, OUT OF CENTRE DEVELOPMENT FOR METROPOLITAN MELBOURNE
Policy which relates to out-of-centre development in Metropolitan Melbourne generally aims to
ensure that proposals or the expansion of single use retail, commercial and recreational facilities
outside activity centres are discouraged by giving primacy to development within activity centres.
However, the SPPF states that where out-of-centre proposals are considered, the proposed use
or development should be “…of net benefit to the community in the region served by the
proposal...”
17.02-1 INDUSTRY, INDUSTRIAL LAND DEVELOPMENT (P.2)
The SPPF seeks to identify land for industrial development in urban growth areas where good
access for employees, freight and road transport is available. It seeks to provide an adequate
supply of industrial land in appropriate locations, including sufficient stocks of large sites for
strategic investment.
3.2.3.2.3.2.3.2. CCCCITY OF ITY OF ITY OF ITY OF GGGGREATEREATEREATEREATER R R R GGGGEELONG EELONG EELONG EELONG MMMMUNICIPAL UNICIPAL UNICIPAL UNICIPAL SSSSTRATEGIC TRATEGIC TRATEGIC TRATEGIC SSSSTATEMENT TATEMENT TATEMENT TATEMENT (MSS)(MSS)(MSS)(MSS)
The Municipal Strategic Statement (“MSS”) underpins the Local Planning Policy Framework
(“LPPF”) in the City of Greater Geelong. It sets out the key planning, land use and development
objectives for the municipality; and provides the strategy and policy to administer these
objectives. The core policies which are relevant to the proposal are identified below:
21.02 CITY OF GREATER GEELONG SUSTAINABLE GROWTH FRAMEWORK
The sustainable growth framework aims to ensure that the City of Greater Geelong meets the
needs of the community without compromising the ability of future generations to meet their
needs. Of particular relevance, in ‘encouraging diversity in industry’ the framework requires
planning to:
• Encourage the growth of new and sustainable industry sectors.
• Look for innovative ways to engage with the private sector.
• Provide a diverse range of high quality industrial and commercial land.
21.07 ECONOMIC DEVELOPMENT AND EMPLOYMENT
21.07-2 INDUSTRY OBJECTIVES
The MSS seeks to promote ongoing employment and economic development in the Geelong
Region. Relevant industrial objectives seek to:
• Provide an adequate supply of appropriately located industrial land that meets the needs of
different industries.
• Direct different types of industrial development to appropriate locations.
• Facilitate well designed and serviced industrial development that provides a high level of
amenity for workers and visitors.
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21.07-2 INDUSTRY STRATEGIES
Relevant industry strategy which seeks to implement the MSS objectives seeks to:
• Focus new industrial development around major transport routes and infrastructure assets.
• Provide sufficient industrial land to meet a range of industrial needs in Geelong, including
small to medium sized industry.
21.07-2 RETAIL OBJECTIVES
Retail policy for the City of Greater Geelong seeks to enforce the following objectives:
• To facilitate the development of vibrant and viable retail activity centres in accordance with
the Geelong Retail Activity Centre Hierarchy.
• To ensure all major retail developments, and out of centre developments, provide a clear net
community benefit.
21.07-2 RETAIL STRATEGIES
The MSS sets out a series of retail strategy objectives which govern the development of new
retail facilities in Geelong. These strategies seek to:
• Ensure that new retail development is directed to activity centres and is consistent with the
role and function described in the Retail Activity Centre Hierarchy.
• Direct restricted retail (bulky goods) use and development to Central Geelong, the
nominated homemaker precinct at Waurn Ponds, the Corio homemaker precinct subject to
appropriate re-zoning and other homemaker precincts and activity centres (see Figure 3
overleaf for retail hierarchy and homemaker precincts).
• Discourage restricted retail (bulky goods) development in industrial areas.
• Require that applications for new centres to establish the retail need for such use and
development and demonstrate that there are no adverse impacts on the operation of the
retail activity centres hierarchy.
21.07-08 RETAIL ACTIVITY CENTRE HIERARCHY
The existing retail hierarchy framework (as shown in Figure 3) identifies a Potential Homemaker
Precinct in Corio (now named the Geelong Gateway Homemaker Precinct – see annotation 31 in
Figure 3). Existing Homemaker Precincts are identified in Warun Ponds, Moorabool/Fyans,
Geelong West and North Geelong.
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT CITY OF GREATER GEELONG
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FIGURE 3 CITY OF GREATER GEELONG MSS, CLAUSE 21.07-08, RETAIL CENTRES HIERARCHY
Source: City of Greater Geelong Planning Scheme, Clause 21.07-08
3.3.3.3.3.3.3.3. OOOOTHER THER THER THER LLLLOCAL OCAL OCAL OCAL PPPPLANNING LANNING LANNING LANNING PPPPOLICYOLICYOLICYOLICY
3.3.1. 22.03 ASSESSMENT CRITERIA FOR RETAIL PLANNING APPLICATIONS
The MSS sets out policy which applies to proposals where a planning scheme amendment or
planning permit application is required for new or expanded provision of retail floorspace. This
policy sets out the framework for assessing such applications or amendments. The core policy
and objectives and policy are set out below.
OBJECTIVES
• To ensure that applications for new centres establish the retail need for such use and
development and demonstrate that there are no adverse impacts on the operation of the
retail activity centres hierarchy.
• To ensure that applications involving a planning scheme amendment in or adjoining existing
activity centres clearly establish a retail need for such use and development and
demonstrate that there are no adverse impacts on the operation of the retail activity centres
hierarchy.
• To ensure all major retail uses and developments provide clear net community benefit.
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• To allow/guide consideration of applications involving an increase in an identified floor space
cap, in order to accommodate the changing retail trends and retail demands.
POLICY
The LPPF states that an Economic Impact Assessment should be provided for ‘new major retail
development involving 2,000m2 or more in gross leasable floor area’ and ‘out-of-centre
proposals’.
The issues and information are required to be addressed as part of an economic impact
assessment and level of information required depends on the size of the retail floorspace and will
be at the discretion of the responsible authority. The key assessment criteria include:
• General Issues (type, quantum, community benefit, employment, etc);
• Retail demand;
• Retail supply;
• Escape spending;
• Impact on existing retail facilities; and
• Net community benefit.
OUT OF CENTRE PROPOSALS
The MSS, in addition to an Economic Impact Assessment, requires that out-of-centre proposals
must demonstrate why the development location is considered for retail development, by
following sequential approach which states why the proposal:
• Cannot be accommodated in an existing activity centre, or failing that;
• Cannot be accommodated on an edge of centre location (which has a functional relationship
with an activity centre) or, failing that;
• Cannot be accommodated in the nominated homemaker precincts.
An out-of-centre proposal should also then demonstrate that the location is consistent with urban
context of the surrounding area, including potential impacts of the proposed development on local
character and amenity.
3.4.3.4.3.4.3.4. CCCCOOOORIO RIO RIO RIO NNNNORLANE ORLANE ORLANE ORLANE DDDDRAFT RAFT RAFT RAFT SSSSTRUCTURE TRUCTURE TRUCTURE TRUCTURE PPPPLANLANLANLAN
The Corio Norlane Structure Plan (“Structure Plan”) supports the rezoning of the subject site
within Business 3 Zone in order to rezone the site for “…or restricted retail, offices and Business
Park….” [P.11].
