Council rejects supermarket proposal

A plan of the proposed supermarket in Palmwoods

by Cameron Outridge

A controversial proposal to build a full-line Coles supermarket in Palmwoods has been rejected by the Sunshine Coast Council, with NeuBau Group, the developer behind the project, destined to appeal the decision in the Planning and Environment Court.

The proposal, which included a 3,869sqm supermarket and liquor store on Palmwoods Montville Road, faced strong opposition due to its location outside the town’s designated business centre and concerns about its impact on the town’s character and planning scheme.

The council’s decision followed a detailed assessment by council officers, who recommended rejecting the development. The report stated that the proposed shopping centre would undermine the Sunshine Coast Activity Centre Network, fragment the Palmwoods Local Activity Centre, and create a disconnected and unwalkable town centre. It also cited concerns about the bulk, scale, and design of the proposal, which was deemed inconsistent with the desired rural town character of Palmwoods.

Councillor Winston Johnston, whose division includes Palmwoods, supported the officer’s recommendation, noting that the proposed supermarket was nearly three times the size permitted under the current town plan. “The proposed supermarket that we’re discussing today is unfortunately outside the current zoning for business in Palmwoods and it’s outside the local business centre,” Cr Johnston said. He also highlighted traffic concerns, particularly for large servicing trucks that would need to navigate narrow roads to access the site.

Cr Johnston acknowledged that there was strong community support for a supermarket in Palmwoods but emphasised that the town plan was in place to protect the character of small towns. “A town plan is a document which tells us or tells the community that you can have certain uses in certain areas. If it says that it’s medium density residential, then that’s what it’s intended to be for. If it says it’s rural, that’s what it’s intended to be for,” he said. He warned that approving the supermarket would cause a breakup of the business centre of Palmwoods and could lead to further issues in the future.

Cr Joe Natoli also supported the rejection, arguing that large supermarkets often drew trade away from existing shopping precincts and could destroy the uniqueness of small towns. “What are we doing to protect the character of these railroad towns?” he asked, comparing Palmwoods to Beerwah, which he said had lost its small village characteristics due to the influx of big supermarkets. Cr Natoli stressed the importance of foot traffic for local businesses and expressed concern that the proposed supermarket would not bring competition to Palmwoods but rather create a dominant player.

However, not all councillors were in agreement. Cr Christian Dixon was the lone voice supporting the proposal, arguing that the Palmwoods community had waited long enough for a supermarket and that the existing approved site in the town centre had remained vacant for over 15 years. “The planning scheme does envisage a supermarket for Palmwoods,” Cr Dixon said, adding that the proposed site was only 100m from the local business centre and that the developer was committed to providing footpaths to connect the site to the town.

Cr Dixon also highlighted the potential economic benefits of the development, including the creation of 559 jobs during construction and 171 ongoing jobs once the supermarket was operational. “It’d be good to have some local jobs in Palmwoods,” he said, noting that many residents currently have to travel to Nambour or Maroochydore for their groceries.

Despite the differing views, the council voted 10-1 to reject the proposal, with Cr Dixon being the sole councillor in favour.

NeuBau Group director Tim Reed has expressed disappointment with the decision and confirmed that the developer would appeal the ruling in the Planning and Environment Court. “After research into the need – a 2500sqm supermarket, not a 1200sqm one – as well as a number of meetings with locals and an extensive look into where another site could potentially be and that could service the need, it was pretty easy to see the use and the site made sense,” Mr Reed told Sunshine Coast News.

Council outlines planning concerns: ‘detrimental to Palmwoods’ character’

A council officer explained the reasons behind the recommendation to refuse the proposed Coles supermarket in Palmwoods during the council meeting. The officer noted that the development would create a new retail centre outside the designated Palmwoods Local Activity Centre, leading to a fragmented and disconnected town centre.

This would be detrimental to Palmwood’s character, identity, and viability. The officer also raised concerns about the loss of medium-density residential zoned land, which is critical for the future residential development of the area.

“Further, the bulk scale and design is not consistent with the desired rural town character for Palmwoods nor does it contribute positively to the traditional streetscape of Palmwoods,” the officer said, concluding that the proposal was incompatible with the intended future uses in the zone.

Councillor Johnston defends rejection: ‘out of zoning, out of town’

CR Winston Johnston argued that rejecting the proposed Coles supermarket in Palmwoods was necessary to protect the town’s character and adhere to the existing town plan.

“The proposed supermarket is unfortunately outside the current zoning for business in Palmwoods and it’s outside the local business centre,” Cr Johnston said.

He emphasized that the town plan was designed to ensure that certain areas are used for specific purposes, such as medium-density residential or rural activities, and that approving the supermarket would disrupt the business centre and lead to further issues.

Cr Johnston also raised concerns about traffic, particularly for large servicing trucks that would need to navigate narrow roads to access the site. Despite acknowledging the community’s desire for a supermarket, he urged councillors to support the officer’s recommendation to refuse the application, warning that approving it would set a dangerous precedent for future developments.

Cr Natoli warns against supermarket’s impact on village character

CR Joe Natoli expressed strong concerns about the proposed Coles supermarket in Palmwoods during the recent council meeting, warning that it could harm the town’s unique village character and draw trade away from existing businesses.

Drawing parallels to Nambour, Cr Natoli highlighted how large out-of-town supermarkets have negatively impacted foot traffic in traditional shopping precincts. “Nambour has suffered because of the lack of movement from one part of the town to the other,” Cr Natoli said, emphasising the importance of foot traffic for local businesses.

He warned that approving the supermarket would lead to a dominant player in Palmwoods, stifling competition and reducing the quality of service and product offerings over time. Cr Natoli also stressed the need to protect the character of small railroad towns like Palmwoods, cautioning that the supermarket’s scale would drive growth and density into the area, fundamentally altering its charm.

“What are we doing to protect the character of these railroad towns?” he asked, urging the council to consider the long-term consequences of their decision.

Cr Law supports rejection of Palmwoods supermarket

CR David Law supported the officer’s recommendation to reject the proposed Coles supermarket in Palmwoods, citing feedback from the community and concerns about traffic.

Cr Law noted that the council’s consultation process for the planning scheme renewal showed that the majority of Palmwoods residents supported a small supermarket, not a full-line one.

“A 3200 square metres full-line Coles is not small,” he said. Cr Law expressed concerns about the impact of the supermarket on local roads, particularly the narrow and difficult-to-manoeuvre roads off the range that could become overused.

He said the community’s desire for a small supermarket was clear and that the proposed development did not align with their vision for the town.