ATTACHMENT A PES - MCDONALDS RESTAURANT 9844 PACIFIC HIGHWAY, BULAHDELAH - PLANNING & ENVIRONMENTAL SERVICES

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PLANNING & ENVIRONMENTAL SERVICES

           ATTACHMENT A

  PES - MCDONALDS RESTAURANT
9844 PACIFIC HIGHWAY, BULAHDELAH

         STRATEGIC MEETING

            12 APRIL 2011
5            PES - McDonalds           Restaurant       9844    Pacific   Highway,
             Bulahdelah
        Index:    DA 485/2010 & PK 36663
        Author:   Senior Development Assessment Planner - Robyn Shelley
        Ordinary Meeting:   22 February 2011

DETAILS:

Date Received:       23 April 2010
Applicant:           McDonalds Australia Ltd
Owner:               Brewery Australia Development Pty Ltd
Land:                Lot 100 DP 1139447, 9844 Pacific Highway, Bulahdelah

                     Area:           60ha m2
                     Property Key:   36663
                     Zoning:         1(a) Rural, GLLEP 1996,GLLEP 1996

SUMMARY OF REPORT:

    •    Development Application No. 485/2010 lodged on 23 April 2010 seeking
         consent to construct a McDonalds Restaurant.
    •    Application was considered to be Integrated Development requiring the
         approval of the Roads and Traffic Authority under the Roads Act 1993.
    •    The land is Bush Fire prone land and the application was referred to the NSW
         Rural Fire Service under Section 79BA of the Environmental Planning and
         Assessment Act 1979.
    •    The application was both advertised in the Myall Coast Nota and notified to
         adjoining land owners for a period of 28 days.
    •    One hundred and twenty five submissions, one including six (6) signatures in
         objection to the proposal and 17 letters in support of the proposal were
         received.

SUMMARY OF RECOMMENDATION:

That Development Application No. 485/2010 seeking consent to construct a
McDonalds Restaurant on Lot 100 DP 1139447, 9844 Pacific Highway, Bulahdelah
be approved subject to the conditions contained in this report.

FINANCIAL/RESOURCE IMPLICATIONS:

Cost of defending any appeal against Council's decision.

POLICY IMPLICATIONS:

Compliance with Council Policies.
LEGAL IMPLICATIONS:

The applicant has the right to appeal against Council's decision.

LIST OF ANNEXURES:

A:     Plans of the proposal

LIST OF ATTACHMENTS:

A:    Plan showing approved developments and their location, including proposed
McDonalds.
B:  RTA Photo Illustration of the Central and Northern Sections (looking South) of
    the Northern Overpass.
C:    RTA Plan showing overpass in relation to the subject site.
D:  Social Impact Assessment lodged with Development Application and Response
    to Social and Economic Impact Issues Raised Regarding the Proposal and
    Social and Economic Considerations Relating to McDonalds Addressing the
    By-pass.
SUBJECT SITE AND LOCALITY:
BACKGROUND:

•     On 24 September 2007, conditional consent was granted for a 3 lot subdivision
      of Lot 1 DP 120651 & Lot 5 DP 863307 (DA779/2007) in order to create
      separate allotments for the Bulahdelah Golf Club, a brewery complex and a
      tourist facility.

•     On 11 October 2007, on land to the east of the proposed McDonalds site,
      Council's DCU granted conditional approval to DA427/2007 for the construction
      of a brewery, primarily for the export market and also for sale onsite. The
      proposal included a tasting room, pizza restaurant, bar and parking area.

•     On 28 August 2008, on land to the south east of the proposed McDonalds site,
      Council's DCU granted deferred commencement approval to DA799/2007 for
      the construction of a building for a major tourist facility comprising conference
      facilities, 2 restaurants, 206 hotel suites, 105 serviced apartments, 23 ancillary
      shops, a chapel, tennis courts, pools and parking.

•     On 23 April 2010, DA485/2010 (subject of this report) was lodged for a
      McDonalds Restaurant.

