Shopping centre turf wars stall in court

SHOPPING centres throughout the state are waging legal battles to lock competitors out of the market - at the ultimate cost to shoppers, councils and ratepayers.

shopping wars graphic coles aldi woolworths iga

SHOPPING centres throughout the state are waging legal battles to lock competitors out of the market - at the ultimate cost to shoppers, councils and ratepayers.

The retail turf wars are stalling major shopping centre developments in Queensland, tying up a string of new projects in multimillion-dollar appeals, with centre owners and developers accused of entangling their competitors in red tape for years.

Retail analysts say the result is that councils are lumbered with massive legal bills and shoppers face less choice and higher prices. More than 20 appeals against shopping centre and retail plans have been lodged in the Planning and Environment court in the past two years.

Among them is an attempt by retail giant Westfield to block the state's first Costco outlet at North Lakes, north of Brisbane.

The Newman Government has taken steps to "call in" the development, halting a legal stoush that could have dragged on for years.

But the Costco case is only one in a long line of court battles between retail giants over proposed new centres.

And with the international giant casting about for Queensland sites - Costco is understood to be looking for a Brisbane southside location as well - the battle is likely to grow more intense.

Local Government Association of Queensland executive director Greg Hallam said competitor appeals ended up costing ratepayers millions of dollars in court fees.

"A couple of million dollars in court costs is not a problem for them," he said.

"What they are doing has been an abuse of market power."

There are fears ratepayers could be in for further legal bill shocks amid plans for dozens of new supermarket and home and hardware sites.

Appeals are delaying some developments by two or more years.

Last month Westfield, which owns North Lakes shopping centre, lost an appeal against another planned shopping centre in the same area.

The new Mango Hill Marketplace, to be built at a cost of $25 million beginning early next year, will include a 4000sq m Coles supermarket and will be only 700m from the much bigger Westfield North Lakes. "If we hadn't had the appeal we probably could have started building late last year," Wolfgang Sicklinger, director of Mango Hill Marketplace developer Horizon Property Partners, said of the 18-month court delay.

Richard Lord, managing director of Index Retail Property, said if a developer of a $20 million project had to pay $1 million in legal fees, he had to recover it through more rent and there was the potential for that to be passed on to shoppers.

"There's a flow-on effect," he said.

"Because the cost of the development is more, the rent is more, so businesses have to turn over more - they've got to have more customers or increase their prices."

Mr Lord said the arrival of a competitor usually had a 20-25 per cent impact on an existing supermarket's business.

A Westfield spokeswoman said submissions or appeals were made on a case-by-case basis and action taken based on planning grounds.

Budget supermarket chain Aldi has called on the State Government to take the heat out of the battle for the grocery dollar by releasing new development sites so consumers have more choice.

The chain, which has 67 Queensland stores, wants state planning reforms to boost the amount of land available for supermarket development.

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NEW QUEENSLAND SHOPPING CENTRE AND SUPERMARKET PROJECTS

IN LIMBO (Brisbane, Moreton, Logan, Gold Coast, Mackay, Townsville, Cairns)
APPROVED (Brisbane, Moreton, Logan, Sunshine Coast, Gold Coast, Toowoomba)
PLANNED (Moreton, Gold Coast)

IN LIMBO
BRISBANE NORTHSIDE

North Lakes: Costco, service station, restaurant and hotel.

Approved by Moreton Bay Regional Council in August. Westfield and Drake Supermarkets have appealed to Planning and Environment Court. State Government considering using call-in powers to prevent a legal battle.

Plans for 14,000 sq m store and 750 car parks.

Brendale Shopping Centre, 646 South Pine Road

Under appeal in Planning and Environment Court, with Comiskey Group appealing against Moreton Bay Regional Council's refusal of the development application.

A proposal for a shopping centre including a 3200 sq m Woolworths supermarket and 1374 sq m of specialty shops.

Chermside Westfield expansion

Westfield is appealing the Brisbane City Council's condition that the latest expansion includes free car parking. Appeal to be heard April 2013.

 
BRISBANE SOUTHSIDE

Logan Reserve: new shopping centre development at 468-482 Chambers Flat Road.

Is under appeal by Stephen Family Pastoral Company after its development application was refused by Logan City Council last year.

 
GOLD COAST

Helensvale: a proposed residential and retail staged development at Dreamworld Drive.

Is under appeal by Westfield after the development was approved by Gold Coast City Council in September.

Proposed as part of the residential application is a future 2000-3000sq m retail development, including fast food outlets.

Nerang shopping centre extension, Station Street and Gilston Road

Gold Coast City Council approved the shopping centre, offices and cinema expansion. Westfield appealed. Awaiting a negotiated decision application.

 
MACKAY

North Mackay: new stage of the Northern Beaches shopping centre.

The development application by Stockwell was approved in August last year, but then appealed by Lend Lease Real Estate Investments in 2010. Developer still deciding what to include in expansion.

 
TOWNSVILLE

Stockland North Shore shopping centre expansion, Main St, Burdell

Application was approved by Townsville City Council but is now under appeal.

Stockland plans to extend the existing shopping centre. It has withdrawn its earlier plans for a supermarket there. Plans for a discount department store are still under appeal.

