Planning and Environment Act 1987 CAMPASPE PLANNING SCHEME AMENDMENT C111camp

PLANNING PERMIT APPLICATION PLN277/2019

EXPLANATORY REPORT

Who is the planning authority?

This amendment has been prepared by the Campaspe Shire Council, which is the planning authority for this amendment. The amendment has been made at the request of Dellcorp Pty Ltd.

Land affected by the amendment

The amendment applies to land at 35-41 Murray Valley Highway, Echuca, which is located on the west side of the Murray Valley Highway, between Ogilvie Avenue and Bridlington Avenue and has an area of 19,986 square metres, as shown below: Figure 1: Location of affected land

The land is affected the Design and Development Overlay (Schedule 3 – Northern and Murray Valley Highway Precinct of Echuca). The site is within the Murray Valley Highway corridor (north of Ogilvie Avenue) in an area which forms part of the town entrance to Echuca. The Murray Valley Highway, adjacent to the site, is a two-lane carriageway located in a 60 metre wide reserve which is operated by VicRoads. There is a signalised intersection with Bridlington Avenue to the north of the site and a large roundabout to the south forming the intersection with Ogilvie Avenue and the Northern Highway. Additionally, a fully signalised intersection was approved under Planning Permit No. TPA188/2015, which was issued on 4 December 2015 and has been extended until 4 December 2021, to allow direct vehicle access between the site at 35-41 Murray Valley Highway and the existing road network that forms part of the residential area to the east. A mapping reference table is attached at Attachment 1 to this Explanatory Report. The amendment is a combined planning permit application and planning scheme amendment under section 96A of the Act. The planning permit application applies to the land affected by the amendment at 35-41 Murray Valley Highway, Echuca.

What the amendment does

The amendment rezones land at 35-41 Murray Valley Highway, Echuca from the Commercial 2 Zone (C2Z) to the Commercial 1 Zone (C1Z) and amends the Schedule to Clause 34.01 (C1Z) to insert a maximum leasable floor area for shop (other than restricted retail premises) of 4,000 square metres (including no more than 3,500 square metres maximum leasable floor area for supermarket) for the land at 35-41 Murray Valley Highway, Echuca. A planning permit is required to use the affected land for a shop that exceeds this maximum leasable floor area. The planning permit application seeks approval for ‘Development of the land for a supermarket and associated retail in the Commercial 1 Zone and Design and Development Overlay Schedule 3 and the creation of an access to a Road Zone Category 1’. The planning permit is attached as a separate document to this Explanatory Report.

Strategic assessment of the amendment

Why is the amendment required?

The amendment is required for a site-specific rezoning of the land at 35-41 Murray Valley Highway, Echuca from C2Z to C1Z to allow the use and development of the land for a supermarket and associated retail development, as well as amending the Schedule to the C1Z to apply a maximum leasable floor area for supermarket of up to 3,500 square metres and a maximum leasable floor area for shop (excluding supermarket) of 500 square metres to this land.

Currently a supermarket with a leasable floor area that exceeds 1,800 square metres is prohibited on this site under the provisions of the C2Z, as it is not in metropolitan Melbourne or the City of Greater Geelong. Therefore, the development of a full-line supermarket at the site (up to 3,500 square metres) is not achievable under the C2Z and a site-specific rezoning to the C1Z is necessary. The Echuca Commercial Strategy 2017 recognises the land at 35-41 Murray Valley Highway as the Neighbourhood Centre for Echuca West, and the suitable location for a full-line supermarket to support the future catchment needs of the Echuca West population.

This amendment has been prepared on the basis of the Echuca Commercial Strategy 2017 and in recognition of the existing planning permit for the land at 35-41 Murray Valley Highway for a smaller supermarket development, along with a signalised intersection approved at this site.

A maximum leasable floor area for shops is proposed to be inserted in the Schedule to the C1Z to respond to Council’s desire to ensure that development at the site does not unreasonably compete with the commercial viability of the Echuca CBD, consistent with the direction of the Echuca Commercial Strategy.

If this was not a combined planning scheme amendment and planning permit application, the use would be as-of-right, the relevant provisions of the scheme could not be fully assessed and the requirements of the relevant referral authorities might not be included.

How does the amendment implement the objectives of planning in Victoria?