3.4.1. THEME: LAND USE AND BUILT FORM, PRINCIPLE 6 – SUPPORT OPPORTUNITIES TO
IMPROVE THE RETAIL OFFER FOR LOCAL COMMUNITIES
Principle 6 sets out context for retail development in the Structure Plan area. It identifies that
“…land within the residual air emissions buffer to the MC Herd Abattoir is currently zoned
Residential 1 Zone however is not appropriate for residential development because of the
potential impact the abattoir operations might have on the amenity of new residents...” and that
“…the site is well positioned to accommodate some commercial development that would benefit
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from exposure to Bacchus Marsh Road and proximity to the Geelong Ring Road Employment
Precinct….” [P.18]
Accompanying Directions for Principle 6 seek to “…rezone land on Bacchus Marsh Road opposite
the MC Herd Abattoir to Business 3 Zone to support appropriate office and restricted retail
development….” [P.18]
3.4.2. CORIO NORLANE STRUCTURE PLAN: BACKGROUND REPORT
The Structure Plan Background Report compiles a body of evidence on which the Structure Plan
is based. A report by Essential Economics (Corio Norlane Urban Renewal Project Retail and
Activity Centre Assessment, 2009) analyses the retail capacity of the Structure Plan area,
concluding that [P.87]:
• Corio and Norlane are well-catered for in regard to the quantum of retail floorspace provided
located in the study area.
• The study area represents a relatively captive market, whereby escape expenditure is
relatively modest for a suburban area. However, escape spending in non-food retail is
relatively high, especially in comparison goods
• Having regard for the Geelong Gateway Homemaker Centre and the impact it will have on
reducing escape expenditure in the non-food sector, only limited potential exists to further
reduce escape expenditure levels.
• Growth in the study area’s level of retail spending will generate the potential for retail
development in the non-food sectors; only limited potential for development exists in the
food, liquor and groceries (FLG), food catering and retail service sectors.
• The dominance of Corio Shopping Centre and its location central to study area residents,
indicates there is only very limited potential for the development of further neighbourhood
shopping facilities.
• The assessment of the development potential in the non-food sector indicates that an
opportunity exists for some additional non-food retail floorspace in the study area. This may
consist of an expansion of the Corio Shopping Centre to include, for example, a second
Discount Department Store, or additional homemaker retail floorspace.
3.5.3.5.3.5.3.5. CCCCITY OF ITY OF ITY OF ITY OF GGGGREATER REATER REATER REATER GGGGEELONG EELONG EELONG EELONG RRRRETAIL ETAIL ETAIL ETAIL SSSSTRATEGYTRATEGYTRATEGYTRATEGY,,,, 2006200620062006
The City of Greater Geelong Retail Strategy (“GRS”) provides the framework which underpins the
retail development and the retail activity centres hierarchy in Geelong. Whilst the framework still
provides the basis for policy making in the retail sector it is now becoming somewhat dated as a
result of the passage of time. However, the retail strategy underpinned retail policy within the
MSS and the relevant policies which apply to both the proposal and the subject site are set out
below.
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3.5.1. PRINCIPLES AND ACTIONS FOR ACTIVITY CENTRES (CHAPTER 4.2)
CLOSELY MONITOR OUT-OF-CENTRE DEVELOPMENT, AND ALLOW SUCH DEVELOPMENT AT
APPROPRIATE LOCATIONS [P.17-18]
Out-of-centre policy seeks to ensure that retail activities which occur away from activity centres
involve an aggregation of uses at appropriate locations, and that such development contributes to
the achievement of a net community benefit and does not undermine retail activity centre policy.
Relevant policy actions include:
• Recognising the popularity of homemaker and other out-of-centre retail, and their specific
site criteria in terms of site size, location, exposure and access, etc.
• Supporting such developments where they are located at appropriate locations as defined in
the Retail Activity Centres Hierarchy.
• Ensuring that proposals for new or expanded homemaker development at these locations
are accompanied by a retail-economic analysis of the potential impact such proposals may
have on the existing retail hierarchy and existing level of retail service to the community.
• Assessing proposals for out-of-centre developments which are to be located outside the
specified locations against a strict set of out-of-centre assessment criteria.
APPLY THE RETAIL PLANNING AND DEVELOPMENT CRITERIA FOR RETAIL PROPOSALS IN
NEW CENTRES AND FOR EXPANSION OF EXISTING CENTRES [P.18-20]
Policy seeks to support retail development applications for new centres where the proponent
clearly establishes the retail need for such development in a new location, including the
development of new communities, and where there are no adverse impacts on the operation of
the retail activity centres hierarchy. Actions include [P.20]:
• Ensuring that proposals for new retail activity centres are accompanied by a suitably-
detailed economic analysis showing market justification (or retail need) for the development
and which provides evidence that the existing retail activity centre hierarchy will not be
adversely affected and that the proposed development will generate a net community
benefit.
• Ensuring that proposals for expanded retailing in existing activity centres, and which
requires a rezoning, also meets the requirements specified above.
• Supporting retail activity centre developments where they are required to serve the needs of
new residential communities associated with major urban development.
• Requiring an economic impact assessment to be prepared for major new retail development
generally involving 2,000m2 or more.
3.5.2. HOMEMAKER RETAIL (CHAPTER 5.9)
The Retail Strategy identifies homemaker retailing as “…occupying a stand-alone site, or several
sites in a precinct, and may also be described as an integrated centre where such a location
contains a range of comparison shopping (eg, bedding, white good, electrical goods) in an
integrated shopping environment…”
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HOMEMAKER RETAIL LOCATIONS
The Retail Strategy supports the principle of Council explicitly identifying specific locations as a
focus for future homemaker development (following detailed location analyses by either Council
or developers). In particular, the Strategy supports the creation of two homemaker concentrations
for this purpose: one at Waurn Ponds to the south of urban Geelong, and one in North Geelong.
NEW HOMEMAKER DEVELOPMENT
The Retail Strategy notes that “…while Waurn Ponds and North Geelong are supported as the two
preferred locations for future homemaker retail development in Geelong, this does not
necessarily preclude other future out-of-centre homemaker development outside these locations
over the life of this Strategy…” [P.41]. Therefore, the Strategy states that proposals for future
homemaker retailing may be established on a site or in a new precinct if the proponent can
demonstrate that [P.41]:
• The proposed development cannot reasonably be accommodated at either the Waurn
Ponds site or the North Geelong; and
• The proposed development meets the out-of-centre assessment criteria outlined in the
Strategy (Chapter 6).
3.5.3. CRITERIA FOR ASSESSING RETAIL DEVELOPMENT PROPOSALS (CHAPTER 6)
The Retail Strategy set out the framework for assessing out of centre retail proposals, based on
the following criteria:
• Locational Framework
• Accessibility Framework
• Urban Design
• Retail – Economic Justification
• Net Community Benefit.
