Planning and Environment Act 1987
MORELAND PLANNING SCHEME
AMENDMENT C139
EXPLANATORY REPORT
Who is the planning authority?
This combined planning scheme amendment and planning permit application has been
prepared by the Moreland City Council who is the planning authority for this amendment.
The amendment has been made at the request of Environmental Resources Management
Australia (ERM) Pty Ltd, acting on behalf of Coles Group Property Developments Ltd, owner
of the land.
The applicant for the permit is ERM Pty Ltd on behalf of Coles Group Property
Developments Ltd.
Land affected by the amendment
The land affected by the amendment and planning permit application MPS/2012/608 is 174
and 180 – 196 Gaffney Street and 1 Lens Street, Coburg North (the land), located on the
north east corner of Gaffney and Sussex Streets. Refer to the map below:
The land is irregular in shape and has an area of approximately 1.75ha. It currently
comprises vacant buildings associated with former industrial/warehouse uses. Most
recently, a Bunning’s Warehouse occupied the site approximately three years ago.
The land is currently located in the Industrial 3 Zone, and at the periphery of the North
Coburg Core Industrial and Employment Precinct (CIEP), which abuts the site to the north
and east.
To the south and west of the land on the opposite sides of Gaffney and Sussex Streets
there are established residential areas comprising predominantly single storey dwellings.
The Combined Permit and Amendment Process
The amendment has been prepared under Section 96A of the Planning and Environment
Act 1987 (the Act) to facilitate a combined planning permit and amendment process.
Section 96A of the Act provides for a planning authority to consider an application for a
planning permit concurrently with an amendment to a planning scheme. Notice must be
given both of the preparation of the amendment and of the permit application.
The Minister may grant a permit at the same time as the amendment is approved.
What the amendment does
Specifically, the amendment:
 Rezones the land from an Industrial 3 Zone (IN3Z) to a Commercial 2 Zone (C2Z); and
 Applies an Environmental Audit Overlay (EAO) to the land.
What the permit does
The planning permit application (MPS/2012/608) is for the use and development of land for
a supermarket, shops, restaurant, offices, medical centre and car parking with associated
reduction in the standard car parking requirements and creation of access to a road in a
Road Zone Category 1.
The permit will enable the use and development of the land which will serve the local
community as well as employees of the adjoining industrial area comprising the following:
 Offices with a combined area of 760m ;
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 Medical centre (5 practitioners);
 Shops (including a full line supermarket of 4,000m );
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 Office for new businesses and community groups (50m );
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 Retail premises with an area of 1,200m (including restaurant); and
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 Public toilets.
Strategic assessment of the amendment

Why is the amendment required?
The amendment is required to facilitate the use and development of a currently vacant
site for the use and development of a full line supermarket, shops, offices and a medical
centre and facilitate the creation of a Neighbourhood Activity Centre.
Rezoning
The amendment is required because the use of the land for a shop, and office uses
(including a medical centre) which have a leasable floor area greater than 1,800m² are
prohibited in the IN3Z.
The use of the C2Z will require a planning permit to be sought to increase the floor area
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greater than 1800m . This will ensure that the development will be contained to a full line
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supermarket of 4,000m and speciality shops of 1,200m only and conform with the
hierarchy of activity centres in Moreland.
Environmental Audit Overlay
The application of an EAO on the land is required to recognise that the land was formerly
used for industrial purposes and therefore there is a likelihood of potential contamination.
As such, the application of the EAO is required to ensure that an environmental site
investigation will be carried out and remedial work undertaken if necessary to clear the
land of any contamination should the site ever be used for a sensitive use.
Planning Permit
Finally, the amendment is required in order to facilitate the concurrent issuing of a
planning permit for a redevelopment of the land for the purpose of a Neighbourhood
Activity Centre.
A planning permit is proposed to be issued for the following:
 Use of the land for a Supermarket, Shop, Retail premises, Restaurant;
 To construct / carry out buildings and works associated with the development
 A reduction in the standard car parking requirements of the Planning Scheme;
 Creation of access from the land to a road in the Road Zone, Category 1 (Gaffney
Street).
Conditions of the permit have been prepared by Council to ensure the development
responds to State and local policy, and relevant planning scheme provisions and
submissions received from individuals and referral agencies as a result of public
exhibition.