Planning schemes in Victoria must seek to achieve the objectives of planning in Victoria as set out in section 4(1) of the Planning and Environment Act 1987. These objectives are as follows:

a) To provide for the fair, orderly, economic and sustainable use and development of land. b) To provide for the protection of natural and man-made resources and the maintenance of ecological processes and genetic diversity. c) To secure a pleasant, efficient and safe working, living and recreational environment for all Victorians and visitors to Victoria. d) To conserve and enhance those buildings, areas or other places which are of scientific, aesthetic, architectural or historical interest, or otherwise of special cultural value. e) To protect public utilities and other assets and enable the orderly provision and coordination of public utilities and other facilities for the benefit of the community. f) To facilitate development in accordance with the objectives set out in the points above. g) To balance the present and future interests of all Victorians.

The amendment implements the objectives of planning in Victoria as it will provide for the orderly planning and ongoing development the area, in line with the relevant planning objectives, which seek to facilitate the fair, orderly, economic and sustainable use and development of land.

The amendment will facilitate a full-line supermarket on the site at 35-41 Murray Valley Highway, Echuca to respond to the existing and emerging future residential population within the surrounding residential growth area of Echuca West, noting the current shortfall in retail floor space that services the town as identified in the Echuca Commercial Strategy 2017 (the Strategy).

The Strategy recognises the land at 35-41 Murray Valley Highway as the Neighbourhood Centre for Echuca West, and the suitable location for a full-line supermarket and specialty retail, with a total retail floorspace that could eventually reach 5,000 square metres (noting the current approval for 2,300 square metres).

The Strategy specifically notes that:

Council has approved the development of a neighbourhood centre at 31 Murray Valley Highway, Echuca West. This will provide 2,300 square metres of retail floorspace including a supermarket of 1,800 square metres. This centre will provide for the grocery and daily shopping needs of the growing population in this part of Echuca, reducing their need to travel. Council may need to consider rezoning the site on the Murray Valley Highway that is currently earmarked in the Planning Scheme as the future site of the Echuca West Neighbourhood Centre to prevent the development of a larger centre in this area.

The rezoning of the site at 35-41 Murray Valley Highway (the Neighbourhood Centre) to Commercial 1 Zone will facilitate the development of a Neighbourhood Centre on this site, consistent with the direction of the Strategy.

Further, the site at 35-41 Murray Valley Highway offers the opportunity for vehicle access to form part of a fully signalised intersection to allow truck and vehicle movements in all directions (approved under Planning Permit No. TPA188/2015 on 4 December 2015). This intersection also provides direct access to the existing road network that forms part of the existing residential area to the east to be serviced by the supermarket.

The proposal will contribute to the sustainable growth and development of Echuca, benefiting rural Victoria more broadly.

How does the amendment address any environmental, social and economic effects?

Environmental Effects

The proposed use of land for commercial purposes is not considered to have any greater environmental impact than any use otherwise permitted on the land under the current C2Z. The subject site is devoid of any significant native vegetation.

In terms of potential environmental impacts as a result of stormwater run-off, a drainage discharge plan was previously required in association with Planning Permit TPA188/2015 and appropriate on- site drainage measures including retention (and Water Sensitive Urban Design) can be accommodated.

Social Effects

The potential commercial land use of the site will contribute to achieving urban consolidation within the area and the social benefits of providing a source of employment and services within proximity of existing and future residential housing areas. The proposal will contribute community benefit to the broader Echuca urban area, as well as tourists, with regard to investment, employment and retail choice and will support the needs of the Echuca West residential growth area. Economic Effects

The Echuca Commercial Strategy 2017 found that there is limited provision of larger full-line supermarkets within this part of Echuca and nominated the land at 35-41 Murray Valley Highway as the Neighbourhood Centre for Echuca West, and the suitable location for a full-line supermarket.

The amendment has been prepared on the basis of a review of the commercial strategy and in recognition of the existing planning permit for the land at 31 Murray Valley Highway for a supermarket development. The land known as part of Lot 1 on PS521707 was originally identified as the preferred site which is reflected in the zoning of the land as C1Z. However, the strategic review through the commercial strategy and the recent issuing of planning permit TPA188/2015 on the land at 35-41 Murray Valley Highway support the development of this site as the Neighbourhood Centre for Echuca West.