3.5.4. LOCATIONS FOR ADDITIONAL RETAIL PROVISION (CHAPTER 11.6: NON-
FOOD RETAIL)
The Retail Strategy provides discussion on the locations for additional retail provision in the
homemaker sector, stating that [P.92]:
“…The continued popularity of homemaker retail, driven by strong rates of population growth and
new home development and the popularity of lifestyle and leisure living, are expected to continue
to support new homemaker development in the region. Based on forecast spending growth - and
as an indicative estimate of future requirements to meet population growth - it is likely that the
increase in homemaker floorspace would comprise approximately 30,000m2 to 40,000m2 over
the period to 2021 (Note: This excludes non-retail and trade related floorspace). Beyond 2021,
continued population growth will support ongoing homemaker development. Homemaker
floorspace development is expected to be concentrated in locations identified in the Strategy as
priorities for such development, although there will be scope for development outside these
areas, subject to the application of a strict set of out-of-centre assessment criteria (refer Chapter
6)…”
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3.5.5. SUMMARY OF RETAIL ISSUES AND OPPORTUNITIES (CHAPTER 13)
RETAIL ACTIVITY CENTRE HIERARCHY
The Strategy acknowledges that homemaker retailing has been an area of rapid growth in
Greater Geelong in recent years, and states that “…there is considerable interest in current
proposals for this form of development. To a large extent, planning for homemaker retailing has
mainly occurred on a case-by-case basis, reflecting the significant new growth in this form of
retailing and also the lack of a strong planning policy for assessing these permit applications.
This situation has contributed to perceptions of ad hoc planning decisions. The Strategy provides
support for homemaker retailing, having regard for industry trends, retail growth, available sites
and current proposals….” [P.124]
3.6.3.6.3.6.3.6. PPPPLANNING LANNING LANNING LANNING SSSSCHEME CHEME CHEME CHEME AAAAMENDMENTMENDMENTMENDMENTMENDMENT RRRREVIEWEVIEWEVIEWEVIEW
Table 2 provides a summary of relevant Planning Amendment proposals and decisions relating to
restricted retail premises and sites surrounding the subject site. These amendments are
specifically noted within the Fagg Bros Pty Ltd submission and are therefore relevant to the
merits of that objection.
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TABLE 2 SUMMARY REVIEW OF RELEVANT PLANNING SCHEME AMENDMENTS
AmendmentAmendmentAmendmentAmendment Amendment C98Amendment C98Amendment C98Amendment C98 Amendment C166Amendment C166Amendment C166Amendment C166 Amendment C187Amendment C187Amendment C187Amendment C187 Amendment C253Amendment C253Amendment C253Amendment C253
YearYearYearYear 2006 2009 2011 2012
SiteSiteSiteSite HomeTown Geelong,
Princes Highway
North Geelong.
Land south of the
Masters subject site,
currently zoned R1Z.
Geelong Ring Road
Employment Precinct
(GREP).
1-3 and 5-19 Princes
Highway, Norlane.
ProposalProposalProposalProposal Rezoning from I2Z to
Comprehensive
Development Zone to
facilitate the
development of
41,000m2 of retail
development and
6,900m2 of business
uses.
Rezone land from
Residential 1 (R1Z) to
Business 3 (B3Z);
Introduce Clause
34.03: Business 3
Zone;
Remove Schedule 14
to DDO14) and
Introduce DDO19.
Rename Heales Road
Industrial Estate to
GREP, restructure
lots, and introduce
changes to sub-
division and layout.
Bunnings proposal to
rezone land from I2Z to
B4Z to more
appropriately reflect the
characteristics of the
proposed Bunnings
Store (which is under
construction)
Key Key Key Key IssuesIssuesIssuesIssues � Potential impact on
Port of Geelong
� Scale and size of
proposal
� Need
� Current constraints
as a residential site
� Appropriateness for
business uses
� Strategic justification
� Transport
implications
� Acquisition of land
� Impact on policy
framework
� Impact on other retail
centres and need
Panel Panel Panel Panel
ConclusionsConclusionsConclusionsConclusions
Proposal did not
deliver a net
community benefit,
would impact on the
Port of Geelong and
was too large in scale.
The proposal was
recommended to be
abandoned.
B3Z is appropriate for
the land and
Amendment C166
should be adopted into
the planning scheme.
Amendment C187
should be adopted.
No objections to the
proposal were
received, therefore no
Panel was required.
StatusStatusStatusStatus Abandoned. Recommended for
approval by panel but
refused by Planning
Minister.
Adopted. Adopted (10 April
2012), awaiting
Ministerial Approval.
Source: City of Geelong Planning Scheme, Urban Enterprise
3.7.3.7.3.7.3.7. WWWWOOLWORTHOOLWORTHOOLWORTHOOLWORTH’’’’S S S S ‘‘‘‘OOOOXYGENXYGENXYGENXYGEN’’’’ AAAADVISORY DVISORY DVISORY DVISORY CCCCOMMITTEEOMMITTEEOMMITTEEOMMITTEE
An Advisory Committee was set up to assess 11 ‘Oxygen’ [now re-branded as Masters] store
proposals across Victoria which sought to provide an assessment of the suitability of the sites for
development. It provides planning policy and strategic analysis of the Masters concept and
assesses the proposal for a Masters store in North Geelong, on the site of the old Geelong Golf
Club.
Policy considerations and conclusions which are relevant to the Masters proposal and subject
site are summarised below.
The Committee provided comments on a range of strategic planning, policy and economic issues
in relation to the proposed Masters stores. Relevant comments include [P.20-21]:
• Throughout the hearings it became evident that within the inner metropolitan area and
Geelong, the ability to locate a restricted retail development such as an Oxygen Store of
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some 13,000 square metres is difficult to achieve within existing activity centres. Equally, it
was arguable that it may be undesirable to locate a 3.5 hectare big box retail store, including
associated car parking, within an activity centre.
• With required sites being of the order of 3.5 hectares and the built form represented by a
large footprint, single buildings, with ample car parking immediately adjacent to the store,
the concept of locating such developments within, or even on the edge of activity centres, is
most often not practical from a land economics perspective.
• The Retail Policy Review Discussion Paper released by the Minister for Planning in October
2008 aims to provide greater clarity in relation to the policy and statutory framework for
consideration of retail proposals. The policy generally encourages bulky goods retailing to
locate within business zones (in particular the Business 4 Zone) in proximity to an existing or
planned activity centre or retail/homemaker cluster.
The committee considered a site on the former Geelong Golf Club for an ‘Oxygen store, medical
centre, food and drink premises and specialty shops’. The findings of the committee did not
support the proposal and concluded [P.17]:
• In respect of the home improvement store and the other uses proposed, the Committee
does not accept that in the main, the local and State policies are complied with. The
Committee does not accept that the proposed site fits within the Geelong North Homemaker
Precinct, and as an out of centre development, the Committee considers the sequential test
has not been satisfied through economic evidence. The Committee maintains that just
because a site is perceived to be available, it does not necessarily mean that the site is the
most appropriate.
• There was no substantive evidence that the viability of recognised activity centres would be
severely compromised through the introduction of a home improvement store on the subject
site, however the Committee noted the poor functionality of having a standalone bulky goods
retail outlet and held the view that the nominated site should not be supported.