•     A copy of the site plan showing the Brewery, Tourist Facility and McDonalds is
      contained in Attachment 'A'. Assessment of the development application has
      been delayed pending the resolution of issues in relation to the overlapping of
      the parking areas, and the requirements of Transgrid, regarding works being
      undertaken under the high voltage power lines, for the brewery and the
      proposed McDonalds Restaurant

PROPOSAL:

The application proposes the construction of a single storey McDonald's restaurant
comprising:
   • Gross floor area 373.6m2.
   • Operating hours: 24 hours per day, seven (7) days per week.
   • A 52 space car park; two (2) coach bays and one (1) loading bay at the rear.
   • Two (2) waiting bays for drive through service.
   • Clearing of existing scattered vegetation.
   • The restaurant will be located to the north of the site with a car parking area
       to the south of the restaurant.
   • Drive through facility situated to the west of the restaurant. The drive through
       facility will operate in a clockwise direction and vehicles will exit the site at a
       driveway at the south eastern corner of the development.
   • The Drive through facility is proposed to be single lane and has been
       designed to cater for a thirteen car queue.
   • Access to the site involves the construction of a Type AUR intersection on the
       golf course access road to be constructed as part of the northern Bulahdelah
       interchange on the Pacific Highway and a service road to the site.
   • Vehicular flow throughout the car park will be two way.
   • Delivery vehicles will enter and exit the site in a forward direction from the
       access road. Delivery vehicles will access the loading bay which will be
       located on the western side of the McDonald's Restaurant.
   • Number of deliveries will be four to seven per week (including garbage
       collection).
•   Pedestrian entry points to the restaurant will be via the terrace on the
       southern and eastern building elevations.
   •   A bike rack will be located to the south east of the restaurant.
   •   Landscaping will be provided throughout the car parking area and along all
       site boundaries.
   •   The proposal will not be constructed until after the opening of the Bulahdelah
       upgrade of the Pacific Highway which is expected to be mid to late 2012.
   •   The site plans accompanying the application indicate a future subdivision of
       the subject site to create a 4994m² lot for the restaurant. However, the
       Statement of Environmental Effects (SEE) states that approval of a
       subdivision is not sought at this time.

Advertising:
   • One x 15.2m high illuminated pylon sign to be located in the north western
       corner of the site.
   • One wall sign on front eastern elevation
   • One wall sign on northern elevation
   • No signage on western elevation
   • Four wall signs on southern elevation.
   • Internal directional and speed signage will be provided throughout the car
       park, and a height clearance structure and menu will be provided, for the
       drive through facility.

All major services including reticulated water, sewer, electricity and
telecommunications are available to the site.

The application was considered to be Integrated Development requiring the approval
of the Roads and Traffic Authority under the Roads Act 1993 in accordance with
Schedule 3 of State Environmental Planning Policy (Infrastructure) 2007.

SITE DESCRIPTION:

The site is located to the north of the Bulahdelah Village, on the eastern side of the
Pacific Highway Bulahdelah. A dwelling house is located on the site. Consent has
been granted for a brewery in the location of the dwelling house. Some scattered
vegetation is located across the site. The site slopes upwards to the east.

The Bulahdelah Golf Club is located to the north of the site and a large area of
National Park is located to the west, on the opposite side of the Pacific Highway. The
Bulahdelah State Forest is located to the east of the site.

The Roads and Traffic Authority have reclaimed an area of land at the front of the
site, adjoining the Highway, for the purpose of the deviation of the Pacific Highway.

REPORT:

The following matters listed under Section 79C of the Environmental Planning and
Assessment Act, 1979, are relevant in considering this application:

The provisions of any environmental planning instrument; any draft
environmental planning instrument that is or was on public exhibition and
which have been notified to the consent authority; any DCP; any matters
prescribed by the regulations that apply to the Development Application on the
subject land

Great Lakes Local Environmental Plan 1996 (GLLEP 1996)
The land is zoned 1(a) Rural under the provisions of Great Lakes Local
Environmental Plan 1996.