The proposal is expected to have positive economic benefits from the proposed uses for the site. More broadly, the local community is likely to benefit from a convenient supermarket development to serve the Echuca West area, which is anticipated to accommodate future residential population growth.

With significant future population growth planned for the area and excellent access to major road infrastructure, including opportunity for a fully signalised intersection along this part of the Murray Valley Highway, the site is well positioned to provide a larger supermarket within this precinct to service existing and future residents.

Additionally, the economic analysis report prepared by Essential Economics Pty Ltd and submitted as part of the amendment identifies an increase in forecast retail spending in Echuca.

The economic analysis combined with the future increased residential population within the Echuca West area, suggest that the proposed centre will be expected to provide for the convenience shopping for existing and future residents in Echuca West (Primary Trade Area), along with the rural areas to the west (Secondary Trade Area).

An assessment of the potential impact on the Echuca CBD has also been undertaken within the economic analysis report and it is considered that the proposed centre is expected to have minimal impact on retail trade in the Echuca CBD when it completes its first full year of trading in 2021. As each year passes beyond the centre’s opening, its relative impact is expected to decrease as over retail spending in the Echuca-Moama area continues to grow.

Overall, the amendment is not expected to have any negative environmental, social or economic impacts.

Does the amendment address relevant bushfire risk?

The amendment is not expected to result in increased risk to life, property, community infrastructure or the natural environment from bushfire, as it rezones the land from C2Z to C1Z within the context of the developing Echuca West growth area. The land is not affected by any existing planning controls which relate to the management of bushfire risk. The Country Fire Authority was formally notified of the amendment but made no submission.

Does the amendment comply with the requirements of any Minister’s Direction applicable to the amendment?

Ministerial Direction 1

Ministerial Direction 1 relates to potentially contaminated land. The proposed commercial development of the site is not considered to be a sensitive land use.

Ministerial Direction 11

Ministerial Direction 11 relates to the Strategic Assessment for Amendments, and the explanatory report is prepared in accordance with the assessment requirements. Ministerial Direction 15

Ministerial Direction 15 relates to the planning scheme amendment process, which is of relevance to the consideration of this amendment.

Ministerial Direction 18

Ministerial Direction 18 relates to the Victoria Planning Authority (VPA) and their role in providing advice for urban development that has been approved or directed by the Minister.

Under Direction 7, the VPA has provided advice to the amendment. The VPA recommended changes to the planning application and a formal response was provided to the VPA on 26 April 2019 to address their concerns. The northern elevation has been redesigned to present as a well-articulated and visually appealing façade incorporating a variety of materials and finishes. Windows and a door have been added and interspersed with green walls to present a softer and more visually appealing interface for greater surveillance.

On the basis of advice from referral authorities an addendum to the Echuca Commercial Strategy 2017 has been included, defining opportunities for further commercial development.

Safe and efficient vehicle and pedestrian access has also been further considered. Subsequent changes have been made to relocate the staff parking area and bin and trolley store areas slightly to the north, which will allow for the footpath to wrap around the corner of the supermarket and create a direct and continuous pedestrian connection to the front of the building and the main road. Furthermore, the proposed development allows opportunity for expansion to the north fronting Coliban Street, if the need arises for further commercial development.

Ministerial Direction – Form and Content of Planning Schemes

The amendment documents are prepared generally in accordance with the requirements of this Ministerial Direction.

How does the amendment support or implement the Planning Policy Framework and any adopted State policy?

The amendment is consistent with, and implements the Planning Policy Framework, in the following ways:

 Clause 11.01-1S (Settlement) seeks to “promote the sustainable growth and development of Victoria and deliver choice and opportunity for all Victorians through a network of settlements.” The proposal will contribute to the growth of Echuca through facilitating the development of the site for a supermarket on a currently underutilised site. Further it will ensure the effective development of land to meet existing and emerging future population needs and provide a source of employment within proximity of where people live.