3.8.3.8.3.8.3.8. SSSSUMMARYUMMARYUMMARYUMMARY
The state and local policy frameworks provide extensive guidance on bulky goods retail and
commercial business development, out-of-centre proposals and the mechanisms for assessing
proposals for such developments. We have considered the Business 3 Zone and Masters
proposals against the established policy framework and have identified the following common
themes that are critical in establishing the appropriateness of the proposals:
• Ensuring the economic well-being of communities by supporting and fostering economic
growth and development by providing land, facilitating decisions, and resolving land use
conflicts;
• Encouraging development which meets the communities’ needs for retail, entertainment,
office and other commercial services and provides a net community benefit;
• Where possible, positioning new retail and commercial development within or on the edge of
activity centres identified within the existing Activity Centres Hierarchy;
• Where development within or surrounding existing activity centres is not possible, and
proven via a robust sequential test, ensure that strict assessment criteria for new centres or
out-of-centre developments are met; which demonstrate:
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• That there is identifiable retail demand for the proposal;
• The existing retail supply;
• Significant escape spending which can be captured;
• That there is no adverse impact on the existing retail hierarchy; and
• That the proposal demonstrates a ‘net community benefit’.
• Homemaker and bulky goods retailing is acknowledged within the policy framework as a use
that is extremely difficult to locate within or around existing activity centres; due to issues
associated with size, scale and vehicular access. Future development ‘out-of-centre’ or in
new centres is not precluded where it can be demonstrated that proposals satisfy the above
retail assessment criteria.
In summary, the Masters proposal would not be contrary to the established strategic framework,
including the MSS and Geelong Retail Strategy, if it can be adequately demonstrated that the
proposal meets the sequential site selection test and the assessment criteria outlined above.
Similarly, the development of an office/business park on the southern section of the site is
supported by policy which encourages development which meets the community’s need for office
and other commercial services. It should be noted that there is little direction provided in the
Greater Geelong Planning Scheme regarding the provision of larger format office space and
other uses typically found in the Business 3 Zone, other than support for office space to be
located within existing activity centres and the Geelong City Centre.
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4. PEER REVIEW: NEED AND ECONOMIC
ASSESSMENT
4.1.4.1.4.1.4.1. IIIINTRODUCTIONNTRODUCTIONNTRODUCTIONNTRODUCTION
This section provides an overview of the key findings of the Masters Home Improvement Centre
Corio: Need and Economic Assessment 2012 (Deep EndDeep EndDeep EndDeep End rererereportportportport) and a high level peer review of
the methodology employed. This section also touches on the extent to which the assessment
meets the Assessment Criteria for Retail Planning Application of the Greater Geelong Planning
Scheme (Clause 22.03).
4.2.4.2.4.2.4.2. DDDDEVELOPMENT EVELOPMENT EVELOPMENT EVELOPMENT PPPPROPOSALROPOSALROPOSALROPOSAL
A bulky goods development is proposed to be located in the northern part of the subject site. The
proposal involves the development of 18,471m2 of gross floor area, including a 13,701m
2 Masters
Store and 4,770m2 of adjacent bulky good floorspace in four tenancies. The proposal includes
487 on-grade parking spaces with access from Bacchus Marsh Road. This is depicted in the
development proposal (shown in Figure 4).
FIGURE 4 DEVELOPMENT PROPOSAL
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Source: Deep End Report, p. 14.
4.3.4.3.4.3.4.3. CCCCATCHMENT ATCHMENT ATCHMENT ATCHMENT AAAAREAREAREAREA
The Deep End Report states that “the primary catchment sector is contained mostly within 3-10
km of the site and includes Corio and Lovely Banks as well as the townships of Lara”. The
secondary catchment area contains the “urban areas north of Geelong CBD” including Norlane,
Bell Post Hill, Bell Park, North Geelong, Hamlyn Heights and Geelong West “plus rural areas
including townships such as Bannockburn and Anakie”. 1
The catchment area is depicted in
Figure 5.
FIGURE 5 CATCHMENT AREAS
Source: Deep End Report, p. 31.
The defined catchment covers a wide area. In particular the secondary south and secondary west
catchment areas may not provide significant trade for the subject site. However, this has been
identified and accounted for in calculation of market share assessed in Section 2.11.
The defined catchment areas align closely with the catchment area used in the Bunnings Norlane
Relocation Economic Assessment (Essential Economics, 2011, p.24).
Whilst the catchment area appears broad, the market share estimates identify that only a
percentage of expenditure by residents in this area will be captured by the proposed Masters
store. In this respect, the market share estimate is the key assumption to be tested.
1 P. 30 Deep End Report
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4.4.4.4.4.4.4.4. EEEEXISTING XISTING XISTING XISTING RRRRETAIL ETAIL ETAIL ETAIL SSSSUPPLYUPPLYUPPLYUPPLY
In total, 91,818 m2 of Bulky Goods floorspace was identified. This comprises 74,263m
2 of “Total
Home Improvement” floorspace and 17,555 m2 of “Other Bulky Goods” floorspace.
The report notes that bulky goods floorspace within the primary catchment area is clustered in
two main precincts: the Corio Homemaker Precinct and Corio Village Sub-regional Centre. The
primary catchment area contains over 30,864 m2 of Bulky Goods floorspace.
Utilising online mapping systems and the Shopping Centre Directory (Property Council of
Australia, 2009), Urban Enterprise was able to verify the overall quantum of floorspace as
identified in the Deep End Report.
4.5.4.5.4.5.4.5. PPPPOPULATIONOPULATIONOPULATIONOPULATION
Historical and projected population levels used in the Deep End report were verified using Profile
Id and Forecast Id data available online.
Whilst minor differences were found, it is believed that these were the result of differing
geographical boundaries and custom population data used by Deep End as opposed to Urban
Enterprise. For the purposes of the retail assessment, the population figures as provided by Deep
End are found to be reasonable.
4.6.4.6.4.6.4.6. EEEEXPENDITURE XPENDITURE XPENDITURE XPENDITURE CCCCATEGORIESATEGORIESATEGORIESATEGORIES
Deep End has undertaken a bulky goods retail assessment based on current and forecast
expenditure by residents (rerereretailtailtailtail expenditure) and businesses (tradetradetradetrade expenditure) in the catchment
area.
The report includes a number of items in the retail assessment of expenditure on bulky goods.
The following table provided a summary of the definitions of the market and expenditure
categories by expenditure items.
TABLE 3 MARKET, EXPENDITURE CATEGORIES AND ITEMS
Market Category Sub-Category Items Retail/Trade
Bulky Goods
Home Improvement
Market
Core Hardware &
Garden
Core Hardware &
Garden
Household tools, Household non-durable goods and flower & garden supplies
Retail and Trade
Other Home Improvement
Restricted Retail
Outdoor furniture, barbeques, floors & floor coverings, kitchen appliances, small
appliances, curtrains & blinds, storage and craft.
Retail and Trade
Camping Camping equipment Retail only
White Goods Refrigerators, dishwashers, washing
machines and dryers. Retail and
Trade
Other Bulky Goods Market
Other Bulky Goods
Other Bulky Goods
Auto accessories, equestrian supplies, bedding, furnishings, fabric, manchester,
home entertainment goods, party supplies, swimming pools and office equipment &
supplies.
Retail only
Source: Deep End report p. 24-29, table compiled by Urban Enterprise 2012.
