Coles Palmwoods may be rejected by Sunshine Coast Council

A developer is determined for residents of a Sunshine Coast suburb to receive a highly favoured supermarket, though the council say the group has “failed to be adequately demonstrate” how they would overcome key issues.

The proposed Coles Palmwoods is up in the air.

A developer was “shocked” when he received news his proposal to construct a Sunshine Coast suburb’s first supermarket may be rejected by council.

Town planners Project Urban lodged the development application with Sunshine Coast Council to build a major supermarket in Palmwoods on behalf of NeuBau Group in July, 2023.

Plans show the new supermarket would be a single-storey 3869sqm building with adjoining bottle shop on 22 Palmwoods-Montville Rd.

The current closest full-line supermarkets are Coles Nambour, and White’s IGA Forest Glen, both about 10km or a 12-15 minute drive away from Palmwoods.

NeuBau Group director Tim Reed said the project reached a significant milestone after receiving approval on May 22 from the Department of Transport and Main Roads for roundabout access and further network upgrades for the surrounding area.

“This is a great and significant achievement for the project as the state accepts our proposed outcomes for servicing a full-line supermarket on the site,” Mr Reed said.

Site plan for a new Coles proposed for Palmwoods.

This was the most favourable outcome made known by the community after working with the department when the state initially proposed to incorporate traffic lights instead.

Mr Reed said planners from Project Urban had been advised by council staff assessing the application they will recommend to refuse the proposal.

The planners were notified prior to latest council election.

“We are hopeful the local councillors, not just in palmwoods but across the Coast, aren’t quite as out of touch with the local community in Palmwoods, as what it appears the council staff assessing the application and their hierarchy are”” he said.

The group was shocked by the initial update from council as well as many residents who were told of the potential refusal.

Residents had sent more than 200 letters of support during the community consultation period equating to 95 per cent of submissions being in favour of the proposal.

He previously stated the catchment area has a population of more than 16,000 and it is uncommon for a suburb of 8000 people, half the size of Palmwoods, to not have a supermarket.

If the application is ultimately refused by council, NeuBau Group will look to appeal the decision in the Planning and Environment Court, Mr Reed said.

“We have a committed national operator with an agreement to lease the property, we have a build ready site and funds to complete, we have the state government agreeing to how it is accessed and we really want to and are ready to deliver an outcome that the public have been deprived of for over 15 years,” Mr Reed said.

Artist concepts of the new Coles proposed for Palmwoods, including shopfront and Click and Collect area.

He labelled the proposal as an important project for residents who wish for the supermarket to be built, in preference to 55 townhouses which were already approved by council.

A spokeswoman for Sunshine Coast Council said “no decision has yet been made for this application”.

“The application has recently moved into the decision stage of the assessment process after undergoing public notification,” the spokeswoman said.

“The assessment of this application is being carried out against the relevant provisions of council’s planning scheme and requirements under the Planning Act 2016.

“As with all development applications, the application will be thoroughly assessed on its individual merits and the submissions received will be considered prior to council’s final determination.

“Council officers identified a number of key assessment issues against the Sunshine Coast Planning Scheme and this was included in council’s information request issued to the applicant on July 31, 2023.

“These key assessment issues include land use/zoning conflicts and character and amenity. “These key assessment issues are still outstanding and have failed to be adequately demonstrated by the applicant.”

Originally published as Coles Palmwoods may be rejected by Sunshine Coast Council