Australian hardware giant Bunnings has secured resource consent from the Dunedin City Council to go ahead with its $27 million project on the 2.3ha Strathallan St site it bought from the council last December.
It is understood the site will become vacant in January when the lease of New Zealand Woolhandlers expires, with demolition to take about two months, construction seven months and the Bunnings store to be fully operational by November or December next year.
Aside from the undisclosed purchase price, about $11 million will be spent on construction and $7 million on stock.
The completed project will be valued about $27 million and employ up to 120 staff.
The granting of the Bunnings application was essentially an exemption for a non-complying activity, in that the industrial 1 zoning restricts retailing activity, but the decision comes with several conditions, mainly surrounding traffic management.
Confirmation of the Dunedin outlet going ahead reflects a more than $100 million investment around New Zealand by Bunnings, with six new stores opened or under development and expected to employ more than 500 staff, additional to the 14 outlets already in operation.
The late-May application was challenged by Dunedin company Duvlin Properties, whose directors and shareholders are Dunedin businessmen Alistair Broad, Tony Clear and Greg Paterson, and was represented by barrister Dr Royden Somerville QC.
The group was unsuccessful in opposing the hearing committee, wanting it replaced by an independent commissioner, on the grounds the council had a "pecuniary interest" in proceedings because it had sold the leasehold site to Bunnings.
In the decision, councillor and committee chairman Colin Weatherall reiterated the committee had taken no part in the council decision to sell the property, nor had a financial interest in the matter.
The resource consent can be appealed in the Environment Court, if lodged within the next 15 days.
Duvlin Ltd had submitted the application should have been considered by a council district plan application, rather than the resource consent process.
Claims were made of insufficient information on retail distribution effects, that the application was not a true exception, it was an inefficient use of industrial land and would set a precedent.
Mr Weatherall said the committee noted the granting of consent for the $10 million retail Mitre 10 Mega building in Andersons Bay Rd, owned by Dunedin businessman Martin Dippie, in the industrial zone meant setting a precedent was not a significant issue.
Mr Broad, of Duvlin Ltd, was contacted yesterday and said he would not be making a decision on appealing until he had fully considered the hearing committee's finding.
The committee found there were adverse effects "of concern" relating to traffic issues, which would be addressed in a revised plan.
However, the overall adverse effects of the proposal were "no more than minor".
The large roof, visible to surrounding elevated suburbs, will be an off-white colour to avoid "undue glare issues".
Outside the resource consent application, Bunnings has said in the past the building would be painted dark green.
Conditions for the resource consent include that the retail space not be more than 10% of the total floor area and that Bunnings submit a plan for approval covering car access and parking issues.
