A proposal to expand Cromwell's business resource area is causing a rift between residents and business owners in the town.
The Central Otago District Council's hearings panel heard submissions on a Central Otago District Plan change, to include areas west and south of Cromwell's existing retail area within a business zone, at a meeting in Alexandra yesterday.
Forty-eight submissions were lodged by 22 individuals, companies and business owners about plan change 4A, which would rezone residential land into business.
Foodstuffs (South Island) Ltd property development manager Rebecca Parish opposed the change, which she said would cause significant adverse effects on existing retail.
"It could accommodate a second supermarket development, which could significantly undermine the vibrancy and vitality of the mall, and of the existing New World supermarket," she said.
Foodstuffs owns New World, which is Cromwell's only supermarket.
Panel member Tony Lepper said Foodstuffs' opposition was "thinly disguised anti-competition".
Widgeon Enterprises Ltd's survey consultant Charlie Hughes said it was "rich" for Foodstuffs to oppose expansion of Cromwell's business area, as its New World supermarket drew business away from the town's mall when it was established.
Widgeon, which owns land subject to the change and lodged 15 submissions in support of the proposal, said existing business land was fully occupied and additional retail and business outlets were being forced to set up within the town's industrial area further away.
"Tenants of the mall have their blinkers on and are scared of growth, change and competition," Mr Hughes said.
Some submitters opposed to the change said enough land was allocated for business in Cromwell, and they criticised the town's community board and the council for not properly researching the proposal's potential impact.
They said a better option would be to extend car parking towards the town's fruit sign and make the mall more visible from main highways.
Others wanted access from the main highways into the new area restricted, so motorists would have to pass through existing retail areas first.
Retail sections of less than 600sq m, which could be created under the plan change, would be "the death of the Cromwell Mall", submitters A and E Properties and Gary Anderson said.
Submitter Robert Galvin said the proposed change would result in an ugly view of Cromwell.
"Cromwell does not need the [back]-end of rows of tin light-industrial buildings mooning at the tens of thousands of vehicles passing by every week," he said.
A planning report recommended the council accept submissions in support of its change, and reject others.
It recommended the plan change be confirmed subject to two minor variations, which dealt with the size of a buffer zone between residential and business areas.
