Dubbo road works: Coles Express takes government to court

Major road works in a regional NSW city have triggered a costly legal battle, traffic gridlock and massive financial losses for struggling small businesses.

The upgrading of two major intersections in Dubbo has triggered a costly legal battle between a service station owner and the NSW Government as small businesses in the city speak out about huge losses they’re racking up because of the road works.

Roundabouts at the Newell and Mitchell Highway intersection in West Dubbo, and Cobra and Fitzroy Street intersection in South Dubbo, are being replaced with traffic lights as part of the road works which the government claims will improve traffic congestion and road safety.

The owners of this Coles Express servo in Dubbo took Transport for NSW to court and won. Picture: Ryan Young

To carry out the upgrades, the government had to compulsorily acquire some parts of land located near the old roundabouts, including 15.3 square metres of the Coles Express service station site at 131 Cobra Street.

Eureka Operations, the owner of Coles Express, objected to NSW Valuer General’s determination that $164,000 in compensation was payable for the land and launched legal action against Transport for NSW in the NSW Land and Environment Court.

According to court documents, traffic experts concluded there would be a 47.2 per cent reduction in the number of vehicles entering Coles Express after the intersection was upgraded because three existing exit points would be removed.

After a three-day hearing in December, Justice Sandra Duggan ordered the government to pay Coles Express $491,442 in compensation “for the market value of the acquired land” and “the decrease in value of … adjoining land”.

The government was also ordered to pay Coles Express another $141,628 for legal, valuation and traffic impact evidence gathering costs the company incurred during the court battle.

A Transport for NSW spokeswoman said the organisation was “still considering the legal implications of the recent Land and Environment Court decision”.

“The project is on track for completion before the end of this year and will be fully funded,” she said.

“The upgrade of the Cobra Street intersection with Fitzroy Street in Dubbo is a key project within the NSW Government’s commitment under Building a Better Dubbo to cut down travel time, create safer roads and ease congestion in and around the city.”

BUSINESSES HIT HARD

Aussie Rural merchandise shop owner Margaret Brown outside the business which has been impacted by major road works in Dubbo. Picture: Ryan Young

Coles Express isn’t the only business unhappy with the government’s handling of the intersection upgrades, with many small businesses in West Dubbo also concerned about the financial hit they’ve received.

Margaret and David Brown own the Aussie Rural merchandise shop on the Victoria Street section of the Mitchell Highway.

They estimate trade is down 35 per cent because of the nearby intersection upgrade work.

“We’ve noticed quite a downturn,” Mrs Brown told The Dubbo News.

“We’ve had customers in here and they’ve all complained about having really long delays on the bridge so they’re trying to avoid coming here.

“David sat on the bridge at midday one day last week for 18 minutes.”

Mrs Brown praised Transport for NSW for keeping her updated about the road works timelines and impacts, however she said no compensation had been offered to struggling small businesses.

“It would have been nice to at least have been offered but there’s been nothing,” she said.

“As far as information goes, they’re quite good.”

CALL FOR MORE SUPPORT

Ted’s Takeaway owners Cath Norberry and Kym Barling have seen their takings drop by half. Picture: Ryan Young

The government offered $31 million in compensation to more than 150 small businesses in Sydney who suffered while a troubled light rail line was constructed near their premises, and the owners of Ted’s Takeaway in Dubbo believe businesses in the bush should be compensated too when major infrastructure developments lead to a loss of trade.

“We’ve had people come and tell us what’s going on but we’ve had nobody say to us ‘we’ll give you compensation or we’ll do this for you’,” Ted’s Takeaway owner Kym Barling said.

“It’s taking too long to come across the big bridge, there’s too much hold up at the lights. There’s nowhere to park.

“Our takings have probably dropped by 50 per cent.”

Mrs Barling said it wasn’t only businesses like hers on Victoria Street suffering, but many in West Dubbo had also voiced concerns about a drop in foot traffic.

“It’s gone on too long,” she said.

“We’ve cut our staff hours back. Any staff that have left we’ve not replaced.”

‘END PRODUCT IS GOING TO BE GOOD’

Alex and David Mendham from Dubbo City Motorycles have lost customers because of the road works. Picture: Ryan Young

Dubbo City Motorycles owner David Mendham said while he believed the intersection upgrades would be good for Dubbo, there was no doubt construction was hitting his businesses bottom line.

“We’re too scared to do the figures at the moment … we’re just finding our walk in traffic is pretty null and void,” Mr Mendham said.

“The farmers with their units and trailers are finding it really difficult to get in and drop off.

“The end product is going to be good, it’s just getting there.”

Mr Mendham said Transport for NSW had been good to deal with, however the length of time it was taking for the project to be completed was concerning.

“We are frustrated but we can’t do anything about it,” he said.

The government previously said the Newell and Mitchell Highway intersection upgrade was expected to be completed in 2020, however now the project is expected to be completed by the end of 2021.

In the latest federal budget, the Australian Government announced it was chipping in $20 million for the upgrade which is expected to cost a total of $40 million.

The upgrade of the Cobra and Fitzory Street intersection is expected to cost $14 million, with construction to be completed by the end of the year.

Transport for NSW was contacted for comment about the lack of compensation for businesses, intersection upgrade budgets and the change in estimated completion date.

No response was forthcoming almost 48 hours after questions were sent by The Dubbo News.