Willows Shopping Centre extension, 13 Hervey Range Rd, Thuringowa Central

Plans by Dexus Wholesale Property were approved by Townsville City Council but are under appeal by Stockland. Due back in court next month.

 
CAIRNS

Redlynch Central Shopping Centre expansion

Council approval for the $15 million expansion to include a bigger Woolworths, 4500 sq m new anchor tenant and new speciality stores has been appealed in the Planning and Environment Court by other shopping centre owners.

Woolworths, Gordonvale.

This proposal for a new shopping centre was rejected by Cairns Regional Council - and that decision was appealed in the Planning and Environment Court. Appeal pending.

 

APPROVED

BRISBANE NORTHSIDE

Mango Hill Marketplace, Halpine Dr and Anzac Ave

Approved last month after Westfield lost its appeal in the Planning and Environment Court against the shopping centre development by Horizon Property Partners.

Plans for a 3920 sq m Coles supermarket and specialty retail space with parking for 412 vehicles. The $25 million project would be just 700m from Westfield North Lakes.

Everton Park Shopping Centre, Stafford Rd

Approved in August by Brisbane City Council. Westfield had opposed the plans in council submissions.

The project is for a Woolworths supermarket and Masters hardware store at an old distribution centre at Everton Park plus some multi-unit dwellings.

Aldi, Taigum.

Approved and under construction. Westfield had appealed, but withdrew objections last December. Planning and Environment Court approved the development in February, subject to conditions.

Due to open by Easter 2013.

 
BRISBANE SOUTHSIDE

Rochedale Town Centre

Approved by Brisbane City Council. Westfield's submission opposing it was lodged too late.

A $500 million Watpac development with major retail, cinemas, dining and entertainment.

Woolworths Doolandella, Blunder Road

Woolworths won an appeal in February against an initial refusal of its development application by the Brisbane City Council.

Planned is a 3000 sq m centre with a supermarket and specialty retail shops, plus the removal of a park to accommodate up to 173 car spaces.

Garden City Westfield expansion.

Approved, with construction start planned for sometime in 2013.

 

 
LOGAN

Woolworths shopping complex, Johanna St, Jimboomba

Stockland's planned refurbishment of its existing centre on Cusack Lane and a new 21,556 sq m shopping complex next door on Johanna Strett was approved in 2009, appealed by local childcare centre owners, but then that appeal was dismissed in 2011.

SUNSHINE COAST

Kawana Shoppingworld

The $73 million redevelopment by Mirvac is an 8900 sq m expansion, including 70 new retailers and 200 extra car parks. It will take two years to construct

GOLD COAST

Carrara: Emerald Lakes shopping centre

Approved after Woolworths' property division, Fabcot, won an appeal last December against Gold Coast City Council's rejection of its 2010 development application .

Plans for a 4070 sq m shopping centre, with a 3200 sq m Woolworths supermarket.

North Ormeau: Coles shopping centre development on Eggersdorf Road

Was initially approved by Gold Coast City Council, with conditions, in March last year. But Westfield appealed in the Planning and Environment Court. The dispute was recently resolved between the parties.

Pimpama shopping centre, Dixon Drive

Approved by the council but Westfield appealed that approval. The development was then approved, subject to conditions, by the Planning and Environment Court in May.

Will include a 5250sq m shopping centre and 2500 sq m supermarket. But the supermarket has been ordered not to start trading before January 1 2014.

Upper Coomera shopping centre, City Centre Drive

Development application by Westfield and Aldi approved by council, but then appealed by another property developer. Appeal partly upheld in Planning and Environment Court late last year - meaning the development can go ahead but with new conditions.

Plans include a shopping centre, fast food premises, tavern, liquor bar, cafe, service station.

Upper Coomera: Small neighbourhood shopping centre on Finnegan Way

Developer Driftsail won approval from the Gold Coast City Council. Westfield appealed that approval. Now resolved. Site recently sold to a new developer planning to go ahead with the development.

TOOWOOMBA

Toowoomba Northpoint shopping centre, corner Ruthven and North Streets

Approved. Due for completion late next year.

Shopping centre to include 3650 sq m Coles supermarket and 20 specialty shops.

PLANNED

BRISBANE NORTHSIDE

Expansion of Westfield North Lakes Shopping Centre.

The application is before Moreton Bay Regional Council.

The expansion would include 100 additional stores, including a new department store, cinema complex and the northside's first Ikea.

GOLD COAST

Coomera Town Centre at Foxwell Road, next to Coomera railway station

Westfield plans to lodge a development application mid-next year, but says the $1 billion development will not progress until a dispute over council infrastructure charges is resolved.

Westfield, with QIC, has had long-term plans to build this major development, but it may still be years away. Would include a Myer, two discount department stores, two supermarkets, up to 10 mini-majors and 150 specialty shops.

Pacific Fair, Broadbeach

Planned $580 million facelift planned by the centre's new owners AMP Capital Shopping Centres. To include Woolworths and Big W, David Jones, with existing Coles and Target stores to be increased in size. Extra 1500 parking spaces. To be completed by 2016.