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The retailretailretailretail expenditure estimate includes the core hardware & garden market, other home
improvement market and other bulky goods market.
The tradetradetradetrade expenditure includes the core hardware & garden market, other home improvement
market but excludes the camping equipment market and other bulky goods market.
Deep End has also assumed that expenditure on Core Hardware & Garden and Other Home
Improvement goods will be undertaken in the Masters Store; expenditure on Other Bulky Goods
will be undertaken in the adjacent bulky goods stores on the subject site.
The items used in the Deep End Report match home improvement market items. Although white
goods are not typically sold in the home improvement market, it is understood that Masters will
sell these items.
It is also understood that items under the “Other Bulky Goods” category will be sold by the
adjacent tenancies on site. As such, it is appropriate to include these items for the purposes of
the retail analysis.
4.7.4.7.4.7.4.7. EEEEXPENDITURE XPENDITURE XPENDITURE XPENDITURE LLLLEVELS OF EVELS OF EVELS OF EVELS OF CCCCATCHMENT ATCHMENT ATCHMENT ATCHMENT AAAAREAREAREAREA
Deep End estimated that over $252.8 million of bulky goods expenditure was available in the
catchment area in 2010/11. $214m (83%) has been attributed to expenditure by residents (retail)
while the remaining $38.7m (17%) has been attributed to expenditure to businesses (trade).
Based on data provided in the Deep End Report, expenditure per resident ranges between
$2,500 and $3,402 per person (depending on the location of residency in the catchment area).
The retailretailretailretail expenditure is based on MarketInfo data, which uses the ABS Household Expenditure
Survey, Census of Population and Housing and other data sources to provide estimates of small
area residential spending patterns.
The tradetradetradetrade expenditure was estimated using the following methodology:
• Deep End undertook an assessment of the national retail and trade home improvement
market: the total national ‘contestable’ market for home improvement is estimated at
$41.388 billion. $24.034 billion (or 58.1%) of the market has been attributed to retail
expenditure, while $17.354 billion (or 41.9%) has been attributed to trade expenditure.2
Details of the national market are summarized and reviewed in following section.
• The national retail and trade home improvement market is then distributed down to the SLA
level by applying the proportion of the value of new homes and alterations in each SLA
using the ABS 2008/09 Building Approvals data. This is then distributed to the Census
Collection District (CCD) level by applying the proportion of alterations and additions
spending by CCDs using the MarketInfo data.
It was found that the methodology to estimate retail expenditure is reasonable for the purposes of
the retail assessment; MarketInfo data is generally accepted as the industry standard for small
area household expenditure.
The expenditure per person aligns closely with the figures used in the Bunnings Norlane
Economic Assessment (Essential Economics, 2011) for ‘hardware and homemaker retailing’.
2 P. 27, Deep End Report
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Although the trade (business) methodology appears to be over-simplified (it is derived solely from
the value of materials used in domestic additions and alterations in the catchment area), the
result is that trade expenditure accounts for only 17% of the total available expenditure for the
Masters store. It could be argued that this proportion should be higher, based on our
understanding of the typical sales breakdown of major home improvement retailers. The trade
market could also be supported by the development of the Geelong Ring Road Employment
Precinct, which will generate significant demand for construction materials in the development
stages, as well as ongoing passing traffic and local employee demand.
A t the national level, the total value of the Masters ‘contestable market’ been sourced to the
Australian National Accounts data, annual reports and presentations by major competing retailers
and high level ABS retail data.
It is difficult to provide verification of these estimates without undertaking significant further
research on the national bulky goods market.
4.8.4.8.4.8.4.8. EEEEXPENDITURE XPENDITURE XPENDITURE XPENDITURE CCCCAPTUREAPTUREAPTUREAPTURE
Deep End has assumed that an additional 20% of the sales for Masters Corio would be captured
from outside the catchment area.
It is standard practice to assume that a small proportion of trade will be captured from outside the
catchment area, largely from passing traffic. This proportion is typically between 5% and 20% of
total expenditure captured from within the catchment area.
Given the location of the site on an arterial road and adjacent to the Geelong Ring Road, an
external impact level at the higher end of the usual scale (20%) is not unreasonable.
The Bunnings Norlane Economic Assessment (Essential Economics, 2011) has similarly
assumed that 20% of total turnover will be derived from outside the catchment area. As such,
Deep End’s assumption is reasonable for the purposes of the analysis.
However, the Planning Scheme’s Assessment Criteria for Retail Planning Applications stipulates
that the retail assessment should “estimate existing levels of escape spending” demonstrate the
“extent to which the proposal will draw trade from beyond the catchment”, including “estimates on
the share of this escape spending that could be reasonably by the proposal”. Deep End has not
provided substantial evidence with regards to this Planning Scheme requirement.
4.9.4.9.4.9.4.9. MMMMARKET ARKET ARKET ARKET SSSSHAREHAREHAREHARE
Deep End has assumed the following market shares for the Masters Store. No source is provided
for these assumptions.
TABLE 4 MARKET SHARE OF MASTERS STORE, BY SALES
Area Core Hardware & Garden
Other Home Improvement
Total Home Improvement Market
Share
Total Catchment AreaTotal Catchment AreaTotal Catchment AreaTotal Catchment Area 17.6%17.6%17.6%17.6% 10.0%10.0%10.0%10.0% 14.0%14.0%14.0%14.0%
Source: Deep End report p. 52.
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The Masters store is estimated to account for between 11% and 18% of competing floorspace in
the catchment area once it is opened. This provides a guide to the likely overall market share of
the Masters store.
Given the strong marketing ability and increasing brand awareness of Masters, the market share
shown for the Masters store should be considered as a minimum share.
4.10.4.10.4.10.4.10. SSSSALES ALES ALES ALES FFFFORECASTS AND ORECASTS AND ORECASTS AND ORECASTS AND TTTTURNOVER RATESURNOVER RATESURNOVER RATESURNOVER RATES
The following table provides the sales forecasts and the turnover rates of the Masters Home
Improvement Centre Corio.
TABLE 5 SALES FORECASTS AND TURNOVER RATES, 2013/14
Total Catchment
Beyond Catchment
(20%) Total Sales
Market Size ($mil)
$139.0 -
Total Home Improvement Market Share
14.0% -
Sales Masters Corio
$19.4 $4.9$4.9$4.9$4.9 $24.3
Floorspace (m2)
13,543 m2
Turnover density ($ per m2)
$1,796 per
m2
Source: Deep End report p. 52.
The estimated sales for Masters Corio have been calculated by applying the assumed Market
Share to the total market size of the catchment area. Deep End has applied an additional 20% in
sales as a result of expenditure from passing trade beyond the catchment area (equivalent to
$4.9m).
Turnover density is then calculated by Deep End by applying the sales to the floorspace of the
proposed development. The turnover density of $1,796/m2 is very low for a bulky goods retailer.
A presentation made by Deep End to the Bulky Goods Retailers Association in 2009 indicates
that the average turnover density for bulky goods retailers was approximately $3,000 per m2.
The low turnover density confirms that the assumed market share of the store may have been
underestimated.