How does the amendment implement the objectives of planning in Victoria?
The amendment provides for the fair, orderly, economic and sustainable use and
development of land by applying and implementing the appropriate provisions of the
Moreland Planning Scheme to guide the use and development of the land.
The amendment is consistent with the following objectives of Section 4(1) of the Act:
(a) to provide for the fair, orderly, economic and sustainable use, and development of
land;
(c) to secure a pleasant, efficient and safe working, living and recreational environment
for all Victorians and visitors to Victoria;
(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 paragraphs (a),
(b), (c), (d) and (e);
(g) to balance the present and future interests of all Victorians.
The amendment provides for the fair, orderly, economic and sustainable use and
development of the land for a Neighbourhood Retail and Business Centre which is not
possible within the parameters of the current planning scheme controls and policies.

How does the amendment address the environmental effects and any
relevant social and economic effects?
Environmental Effects
The proposed development responds to a need for additional supermarket, and business
support services in this part of Coburg North. It will make use of existing physical
infrastructure in the area such as roads, utility services, drainage and public transport.
The proposed centre allows for a mix of uses including supermarket; speciality retail such
as cafes, pharmacy and newsagent; offices such as a bank, accountant, financial
advisor; and a medical centre. A consolidation of services is anticipated to reduce the
overall vehicle travel demand in this part of Coburg North and shift some trips for local
shopping from car based to walking or cycling trips. The land is easily accessible by foot
from the surrounding area and bicycle facilities are proposed to be provided on the site.
In addition, both Gaffney and Sussex Streets provide access to the site for passing traffic,
and there is a bus stop immediately in front of the site. All of these factors combined will
result in a reduction of vehicle usage and the associated environmental impacts.
At present, the land contains virtually no vegetation. New landscaping is proposed
throughout the development area and along Sussex and Gaffney Streets which will
enhance the land and the surrounding neighbourhood.
Further, the following Environmentally Sensitive Design techniques will be incorporated
into the development:
 Minimise building energy use and greenhouse emissions through passive design
strategies;
 Manage solar access to public open spaces to enhance amenity and function
throughout the year;
 Minimise greenhouse emissions associated with energy systems and energy supply;
 On-site waste recycling;
 Rainwater harvesting from roofs for re-use in amenities;
 Bio-filtration in the car park for stormwater run-off;
 Skylights at the supermarket entry;
 Future proofing for an electric vehicle charging point located in the main carpark;
 Designated parking spaces for motorcycles and mopeds;
 Plant and equipment with high efficiency HVAC systems, heat recovery and solar
boost HWS;
 Highly visible bike parking spaces;
 Optimise indoor environmental quality in buildings and structures; and
 Provide landscaping which enhances amenity and contributes to biodiversity.
A preliminary site contamination assessment was submitted as part of the exhibited
documentation. The inclusion of the site in an EAO will ensure that that site
contamination would be appropriately remediated should the site ever be used for a
sensitive use. In the interim, the preliminary site assessment has concluded that the site
is suitable for the intended development. Further assessment is required, depending on
the final volume of soil intended for excavation and off-site disposal.
Social Effects
The proposed development will have the following positive social benefits:
 reduced vehicle trips which is convenient for surrounding residents;
 reduced vehicle trips for workers of the adjacent industrial employment area who can
link work and shopping trips;
 improved amenities for workers in the adjacent industrial employment area;
 improved access to supermarket, health and business facilities by local residents; and
 improved perception of safety due to increased activity levels;
 access to public toilets; and
 provision of 50m of office space for community meetings.
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Economic Effects
An Economic Impact Assessment has been prepared by Macroplan Dimasi in relation to
the proposed development. Key findings of this assessment are:
 there is no full line supermarket currently located in the Main Trade Area (MTA) of the
land, with a potential demand for another two to three supermarkets in this area;
 the projected impacts on competing supermarkets as a result of the development
would not limit the future viability of any of these traders;
 impacts on the Coburg Principal Activity Centre (PAC) are considered to be minimal,
particularly given the reduction in supermarket floorspace proposed as part of The
Coburg Initiative, and the likely population growth that will occur within the Coburg
PAC, the redevelopment of the Pentridge precinct and the Kodak site;
 there is strong demand for medical and commercial uses at the subject land given its
high accessibility, convenient location, growing population catchment, and abuttal with
to the worker population of the adjoining industrial area;
 there are a number of constraints that restrict the development of the land for industrial
purposes;
 the proposal will generate approximately 230 jobs on site, whereas a traditional
industrial use would generate approximately 35 jobs; and
 the development will have flow on benefits to the adjoining industrial precinct including
an improvement in amenity and convenience services which will provide an impetus for
further industrial investment in the precinct.