 Clause 11.01-1R (Settlement – Loddon Mallee North) identifies Echuca as a regional centre and seeks to “plan for and facilitate growth of Echuca and Swan Hill as regional centres and important tourism destinations while considering population change and settlement planning in New South Wales.” It aims to provide for a suitable range of commercial and industrial precincts recognising each settlement’s role. Echuca is a designated regional centre where growth and tourism is promoted to enhance regional Victoria. The proposal will respond to the objectives of this policy, which include to align population and economic growth within Echuca and to realise opportunities to strengthen and diversify the economy.

 Clause 11.02-1 (Supply of Urban Land) seeks to ensure a sufficient supply of land is available for residential, commercial, retail, industrial, recreational, institutional and other community uses. The amendment supports this objective through the provision of a supermarket of an appropriate layout and scale to respond to the needs of the existing and future residential population of the area.  Clause 11.03-1S (Activity Centres) seeks to encourage the concentration of major developments (including retail, residential, commercial and entertainment) into activity centres and build up activity centres as a focus for high-quality development, activity and living. The proposed amendment will support the Neighbourhood Activity Centre role of the site by locating retail offering at an accessible site to serve the surrounding population of Echuca West.

 Clause 15.01 (Built Environment) seeks to create urban environments that are safe, healthy, functional and enjoyable and that contribute to a sense of place and cultural identity. The amendment and permit allow commercial development at the site that contributes to diversity and retail (including supermarket) use within the area. It will provide the surrounding existing and emerging residential community with a well-designed, safe and accessible development along the key highway entrance to Echuca.

 Clause 17.01 (Employment) seeks to protect and strengthen existing and planned employment areas and facilitate growth in a range of employment sectors (including retail). Further it seeks to locate jobs close to where people live and support growth and diversification of rural economies. The proposal will contribute to employment opportunities in the retail sector and is well located to provide access to jobs close to where people live in response to existing and future population growth in the Echuca West area.

 Clause 17.01-1R (Diversified economy – Loddon Mallee North) seeks to “support further diversification of the primary production, service, manufacturing and tourism industries.” The proposal will contribute to the economic viability of the Echuca West area, while not compromising the central retail area of Echuca. In addition to supporting the existing and future residential population, the use will create additional job opportunities for the Echuca community.

 Clause 17.02 (Commercial) seeks to “encourage development that meets the community’s needs for retail, entertainment, office and other commercial services”. This will be achieved through planning for adequate supply of commercial land in appropriate locations and locating commercial uses in existing or planned activity centres. The proposal will respond directly to strategies identified at Clause 17.02-1S as it will “provide new convenience shopping facilities to provide for the needs of the local population” and “provide small scale shopping opportunities that meet the needs of local residents and workers in convenient locations”.

 Clause 17.02-2S (Out-of-centre development) discourages expansion of single use retail, commercial and recreational facilities outside activity centres and seeks to “ensure that out-of- centre proposals are only considered where the proposed use or development is of net benefit to the community in the region served by the proposal or provides small scale shopping opportunities that meet the needs of local residents and workers in convenient locations.” The proposal is of net benefit to the community and will meet the retail (including supermarket) convenience needs of the nearby existing and emerging residential population.

 Clause 18 (Transport) seeks to “ensure an integrated and sustainable transport system that provides access to social and economic opportunities, facilitates economic property, contributes to environmental sustainability, coordinates reliable movements of people and goods, and is safe”. The co-location of a range of uses in the broader area, including a supermarket use within proximity of residential areas, is important in providing integrated facilities and services.

How does the amendment support or implement the Local Planning Policy Framework, and specifically the Municipal Strategic Statement?

The Campaspe Planning Scheme’s Municipal Strategic Statement (MSS) establishes key issues and opportunities within the Shire to be addressed by planning strategies. The proposed rezoning of land at 35-41 Murray Valley Highway to the Commercial 1 Zone with a maximum leasable floor area for shop will facilitate the appropriate development of a Neighbourhood Centre at Echuca West. The rezoning will facilitate a full-line supermarket use at the site to allow for the efficient use of land and will encourage employment opportunities on the Neighbourhood Centre site. These opportunities align with key objectives of the Local Planning Policy Framework. Consistent with the existing policy objectives for the site, the proposal will achieve the following outcomes:  The MSS identifies that Echuca is the largest centre in the Shire and is expected to experience substantial population growth (Clause 21.01 and Clause 21.09), with a range of existing and future growth opportunities.

