Andersons Bay Rd, in Dunedin, could have two major supermarkets within a kilometre if a proposed new Countdown gets approval from a resource consent committee.
Supermarket operator Progressive Enterprises yesterday made clear if its planned new outlet was approved, it would leave the nearby Woolworths, which it also owns, in position, although rebranded as a Countdown store.
The company took its plans to build the new outlet in South Dunedin, just south of Hillside Rd, to a resource consent committee of city councillors Richard Walls and Kate Wilson, and commissioner David Benson-Pope yesterday.
There were 20 submissions on the issue - 19 opposed and one in support.
The effect of a large building next to the Dunedin Gasworks Museum and the effect of the supermarket on traffic on busy Andersons Bay Rd were among concerns.
Council planner Lianne Darby has recommended granting consent for what was a non-complying activity, a large-scale retail activity in an industrial zone.
Progressive Enterprises' counsel James Gardner-Hopkins told the committee progress had been made with some of the submitters, and their concerns had been addressed.
But the building would present what he described as "a solid backdrop" to the museum, something that could not be avoided if the supermarket was to be viable.
He said the proposal deserved consent.
Although it was an industrial zone, it was surrounded by retail activity, and because of "significant contamination", no other use could justify its remediation.
Progressive Enterprises general manager of property Adrian Walker said the nearby Woolworths store, also owned by the company, would stay open, although it would be rebranded as a Countdown store.
Expansion of that store was considered, but it was restricted by being surrounded by roads.
Two stores of the same brand in close proximity had worked in other areas.
Once the supermarket was built, it would provide up to 120 full-time equivalent jobs.
Registered valuer Stephen Cairns, who is also Otago Regional Council chairman, told the committee there had been significant development in Andersons Bay Rd, because of its high visibility and traffic volume, and large site sizes.
Demand had increased the value of land there "exponentially", and the $500 a square metre cost at the site meant it was "simply out of the realm of affordability for true industrial uses".
Dealing with contamination would cost up to $1.8 million, further confirming it was not suitable for industrial use.
Engineering consultant Lou Robinson, who had also been involved with the gasworks museum, suggested ways to mitigate problems for the museum during construction, which Mr Gardner-Hopkins said the company accepted.
Planner Robert Nixon also raised the museum issue, and noted there was already a large building on the boundary of the museum site.
The supermarket would occupy "exactly the same space".
Other consultants for the company dealt with issues including traffic, the risks of nearby lpg tanks, the effect of construction on the gasworks museum and landscape architecture.
Submitters opposing the plan will give their evidence today.
