A $75 million shopping centre at Morisset kitted out with a supermarket, retail, restaurants and cafes is one step closer thanks to Lake Macquarie council, despite objections from the state's road authority and nearby major retailers.
On Monday, councillors voted to make exceptions to its zoning rules for the 'Life and Home' centre, spearheaded by Winarch Capital, the same developer building the 30,000-person event space called Cedar Mill up the road.
Councillor David Belcher said the development is a significant opportunity for the Morisset area.
"It is continuing to grow and this business park area will greatly enhance the opportunities and options for people living and working in the greater Morisset area," he said.
"I'm very much looking forward to this coming to fruition but it would be remiss of me not to poke Transport for NSW and say that for this to really come to full fruition they need to lift their game and provide the appropriate road networking in that south-western end of Lake Macquarie so these businesses can continue to thrive and residents have the appropriate level of amenity in their community.
"I'm fully supportive of this proposal but obviously I'd like to see the state government step up in this space as well."
Transport for NSW objected to the proposal and raised concerns with traffic impacts as a result of development on the site along with others on Gimberts Road.
It said it would oppose the proposal until a mechanism is in place for a left turn slip lane from Gateway Boulevarde onto Mandalong Road.
In its response, the council said there are already a number of other developments already allowed on the site and that allowing retail and cafes would not lead to significantly more traffic.
The approval to allow additional uses on the site came despite concerns raised by Morisset Square and Morisset Shopping Centre that the proposal will compete with existing retailers and 'undermine the town centre'.
Their submissions argued a new retail centre would draw shoppers out of town and argued the economic benefit to the town had been grossly overestimated with a 'detrimental impact'.
The developer's economic assessment estimated a "modest" $21.8 million loss to businesses in Morisset, Bonnells Bay and Cooranbong in the first year of trading in 2024, and that the centres would continue to be viable into the future.
It argued total sales from Toronto to Wyee would increase from $451 million to $478 million in 2024, marking an increase of $26.8 million across the next three years.
In its response, the council said it engaged the University of Newcastle Institute of Regional Futures to peer-review the developer's economic assessment, which found insufficient information to support the figures it put forward.
The council's own staff were unable to verify the results due to a lack of publicly available commercial data.
Confirmed retailers at the centre include Bunnings, Genesis, Hungry Jacks, Oporto, an OzEducation childcare centre and Petquarters with about 700 carparks.
It argued the shops would provide 105 full time jobs and an extra 80 indirect roles when developed.
The proposal was exhibited to the public from October 18 to November 15, 2022.
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