 Specifically, the Echuca West area is identified to accommodate significant future residential population. Pursuant to Clause 21.02, the staged development of this area needs to allow for efficient service provision, greater choice and market competition. The proposed amendment will facilitate a full-line supermarket within a strategic location to serve both the existing residential population and future residential growth expected on the western side of Murray Valley Highway.

 Further, the proposal will support the vision of the Council Plan (2013-2017) at Clause 21.01-4, which seeks to ensure that Campaspe is a “vibrant place to live, grow and visit, with a thriving, diverse and healthy lifestyle” and promote the land use objective of “sustainable use of land, which encourages population growth whilst ensuring the viability of farming and industry, and development which consolidates and respects the historical built environment”.

 Whilst agricultural production and manufacturing are the largest industries and key economic drivers for the Shire, significant employment growth has occurred in tourism, retailing and the services sector (Clause 21.01 and Clause 21.02). The proposed amendment will contribute to employment growth and job opportunities in Echuca West.

 Clause 21.02-1 identifies that a key challenge is to manage the continued strong residential growth of Echuca and ensure the structured development of commercial centres. The amendment will facilitate a Neighbourhood Centre in Echuca West of a scale that will provide a range of products to serve the local shopping needs, while also retaining the Echuca CBD as the prime shopping centre for Echuca. It is located on a site that is well located to serve established residential areas (to the east of Murray Valley Highway) and substantial future growth area of Echuca West (to the west of Murray Valley Highway).

 The proposal has been designed to provide generous landscape setbacks and a well resolved built form at the site to contribute positively to the highway entrance to Echuca along the Murray Valley Highway, as desired within Clause 21.06-1, which seeks to “require quality urban design, built form and landscaping of new commercial development to enhance the visual qualities of each township, especially at the town entrances”.

 The amendment implements the economic objectives at Clause 21.07, which include “to facilitate a vibrant and dynamic economic environment” and “to ensure that the supply of restricted retail land is adequate to accommodate projected demand, based on population growth and population projections.”

 Clause 21.07-2 relates specifically to commercial development and seeks to locate retail activities on the major highways only on land zoned for commercial purposes. The site is suitably located on commercially zoned land fronting Murray Valley Highway and is line with strategy 3.2 which seeks to “discourage industrial uses from locating in areas zoned Commercial 2 Zone along main roads and state highways”.

 Clause 21.07-2 also seeks to ensure that “restricted retail and other business uses in out of centre locations do not undermine the primary role of traditional town centres”. The amendment is supported by economic analysis, prepared by Essential Economics Pty Ltd, which concludes that the larger format supermarket at this site will not result in a significant impact on retail trade in the existing town centre in Echuca.

 Clause 21.09 identifies a neighbourhood centre is required to service the expanding Echuca West catchment area, as follows: o “A neighbourhood convenience shopping facility is located on the Murray Valley Highway to service the Echuca West area and should be integrated with the highway commercial area around it”. This is reflected within the Echuca Town Structure Plan – Echuca West Residential plan at Clause 21.09-1.

 Additionally, the proposed amendment to this plan being sought as part of this planning scheme amendment is suitable within the context of the recent commercial review undertaken by Council (Echuca Commercial Strategy 2017) which identifies land at 35-41 Murray Valley Highway as the Neighbourhood Centre for Echuca West.

 Clause 21.09-1 also anticipates that “Murray Valley Highway (Ogilvie Avenue) between Sturt Street and Cornelia Creek Road will become increasingly important as an area for restricted retail uses, without compromising the primacy of the CBD.”

 The policy also specifically states that outside the Echuca town centre: o Restricted retail activities will be accommodated on the major highways, only on land zoned for commercial purposes. o Redevelopment of existing highway commercial areas should be promoted. The proposed amendment will limit unrestricted retail (supermarket) uses under the Commercial 1 Zone, while allowing for development of a full-line supermarket and associated shop tenancies within the designated Neighbourhood Centre for Echuca West, without compromising the primacy of the Echuca CBD.

 Further in line with Clause 21.07-2, the site has ability for a direct access point (signalised intersection) off the highway, with parking accommodated onsite, in accordance with strategy 3.3 which seeks to “ensure that the development of commercial and peripheral retail activities in highly accessible locations does not lead to the generation of traffic problems; the fragmentation of existing town centres; or elongated entrances to towns”.