Does the amendment address relevant bushfire risk?
It is considered that there is no bushfire risk associated with the proposed development.

Does the amendment comply with the requirements of any Minister’s
Direction applicable to the amendment?
The Amendment is consistent with the Ministerial Direction on the Form and Content of
Planning Schemes under Section 7(5) of the Act.
The previous industrial use of the land meets the definition of potentially contaminated
land defined in Ministerial Direction No 1 – Potentially Contaminated Land and an EAO
will be applied to the land in accordance with Ministerial Direction No 1.
Ministerial Direction No 9 – Metropolitan Strategy, requires that Planning Scheme
Amendments must have regard to the Metropolitan Strategy. This amendment is
considered to be consistent with the directions and policies of the Strategy as discussed
below.
In accordance with Ministerial Direction No 11 - Strategic Assessment of Amendments a
strategic assessment against planning policies and controls has been undertaken to
provide a response to potential outcomes of the amendment.

How does the amendment support or implement the State Planning Policy
Framework and any adopted State policy?
The amendment is consistent with the State Planning Policy Framework in the following
respects:
Clause 11.01-2 – Activity Centre Planning encourages the concentration of a mix of
uses into activity centres which are highly accessible to the community. The new
neighbourhood and business retail centre on this site will provide a focus for business,
shopping and health facilities in a highly accessible location by car, bike and walking.
The convenience shopping and business support services will also provide strong
business synergies with the adjoining industrial employment area.
Clause 13 – Environmental Risks seeks that planning should provide best practice
environmental management approaches. At Clause 13.03 (Soil Degradation) it states that
applicants are required to appropriately assess a site’s potential for contamination, while
planning must consider the relevance of SEPP and Ministerial Direction No. 1 –
Potentially contaminated land.
The amendment is cognisant of environmental risks, more particularly soil contamination
with a past history of industrial use. A preliminary site assessment and ground water
investigation has been carried out by Douglas Partners and an EAO is proposed to apply
to the land.
Clause 17.01-2 – Out of Centre Development for Metropolitan Melbourne requires
that out-of-centre proposals be only considered where the proposed use or development
is of net community benefit in the region served by the proposal. The proposed
development is considered to result in a significant net community benefit, having regard
to all relevant considerations which relate to economic, social and environmental impacts.
Clause 17.02-1 – Industrial Land Development seeks to ensure the availability of land
for industry. The amendment will not impact on the on-going viability of the adjoining
industrial land and on the contrary will appropriately provide a buffer to the adjoining
residential areas on the opposite side of Gaffney and Sussex Streets.

