Decision breaks Dunedin retailers' stranglehold

Friday 20th July 2001

WAREHOUSE DUNEDIN: Can finally go ahead

By Chris Hutching

The Warehouse has won an Environment Court appeal to set up in South Dunedin after the key objector, the Dunedin City Council, decided this week to waive its right for a further appeal to the High Court.

The Warehouse is developing several sites around the country as part of its expansion programme.

The recent Dunedin resource consent hearings proved a testing ground for that city's district plan rules as well as signaling the final chapter in a property development on the former Caledonian sports grounds on the corner of Hillside Rd and Andersons Bay Rd that has taken years to get through planning hurdles.

The decision breaks the stranglehold of main street retailers who have pressured the council to maintain a restrictive planning policy for the city.

The objections of city planners to the proposed The Warehouse in South Dunedin focused on anxieties about retail decentralisation destroying the special character of the central business district and its heritage buildings.

A recent Otago Daily Times editorial supported concerns about the loss of the main street character of the retail precinct around George St noting a number of other recent "drive to" developments such as Briscoes, Rebel Sports, Noel Leemings and Spotlight. The newspaper claimed that even though the tide has turned against such developments in Europe and the US, opponents of such developments in New Zealand may simply be like King Canute, vainly trying to stem the tide.

Council planning staff had argued the effect would be considerable in a city where population is static or declining.

But this week city councillor Syd Brown, chairman of the council's planning and environment committee said he took consolation from Environment Court Judge Jon Jackson's comments that the latest The Warehouse decision should not create a precedent for further "out of zone" developments.

Mr Brown said there was a limit to the council's ability to fund amenities like street furniture and landscape planting. Mr Brown also cited Christchurch as an example of where he believed suburban mall competition has "devastated" the central shopping area and where retailers, council and developers were having to "buy back" customers. He was referring to various promotional initiatives and new developments in central Christchurch.

At the same time, Mr Brown said he was heartened that a major investor like The Warehouse was prepared to invest in Dunedin and he welcomed other businesses that would be prepared to work within the guidelines of the district plan.

The South Dunedin site earmarked for The Warehouse was also the subject of earlier resource consent battles involving Foodstuffs (South Island) Ltd, which owns the land and the recently built Pak'N Save supermarket on site. It supported The Warehouse appeal.

During the Environment Court appeal hearing in February one of the expert witnesses appearing on behalf of the Dunedin City Council was Auckland retail consultant Doug Fairgray who calculated a The Warehouse store in South Dunedin could capture about $30 million or 10% of Dunedin's retail market excluding food and groceries. Other evidence suggested 4%.

He dismissed The Warehouse claims about the creation of jobs from new retail developments and emphasised the redistributive effect that generally occurred. Mr Fairgray told the hearing the city centre would retain its dominance but there would be a significant draw-off from existing stores' patronage to the new Warehouse store. His figures were challenged by counsel for The Warehouse.

But Judge Jon Jackson overturned the previous decision by the Dunedin City Council in declining the development and found while there would be adverse effects on existing retailers in South Dunedin and the central business district but the overall benefits would outweigh those.

The 7400sq m The Warehouse store costing $10 million will be one of the largest Warehouse stores in the country employing about 50 full-time and 100 part-time workers. It could be open by next Easter if it goes ahead.

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