In a previous VCAT hearing, Urban Enterprise argued that the hardware retailer in question
(Bunnings) would be likely to experience an average turnover density of greater than $2,500/ m2
for the reasons below. These hold true for the Masters application.
• The typical bulky goods and hardware turnover density generally being in excess of
$2,500/m2;
• The strong brand recognition across Australia;
• The significant marketing capacity of the business and its parent organisations;
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• The high exposure location;
• The wide range of products available; and
• The high proportion of the store dedicated to retail products which typically generate a
higher turnover density compared with trade supplies.
4.11.4.11.4.11.4.11. SSSSALES IMPACT ON ALES IMPACT ON ALES IMPACT ON ALES IMPACT ON CCCCOMPETING OMPETING OMPETING OMPETING BBBBULKY ULKY ULKY ULKY GGGGOOD OOD OOD OOD PPPPROVIDERS ROVIDERS ROVIDERS ROVIDERS
The report states that the average impact on existing Bulky Goods retailers in the catchment area
would be -5.7% as a result of the decline in sales from $324.4 m (without the proposed
development) to $305.8 m (with the proposed development) in 2013/14.
The highest percentage impact is anticipated for the North Geelong Homemaker Precinct
(expected to see a decline of -7.3% in Bulky Goods sales).
Deep End does not provide detailed information regarding the calculations methods and
assumptions used, merely that “the assessed levels of impact are based in large part upon
Deep’s knowledge of the bulky goods industry including observations of actual impact on the
sales achieved by clients; outlets when competitive stores open within their catchment area”.3
In effect, the sales impacts calculated are the result of estimates based on experience and
observations rather than a strict quantitative analysis.
It is considered that the average sales impact on competing bulky good retailers is likely to
exceed -6%, given that the Masters store will increase the existing catchment area competing
floorspace by approximately 17%.
The impact on the Corio Village Shopping Centre is estimated by Deep End to be -7%. This is
based on the assumption that there is 2,800m2 of competing floorspace in the Shopping Centre.
It is considered that the level of competing floorspace is likely to be closer to 4,000m2, including
parts of Kmart (total 6,000m2), The Warehouse (1,500m2) and specialties such as Better Home,
Fantastic Variety, House Home Party, The Reject Shop, Manchester and More and Pets
Paradise. The impact assessment accounts for items as listed in the expanded definition of
restricted retail (as resulted by Planning Scheme Amendment VC88)4.
The change in impact as a result of increasing the competing floorspace in the Corio Village
Shopping Centre cannot be known without recalculation the Deep End model, however it is
considered that the overall impact on the Shopping Centre may be slightly higher than the -7% as
shown in the report.
4.12.4.12.4.12.4.12. EEEECONOMIC CONOMIC CONOMIC CONOMIC BBBBENEFITS ENEFITS ENEFITS ENEFITS (E(E(E(EMPLOYMENTMPLOYMENTMPLOYMENTMPLOYMENT))))
The Deep End Report estimates that a total of 100 direct and 88 indirect full-time equivalent
(FTE) jobs will be provided during construction period. This equates to a total economic impact of
188 FTE jobs during the construction phase of the Centre.
Furthermore, 176 FTE jobs will be provided by the on-going operations of the Masters Store and
adjoining bulky good operators. A further 109 indirect local jobs will be supported, supporting a
total of 285 FTE jobs during the on-going operations of the Centre.
3 P. 53, Deep End Report.
4 The list of restricted retail items are outlined in p.26 and p. p. 42 of the Deep End Report.
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According to the Bunnings Norlane Economic Assessment (Essential Economics, 2011), the
proposed Bunnings store will generate 100 FTE direct and indirect jobs during its construction construction construction construction
phasephasephasephase. This employment impact as provided by Deep End is almost double that of the analysis of
Essential Economics.
According to Essential Economics, a facility will generate 1 FTE job for every $500,000 of
construction expenditure. Further details on the constructions cost of the Masters Store Centre
would be required to assess the reasonability of the job impact.
According to Essential Economics report, 140 FTE direct and indirect jobs will be available during
the operations phaseoperations phaseoperations phaseoperations phase.
The employment assessment would benefit from disclosure of the multipliers used and the
estimated construction costs of the development in order to allow verification of the estimates.
4.13.4.13.4.13.4.13. NNNNET ET ET ET CCCCOMMUNITY OMMUNITY OMMUNITY OMMUNITY BBBBENEFITSENEFITSENEFITSENEFITS
The Deep End Report has outlined a number of community benefits that are provided as a result
of the development proposal. This includes:
• Use of currently vacant site;
• Increased shopping choice and convenience;
• Increased price competition;
• Minimising escaped expenditure; and
• Reduced need for travel and subsequent cuts in greenhouse emissions.5
The Deep End Report does not provide further detail beyond the statement above and further
analysis may be required to substantiate the net community benefits of the proposed
development.
4.14.4.14.4.14.4.14. SSSSEQUENTIAL EQUENTIAL EQUENTIAL EQUENTIAL TTTTESTINGESTINGESTINGESTING
Deep End has undertaken a sequential test to explore whether suitable land for a Masters store
exists within the catchment area.
The report has found that “no suitably sized vacant sites” exists. This examination was based on
the “zoning and aerial views and supplemented by site visits and other enquiries”. No further
details are provided.
However, the report has noted that two potentially suitable sites exists but are currently occupied
or subject to adverse planning considerations. These are:
• The current Bunnings Store site in Corio (with a planned relocation) and adjoining vacant
land on School Road (total site area of 2.947 ha.). Deep End has been “advised that the site
will accommodate a truck sales and servicing dealership following the relocation”; no further
details and evidence is provided; and
• A second site located at the Old Geelong Golf Club, North Geelong (total site area of 15.1
ha.). The “abandonment of Amendment C98” to the Planning Scheme has meant that the
5 P. 56 Deep End Report.
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site is no longer supported as a suitable location for a home improvement store (refer to
Section 3.7: Woolworths ‘Oxygen’ Advisory Commitee for details of the policy issues).
It is believed that no other sites of appropriate size and location exist in the local area, given the
dominance of established residential land uses and the lack of available large sites within
designated homemaker centres. The Oxygen Advisory Committee report notes the difficulty in
obtaining appropriate sites for large format stores such as Masters.
4.15.4.15.4.15.4.15. GGGGEELONG EELONG EELONG EELONG RRRRING ING ING ING RRRROAD OAD OAD OAD EEEEMPLOYMENT MPLOYMENT MPLOYMENT MPLOYMENT PPPPRECINCTRECINCTRECINCTRECINCT
The Deep End report is silent on the impact of the Geelong Ring Road Employment Precinct
(GREP). This Precinct, located on the opposite side of the Geelong Ring Road to the subject site,
is Geelong’s largest area for industrial development and covers over 500ha of land. The precinct
includes land within the Industrial 1 and Industrial 2 Zones, and will generate significant
employment and traffic levels immediately adjacent to the subject site.
It should be acknowledged that the construction of facilities and infrastructure within the GREP
over the short term, and the occupation and visitation of these businesses over the medium and
long term, will generate significant demand for hardware, trade supplies and bulky goods in the
local area.