       "The objective of the zone is to restrict development to those uses
       which are unlikely to -
              (a) prejudice in a significant manner the agricultural
                    production potential of land within the zone; and
              (b) generate significant additional traffic, or create or
                    increase a condition of ribbon development on any road,
                    relative to the capacity and safety of the road; and
              (c) have an adverse impact on the area's water resources;
                    and
              (d) create unreasonable or uneconomic demands for the
                    provision or extension of public amenities or services.

The proposal is defined as a Restaurant. A restaurant is permissible in the 1(a)
Rural zone.

The proposed development is considered consistent with the zone objectives and is
permissible with Council consent.

Clause 36 of GLLEP 1996 relates to 'Service Stations Along Pacific Highway or By-
Passes' of and states as follows:

     Objective of Provision
     "To prohibit service station development on land that is within one
     kilometre of the Pacific Highway or any by-pass along the route of that
     Highway and, in either case, that is within Zone No. 1(a).

     Prohibition of service station development
     Development for the purpose of a service station is prohibited on land
     that is within one kilometre of the Pacific Highway or any by-pass along
     the route of that Highway and, in either case, that is within Zone 1(a)."

The proposal does not include a service station therefore; Clause 36 is not relevant
to the proposal.

The intent of the Clause is to reinforce existing towns along the Pacific Highway, as
Highway service towns, by preventing the establishment of further service stations
and highway service centres. There are sufficient facilities to serve the needs of the
travelling public along the Pacific Highway.

State Environmental Planning Policy No 64
The Statement of Environmental Effects (SEE) notes that:

       "SEPP 64 Advertising and Signage applies to the proposed
       development. In particular Clause 15(2)(a) applies to the proposal.
       Clause 15(2) states the following:

       15 Advertisements on rural or non-urban land
(2) Except in a case to which subclause (3) applies, the consent
       authority must not grant consent to display an advertisement on
       land to which this clause applies:

       (a) unless a development control plan is in force that has been
       prepared on the basis of an advertising design analysis for the
       relevant area or precinct in consultation with:
               (i)     the advertising industry and any body that is
               representative of local businesses, such as a chamber of
               commerce, and
               (ii)    if the land to which the development control plan
               relates is within 250 metres of a classified road, the Roads
               and Traffic Authority, and the display of the advertisement is
               consistent with the development control plan".

The applicant considers that SEPP 64 is used by approval bodies without
Development Control Plans (DCPs) or policies to assess signage and therefore in
accordance with Clause 15(2)(a)(ii) SEPP 64 does not apply to the development
application.

Notwithstanding the statement in the SEE, an assessment of the signage, by Council
staff, has been carried out in accordance with Schedule 1 of SEPP 64. The signage
is considered to generally comply with the criteria.

The signage has also been considered under Council's Development Control Plan
No. 6 - Outdoor Advertising.

The application was referred to the Roads & Traffic Authority (RTA) who have
granted conditional consent to the advertising signage.

State Environmental Planning Policy (Infrastructure 2007)
The application was referred to the RTA in accordance with Schedule 3 Traffic
generating development.

The RTA responded noting that the application does not require the concurrence of
the RTA. The RTA advised that they have no objection to the proposed development
subject to the inclusion of conditions.

Great Lakes Highway Service Centre Strategy Report
The Great Lakes Highway Service Centre Strategy arose from the Bulahdelah
Community Focus Group consultation process, carried out as part of the Bulahdelah
Upgrade project.