How does the amendment support or implement the Local Planning Policy
Framework, and specifically the Municipal Strategic Statement?
Clause 21.02-6 – Moreland’s Economy seeks to provide jobs in the professional sector
especially in the health, property and business sectors to reflect the decline in
manufacturing industry. The new Neighbourhood Retail and Business Centre will assist
in creating jobs in the health and business sectors to meet this changing trend in
employment needs.
Clause 21.04-2 – Focus Areas for Change refers to the existing network of activity
centres and urban villages in Moreland. Although the site is not located in any of these
areas, the proposal meets the ‘sequential test’ which is relevant to establishing out-ofcentre development. The ‘sequential test’ was outlined in the Retail Policy Review
Discussion Paper (2008) prepared by the then Department of Planning and Community
Development and presents a series of steps to determine whether new centre proposals
are appropriate (from a net community benefit perspective). An Economic Assessment
prepared by Macroplan assessed the application against the sequential test. Key
findings from the test are:
Strategic merits – there is an overwhelming need for additional supermarket floorspace in
this part of Coburg North, and therefore the proposal will result in a minimal impact to
existing retail facilities in Moreland including in the Coburg PAC. There is also a need for
business support services and a medical centre in this location. Other strategic matters
are discussed in later sections.
Alternative sites - there are no alternative sites available in the area to accommodate the
size and nature of the proposed development.
Local context – The land is suitable for this type of development given its main road
exposure, flat topography, ability to serve both the adjoining residential and employment
areas, and ability to provide an appropriate land use buffer between the industrial uses to
the north and east, and residential areas to the south and west. Further, the proposed
development will enhance the amenity and provide an impetus for further development of
the adjoining industrial area.
It is also noted that on the 12 March 2014, Council adopted the Moreland Activity Centre
Framework, which designates the corner of Sussex St and Gaffney Street as a
Neighbourhood Activity Centre.
Clause 21.05-2 - Industry and Commerce locates the site at the periphery of the
Coburg North Core Industry and Employment Precinct (CIEP). It highlights the
importance of improving the appearance and function of Industry and Employment areas,
the clustering of services, and the importance of managing the interface between
industrial and residential uses. The proposed development will provide a cluster of a mix
of services and improve the appearance and function of adjoining CIEP including by
stimulating further development in this area. The proposal will also provide an
appropriate buffer between the adjoining industrial development in the CIEP, and
residential uses to the south and west.
Clause 21.05-3 – Retail seeks to increase the range and accessibility of shops and
services available to the community and create pleasant, safe and flourishing centres.
The proposal will achieve this by providing retail, commercial and community facilities in
an area which is lacking these services, and creating an attractive and functional
pedestrian environment.
Clause 21.05-7 – Community and Leisure Services and Facilities seeks to provide an
equal distribution of community facilities. The proposal will achieve this by providing a
medical centre and other uses (such as a post office and banks) and public toilets to
meet the community’s needs.
Clause 22.03 – Industry and Employment encourages the continuation of industrial and
other employment generating commercial uses and opportunities for a wider range of
employment related uses. The Moreland Industrial Land Use Strategy 2004 (MILUS) is a
reference document at this Clause.
The proposal responds to key consideration of the MILUS, as follows:
 The MILUS focuses on resisting residential encroachment into industrial areas; the
rezoning is to Commercial 2 Zone which prohibits residential uses.
 The proposal will provide essential business support services to employees of the
industrial area, a direction supported in the MILUS.
 A permit has previously been issued for the site which allows restricted retail premises.
The site was also previously occupied by a Bunnings store (approximately 3 years
ago). Therefore the use of the site for industrial uses ceased some time ago. Further
the permit previously issued demonstrates that (subject to relevant considerations) the
use of the site for non-industrial uses is appropriate.
 The proposal will result in a net community benefit, particularly in terms of:
- creating increased jobs than would otherwise be created by traditional industrial
development on the site;
- revitalising a long-term vacant industrial site;
- providing an impetus for further industrial development in the adjoining industrial
area;
- providing for reduced vehicle trips for shoppers and adjoining workers who can link
shopping and working trips;
- providing improved amenities and business support services to the adjoining
industrial area; and
- providing an improved perception of safety due to increased activity levels.

Does the amendment make proper use of the Victoria Planning Provisions?
The B2Z allows the mix of uses which make up the proposed development to establish on
the land providing the opportunity to facilitate the integrated provision of new commercial,
retail and community uses whilst providing sufficient safeguards for maintaining the
amenity of adjoining residential areas. Having regard to the site’s location at the edge of
the Coburg CIEP, it is considered that the B2Z will provide an appropriate transitionary
zone between the industrial zoned land to the north and south, and residential zoned land
to the south and west.

How does the amendment address the views of any relevant agency?
VicRoads was consulted in the design phase of the development and provided some
requirements for permit conditions in their submission. These were considered by the
Planning Panel and incorporated into the final planning permit.
The amendment was referred to the relevant agencies for their consideration during the
exhibition period.

Does the amendment address relevant requirements of the Transport
Integration Act 2010?
The amendment provides for an appropriate infill development serving the local
population capitalising on key movement networks along Gaffney and Sussex Streets
and the local bus network. The amendment is not considered to have a significant impact
on the transport system. To this end the location, access and integration of uses meets
relevant 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?
There are no significant cost implications for the responsible authority arising from this
proposed amendment.
Statutory costs associated with the amendment will be paid by the proponent while
Council will administer the planning scheme amendment process.
Where you may inspect this Amendment
The amendment is available for public inspection, free of charge, during office hours at the
following places:
 Moreland City Council, Moreland Civic Centre, 90 Bell Street, Coburg.
 Online: http://planningschemes.dpcd.vic.gov.au/updates-and-amendments