In addition, there is likely to be significant demand generated for supporting businesses which will
require office and showroom type facilities in the vicinity of the GREP. Given the lack of land in
the business zones, and the lack of available floorspace or expansion opportunity within the
Corio Village Shopping Centre, it is considered that the subject site provides an ideal location for
office and ancillary business development to support the development of the GREP.
4.16.4.16.4.16.4.16. KKKKEY EY EY EY FFFFINDINGSINDINGSINDINGSINDINGS
The Deep End report provides a detailed and comprehensive economic assessment of the
Masters and ancillary bulky goods proposal.
The major assumptions underpinning the report, including catchment area, population levels,
expenditure categories and existing retail supply have been checked and verified.
Some aspects of the detailed retail assessment methodology include limitations and sources that
could not be verified. However on balance it is considered that the retail assessment
demonstrates that there is a substantial market for the bulky goods retail floorspace proposed.
This is based on a high-level review of the methodology only – more detailed analysis would need
to be undertaken if a full review or alternative assessment is required.
The calculations of economic impact on existing retailers are based on Deep End’s own
estimates. As such, it is difficult to assess these assumptions. It is considered that the impact on
existing retailers may be greater (but not significantly greater) than the figures shown in the
report. However, this cannot be quantified without a full review.
The discussion of net community benefit and sequential testing briefly address the key
requirements of the planning scheme, but would benefit from greater detail and evidence.
On balance, the economic assessment prepared by Deep End appears to meets the
requirements of the Planning Scheme and provides sufficient evidence that the proposal is viable
and will not generate an adverse impact on the existing retail hierarchy (subject to the
qualifications as discussed above).
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In addition, the GREP will generate significant demand for bulky goods and hardware retail
products within the catchment area. This has not been considered in the Deep End report (or
other recent retail assessments in the area). As such, the demand estimates included in the
report could be considered as conservative, particularly for trade (business) related expenditure
and expenditure growth projections as the GREP develops.
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT CITY OF GREATER GEELONG
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5. ANALYSIS OF SUBMISSIONS
5.1.5.1.5.1.5.1. FFFFAGG AGG AGG AGG BBBBROS ROS ROS ROS PPPPTY TY TY TY LLLLTDTDTDTD SSSSUBMISSION TO THE UBMISSION TO THE UBMISSION TO THE UBMISSION TO THE DDDDRAFT RAFT RAFT RAFT CCCCORIO ORIO ORIO ORIO NNNNORLANE ORLANE ORLANE ORLANE SSSSTRUCTURE TRUCTURE TRUCTURE TRUCTURE PPPPLANLANLANLAN
5.1.1. SUMMARY
Fagg Bros Pty Ltd (“Fagg”), who own the Mitre 10 hardware, garden supplies and timber chain,
provided a detailed submission to the Draft Corio Norlane Structure Plan on 17 February 2012.
The Fagg submission responded issues relating to bulky goods retailing in Corio and the
proposed rezoning of the subject site to Business 3 Zone. Fagg currently operate a Mitre 10
store at Bell Park, approximately 4km to the south of the subject site.
5.1.2. GENERAL ISSUES
The Fagg submission to the Structure Plan dealt with a wide range of bulky goods retailing issues
relating to Corio. A broad review of the general comments raised following key issues:
1. There is a lack of reference to the Geelong Retail Strategy in the Structure Plan.
2. There is no comment or analysis on the rezoning to B4Z of the future Bunnings Norlane
Store (located at 1-3 and 5-9 Princes Highway to the southern extent of the Structure
Plan area); which previously had received a planning permit on Industrial 2 Zoned land.
3. The rezoning of the Geelong Gate Homemaker Precinct to Business Zone 4 is not
discussed in the Plan.
In respect of the above comments, whilst they do not relate to the subject site in question, we
would make the following comments:
1. The Geelong Retail Strategy was prepared in 2006 and has subsequently been
embedded local retail policy in Greater Geelong. The Municipal Strategic Statement
articulates the findings of the GRS and establishes the Retail Centres Hierarchy in local
policy.
2. The proposed rezoning of the Bunnings Store in Norlane is currently subject to a
proposed panel amendment (Amendment C253) which will fully scrutinise site specific
and retail issues that are relevant to the site.
3. The Geelong Gateway Precinct has been long established as a potential Homemaker
Precinct within the policy framework (including the MSS and GRS) and has
subsequently been developed for a range of Homemaker uses.
5.1.3. KEY ISSUES RELATING TO THE SUBJECT SITE
Fagg fundamentally consider that the rezoning of the Masters site and adjacent site to the south,
from Residential 1 Zone to BZ3, is not justifiable on planning grounds. The reasons for this
argument and our responses to the issues are outlined in more detail below.
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MANUFACTURING AND INDUSTRIAL USES
The submission raises objections to the potential use of the site for ‘manufacturing or industrial’
land uses. Fagg considers that “…rezoning of the site to allow manufacturing and industrial
purposes would create an over-supply of land for industrial use…” [P.4]. This conclusion is drawn,
based on the following assumptions:
• The recently adopted Geelong Ring Road Employment Precinct (“GREP”) is the main focus
for new large and small scale industrial development. It will also adequately fulfil all the
requirements of a business park and should have a higher strategic planning priority.
• There is significant industrial land, both within the structure plan area, to the east (around
the Port of Geelong) and at Armstrong Creek around Keystone Business Park which provide
adequate land for future industrial and manufacturing growth.
URBAN ENTERPRISE ASSESSMENT
The Fagg submission relies heavily on the assumption that the GREP will provide sufficient
industrial and employment floorspace. However, there are two key issues with this argument.
Firstly, land within the site, which is proposed for office, business park and restricted retail uses,
is not proposed for ‘manufacturing or industrial uses’, nor is this the aim of the rezoning proposal.
The B3Z allocation will seek to facilitate office and business development, alongside a restricted
retail development; and therefore, the two precincts will fundamentally offer a different product.
Secondly, land at the GREP is zoned as Industrial 1 Zone and Industrial 2 Zone. These zones
are tailored to accommodate more specific and often heavier manufacturing and industrial uses,
as opposed to business park or office uses. A high amenity business park would not be
appropriate in the GREP or other industrial areas, such as the Port of Geelong. The submission
quotes the Amendment C166 Panel Report and states that the GREP “…was not in view and
therefore not mentioned in the Panel Report…” [P.5]. However, the Report had taken the area
into consideration and noted its incompatibility with B3Z uses, stating that [P.24]:
“…In relation to the large area north of the Geelong Bypass, its industrial zoning does not allow
some of the uses that will be permitted in the Business 3 Zone. Also, the zoning of the northern
industrial area and the size of its lots is more conducive to larger industries, including those that
need to be well separated from residential and other sensitive uses.
On the other hand the purpose of the Business 3 Zone is to encourage a mix of business,
restricted retailing and those industrial uses that will not have adverse amenity impacts either on
other uses on the site and in the surrounding the park…”
In summary, in our view, the Fagg submission does not reasonably differentiate between the
objectives of Business 3 Zone and Industrial 1 or 2 Zone. The proposed business uses on the
subject site would not be appropriate in a primary industry or manufacturing zone, and require a
highly visible gateway location in order to attract high quality occupiers. B3Z also provides a land
use that is sensitive to surrounding residential uses and provides a buffer between these uses
and the MC Herd Abattoir.
