Greater Shepparton City Council’s claim the developer of the Shepparton North IGA site appeared to be warehousing a planning permit has been rejected by the Victorian Civil and Administrative Tribunal.
The permit held by Shepparton Pty Ltd is for a $63 million development at 117-193 Numurkah Rd, Shepparton, including two supermarkets and bottle shops, a gym, medical centre and community centre.
The permit was issued in 2018 and in August 2022 the developer requested council grant a further two years to start the development, before making an application to VCAT.
In January the tribunal heard an agreement had been reached with Coles to lease the second full-line supermarket, alongside IGA, which will remain as a tenant.
VCAT member Kerrie Birtwistle handed down her decision on February 20 to approve the developer’s application, meaning Shepparton Pty Ltd now has until August 4, 2024 to start the development and until August 4, 2026 to complete it.
Ms Birtwistle found the developer had shown “active intent to act on the permit” and that strategic planning processes for the Shepparton North Activity Centre had delayed progress, as well as “commercial challenges” in obtaining a tenant for the second supermarket.
She said she had some confidence in the developer being in a position to begin the development within the extended time frame.
Shepparton Pty Ltd owner Sam Herszberg said he was pleased with VCAT’s decision.
“This will be the epicentre of commercial activity in north Shepparton and we have worked hard to secure this outcome,” he said.
“VCAT recognises we have not been engaging in ‘warehousing’ and that our singular purpose is to create the $63 million super-centre in north Shepparton.”
Mr Herszberg said Shepparton Pty Ltd was working to best meet the needs of both the supermarkets and shoppers, and the decision acknowledged the work already done.
“We hope that councillors and the council executive will work with us now to complete this major development for the community in north Shepparton as soon as possible,” he said.
City of Greater Shepparton Mayor Shane Sali said he always encouraged business development that delivered jobs in the region.
“I’m really comfortable with the process available to people if and when they lodge permits and whether or not they are approved, that they’ve got the means to challenge that,” he said.
“VCAT has made a ruling and we will act on that.”
An application by the developer for costs against the council was refused.