 The amendment request is supported by a detailed traffic assessment, prepared by Traffix Group, which concludes that the proposal will not result in undue traffic impacts. Rather, the proposal includes an upgraded intersection at Murray Valley Highway and Elizabeth Street (previously approved under Planning Permit No. TPA188/2015), with the benefit of providing a signalised intersection providing direct access between the site and the existing residential area off Elizabeth Street to the east of Murray Valley Highway. Combined with the abovementioned economic analysis, it is not considered that the proposal will result in traffic problems or a fragmentation of the existing town centre.

In the context of the strategic directions in the Campaspe Planning Scheme, it is apparent that maintaining the existing zoning on the land has the potential to interfere with Council’s vision for the Echuca West area.

Does the amendment make proper use of the Victoria Planning Provisions?

The amendment makes proper use of the Victorian Planning Provisions, in particular Clause 67 (Applications under Section 96 of the Act) which is the proper mechanism in order to allow a site specific combined planning scheme amendment and planning permit application. The amendment proposes to rezone land at 35-41 Murray Valley Highway from C2Z to C1Z with a maximum leasable floor area for supermarket (3,500 square metres) and shop (500 square metres) in the Schedule to the C1Z. The amendment makes appropriate use of the VPPs. The proposed rezoning of the land to the C1Z will not result in any conflict or duplication of existing controls and responds to an identified need for additional supermarket floor space in Echuca West. The planning permit application makes proper use of relevant Clauses, such as Clause 52.06 (Car Parking), Clause 52.29 (Land Adjacent to a Road Zone, Category 1, or a Public Acquisition Overlay for a Category 1 Road) and Clause 52.34 (Bicycle Facilities). How does the amendment address the views of any relevant agency?

The relevant agencies have been consulted in the amendment process. It is noted that VicRoads was involved in the process for the approval of Planning Permit No. TPA188/2015 regarding the fully signalised intersection along the Murray Valley Highway and alterations to the Murray Valley Highway (Road Zone Category 1).

Regional Roads Victoria (RRV) have provided a written response and stated it is agreeable that the intersection of Elizabeth Street/Murray Valley Highway is to be signalised in the future. This will create greater safety to pedestrian, cyclists and motorists but also accessibility across the Murray Valley Highway, connecting Echuca West to the rest of Echuca.

The Victorian Planning Authority (VPA) have been consulted and a response has been provided. It is considered that the site layout responds appropriately to the site constraints, while allowing for future growth and expansion towards the north.

At exhibition, the VPA, RRV and the Country Fire Authority were notified by Council, as well as further referral authorities such as Coliban Water and Powercor to ensure appropriate notice was given.

Does the amendment address relevant requirements of the Transport Integration Act 2010?

The purpose of the Transport Integration Act 2010 is to create a new framework for the provision of an integrated and sustainable transport system in Victoria. The vision statement recognises the aspirations of Victorians for an integrated and sustainable transport system that contributes to an inclusive, prosperous and environmentally responsible state.

The proposed combined amendment / application will impact on the transport system at a local level. Upgrades are expected to be required to the nearby parts of the road network to accommodate the proposal, as identified in the Traffic Impact Assessment Report prepared by the Traffix Group prepared by the applicant. The proposal will facilitate safe vehicular access to and from the site, via a new controlled intersection from the highway, as well providing safe and accessible pedestrian access via the proposed pathways and links to existing pedestrian routes.

Accordingly, it is considered that the proposal is appropriate in the context of the requirements of the Transport Integration Act 2010.

Resource and administrative costs

 What impact will the new planning provisions have on the resource and administrative costs of the responsible authority? The amendment is expected to have no impact on the resource and administrative costs of the responsible authority.

Where you may inspect this amendment

The amendment can be inspected free of charge at the Campaspe Shire Council website at www.campaspe.vic.gov.au.

The amendment can also be inspected free of charge at the Department of Environment, Land, Water and Planning website at www.planning.vic.gov.au/public-inspection. ATTACHMENT 1 - Mapping reference table

Location Land /Area Affected Mapping Reference Echuca 35-41 Murray Valley Highway, Campaspe C111camp 001znMap10 Echuca Approval