OFFICE USES
The Fagg submission considers that office development on the site is contrary to policy that
seeks to locate office development in the Central Activities Area. Fagg assert that a similar office
development was rejected as part of Amendment C98 at ‘Quay Business Park’ on Princes
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36 URBAN ENTERPRISE PTY LTDMAY 2012
Highway, and that a similar conclusion should be reached on the subject site. Furthermore, the
Fagg submission considers that office or business facilities could be located within the GREP.
URBAN ENTERPRISE ASSESSMENT
The Fagg submission relies on the Panel Report to Amendment C98 to support its objection to
office development on the site, stating that “…a similar conclusion would likely be reached in
relation to any office development on the subject site…” [P.6].
Following a review of the Report (see summary in Appendix A), we consider that the two sites are
fundamentally not comparable, for the following reasons:
• The Panel considered the C98 development to conflict with strategic planning objectives
primarily due to its location and impact on the Port of Geelong. The Panel concluded
that “…the policies in both the SPPF and LPPF give the port area primacy in this
Amendment proposal… …the Panel is of the opinion that future options for industrial or
port uses should be retained for the further development of this site…” [P.5]. As such is it
inaccurate to conclude that the site has similar issues to the subject site and, based on
this, assume that a similar conclusion would be reached.
• The site subject to amendment C98 was significantly larger than the subject site (circa
48,000m2) and was proposed for a mix of retail and office uses. The scale of the site
and its location resulting in the site triggering a range of additional issues in terms of
scale and impact.
• The Panel felt that there was a lack of supporting information to robustly justify the
proposal.
It is also considered that the office uses within this proposal would not be directly compatible with
the industrial nature of the GREP, as alluded to by Fagg, for the reasons outlined previously.
In addition, there is limited space for new office development in Corio, with the B1 zoned central
activity centre close to capacity. It is currently difficult to meet demand for any new small to
medium sized office development within the existing zoning structure and therefore new B3Z land
will help to alleviate this problem.
RESTRICTED RETAIL USES
The Fagg submission raises significant objections in relation to the potential use of the site for
restricted retail. In summary, the submission comments that:
1. If the subject site is rezoned as B3Z, it would automatically allow the use of the site for a
broad range of restricted retail premises.
2. Restricted retail is contrary to established retail hierarchy policy in the MSS (quoting
clause 21.07-3) and the proposal would impact upon the Corio Sub-Regional centre.
3. Amendment C253 states that policy supports the concentration of major retail
development within activity / town centres.
4. Corio and Norlane are well catered for in regard to the quantum of retail floorspace
provided in the study area, according to Essential Economics’ Report (2009), as quoted
in the Corio Norlane Background Report.
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5. The ‘Oxygen’ Advisory Committee found that the North Geelong Proposal was not
consistent with the City of Geelong’s strategic direction. The submission asserts that a
similar conclusion would be drawn on the subject site.
URBAN ENTERPRISE ASSESSMENT
Urban Enterprise has reviewed the above comments and addressed each, in turn:
1. The Fagg submission correctly notes that restricted retail premises would be a
permissible use under BZ3. It also states that “…a wide variety of retail uses would now
be possible, with a range of store size from very small to very large if the subject site
was zoned Business 3…” [P.8]. However, under B3Z, any restricted retail premises
would require a permit which provides Council with a control mechanism to guide the
type, size and amount of restricted retail use across the site.
2. Whilst the MSS has a preference for new retail development within activity centres, as
outlined in the strategic analysis in Section 3, if a retail need and community benefit can
be established for such a use and it can be demonstrated that there are no adverse
impacts on the operation of the retail activity centres hierarchy, then such uses could be
strategically justifiable.
3. As explained above, Amendment C253 also sets out the framework by which out-of-
centre retail can be considered, stating that: “…if establishing an edge-of-centre
development, a proposal must demonstrate that there will be net community benefit in
doing so…” Whilst it is acknowledged that the SPPF and LPPF encourage development
within activity centres, there can be strategic justification for out of centre development
where it satisfies need, does not detrimentally impact other centres and provides a net
community benefit. Additionally, the Masters proposal seeks to formally recognise the
subject site as a new Homemaker Precinct within the Retail Activity Centres Hierarchy.
4. Whilst The Draft Corio Norlane Structure Plan Background Report seeks to consolidate
the role of Corio Sub-Regional Centre, it also identifies capacity and scope for non food
retail development, stating that “…escape spending in non-food retail is relatively high,
especially in comparison goods…and…growth in the study area’s level of retail spending
will generate the potential for retail development in the non-food sectors..” [P.87]. The
background report does, however, only identify a demand for approximately 6,000m2 of
new non-food retail floorspace in the study area to 2019. As explained throughout this
report, proposals for significant new floorspace such as the Masters store, must
demonstrate how demand for such a product reaches a wider catchment and creates a
demand for floorspace beyond this level.
5. The Oxygen Committee found insufficient strategic justification accompanied the
proposal for a Homemaker Centre at Geelong. It found that the stand alone nature of
the development was contrary to strategic objectives. However, the Committee
accepted that the Masters stores were difficult to locate in existing activity centres and
that the sequential test should be applied to the development of such stores. Whilst the
North Geelong site did not sit in a strategically justifiable location, the Committee found
that “…there was no substantive evidence that the viability of recognised activity centres
would be severely compromised through the introduction of a home improvement
store…” and that the Committee was “…satisfied that the home improvement store
element of the proposal will result in a net benefit to the broader community…” [P.17].
PROPOSED BUSINESS 3 REZONING, BACCHUS MARSH ROAD, CORIO ECONOMIC AND STRATEGIC ASSESSMENT CITY OF GREATER GEELONG
38 URBAN ENTERPRISE PTY LTDMAY 2012
5.2.5.2.5.2.5.2. UUUURBIS RBIS RBIS RBIS SSSSUBMISSION TO THE UBMISSION TO THE UBMISSION TO THE UBMISSION TO THE DDDDRAFT RAFT RAFT RAFT CCCCORIO ORIO ORIO ORIO NNNNORLANE ORLANE ORLANE ORLANE SSSSTRUCTURE TRUCTURE TRUCTURE TRUCTURE PPPPLANLANLANLAN
Urbis, on behalf of Masters, prepared a submission to the Draft Corio Norlane Structure Plan on
16 February 2012. The submission sought to:
• Support the Structure Plan as a “…generally well conceived framework to guide the
development of Corio and Norlane…”
• Support the subject site as a developing restricted retail and business precinct.
• Support the development of a Masters store on the subject site to provide momentum for the
development of the GREP.
• Support Business 3 Zone as an adequate zoning tool for the site, but seek a rezoning to
Business 4 Zone, in order to better “…reflect the Council’s Strategic objective to encourage
the use of land for restricted retail purposes…”
Our review of the proposed Business 3 zoning strategy is contained in Section 3. In summary,
we consider that:
• Business 3 Zone would an appropriate zoning mechanism to package together the Masters
proposal alongside office and business uses on the southern parcel of the land; and
• If Council wished, as Urbis suggest, Business 4 Zone could better reflect Council’s strategic
objectives to bring forward the specific Masters subject site for restricted retail development.
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