ACT Planning Minister Mick Gentleman has used call-in powers to block a mixed-use development at McKellar shops in an unprecedented move.
The decision to block the two buildings proposed was made to preserve retail and commercial space at the local shops, a statement from the minister said.
"Local shops are the heart and soul of their suburbs and while the McKellar shops don't have as many retail or commercial offerings right now as we'd like, we do not want to limit the precinct's potential for the future," Mr Gentleman said.
The proposal was for two buildings at a 2145-square-metre site at McKellar shops, one of which would have comprised 14 residential units facing Dumas Street, while the other was intended to be a small retail premises.
Mr Gentleman said the proposed design of one of the buildings would have changed the character of Dumas Street to look residential, and that once built and sold off to individual owners, it would be very difficult to make moves to "redevelop or expand the site down the track, let alone attract suitable commercial tenants".
The development application also did not include enough car parking for residents and shoppers.
The application for Block 1 Section 51 McKellar was lodged in October 2021 by Kasparek Architects, with works estimated to cost $5,371,200.
Mr Gentleman said the ACT government is committed to carefully increasing housing stock within existing suburbs.
"We must use the planning system to maximise the commercial, residential and recreational gains of every new development in balance with protection of the character, environmental values and amenity of suburbs," he said.
The refusal does not rule out the developer submitting a revised design through another development application.
The move comes less than two months after the minister used the controversial powers to approve a community organisation's second attempt to build housing for vulnerable women at an Ainslie site.
The ACT government is currently reforming its planning system, undertaking consultation on a new bill which would see the existing call-in powers scrapped.
However, projects identified as "territory priorities" could still be expedited, with the final decision moving from the planning minister to the chief planner.
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