The strategy defines a Highway Service Centre (HSC) as:

       "A 24 hour facility at a single location that has direct access to a
       highway and provides a range of essential services required by the
       travelling public and commercial highway users to encourage drivers
       to stop and take an effective rest break at appropriate intervals along
       a highway in the interest of driver safety. A key characteristic of a
       HSC facility is that it is integrated and approved as part of a single
       development application. Essential services to be provided at a
       'highway service centre' may include:
           • Designated parking areas for light and heavy vehicles
•   Segregated undercover fuel sale plazas (petrol, diesel, LPG)
              for light and heavy vehicles
          •   Emergency vehicle repairs
          •   Food and refreshment facilities, including a sit-down area
          •   Toilets
          •   Public telephone(s)
          •   Tourist information
          •   Outdoor eating area
          •   Children play facilities"

The strategy defined a Highway Service Town (HST) as:

      "A township that is located within 2km (off-highway travel distance)
      from a bypass and provides a range of services to the travelling
      public and local community which promote driver safety, local
      tourism and community interest. The range of services available at a
      HST must include as a minimum:
          • Service stations including at least one 24-hour facility
          • Sit-down and take-away food outlets
          • Motor vehicle repair and maintenance workshops
          • Overnight accommodation
          • Post-office and banking outlets
          • Medical facilities
          • Visitor information centre
          • Roadside emergency services
          • Public parks and children's playground areas.

      Based on the above definition, two HSTs have been identified within
      the Great Lakes LGA:
          • Bulahdelah; and
          • Nabiac."
For the purpose of the definitions of HSCs and HSTs in the Strategy, it is
acknowledged that the Village of Bulahdelah is a Highway Service Town, however in
accordance with the definition of HSCs, it is not considered that the proposed
McDonalds Restaurant can be defined as a Highway Service Centre as the proposal
does not include a range of essential services as described in the definition. The
proposed McDonalds Restaurant does not include a service station and fuel will be
available in the Bulahdelah Village.

Mid North Coast Regional Strategy
The Mid North Coast Regional Strategy is a land-use planning document that is
focussed towards guiding the future planning decisions of local government and to
help inform the regional decisions on service provision and infrastructure by State
agencies for the period to 2031.

The strategy identifies an area of land to the east of the proposed McDonalds
restaurant as a 'proposed future urban release area'.

The strategy identified 12 aims for the Mid North Coast Region. The majority of the
aims of the Strategy relate to the provisions of housing and rural residential
development and are not applicable to this proposal. The aim that is considered
relevant to this proposal is the first aim being protection of environments including
threatened species, vegetation and communities.

The proposal subject to the deferred commencement conditions, imposed by
Council's Natural Systems Section, in relation to threatened flora species is
considered to be acceptable and not contrary to the aims of the strategy.

Promoting Economic Growth and Competition through the Planning System
The Department of Planning and the Better Regulation Office are currently
undertaking a review to consider if aspects of NSW planning policies and legislation
need to be adjusted to ensure the right balance in achieving sustainable social and
environmental outcomes and in promoting a competitive business environment. The
review will result in a State Environmental Planning Policy on competition. The
Review Report - April 2010, in relation to the development application process states
that:

       "The SEPP will need to specify that loss of trade and financial
       implications for existing businesses should not, in itself, be a
       relevant planning consideration when assessing a proposal. It
       should also indicate that it is not normally appropriate for
       planning authorities to base any assessment on the
       commercial viability of a proposal as this is a matter that should
       be left to the market to determine."

Though the SEPP has not been adopted, it is clear from the review report that
Council's should not take into consideration loss of trade and financial implications for
existing business when assessing commercial/retail development applications.

However, the review report does also state:

       "Whilst loss of trade for existing businesses is not in itself a
       relevant planning consideration, the flow-on resultant impact on
       community facilities as a whole may be a relevant
consideration as established in Kentucky Fried Chicken Pty
       Limited v Gantidis (1979)."

In this case, a Judge of the Supreme Court agreed that while profitability and
competition are not valid grounds for refusal of a development application, "if the
shopping facilities presently enjoyed by a community or planned for it in the future
are put in jeopardy by some proposed development, whether that jeopardy be due to
physical or financial causes, and if the resultant community detriment will not be
made good by the proposed development itself", that appears to be a consideration
to be taken into account, as a matter of town planning.

The question to be answered, in relation to this development application, is whether
the construction of a McDonalds Restaurant that provides food to passing motorists
will place in jeopardy either physically or financially, the existing businesses in the
Bulahdelah town? As is known, the Village of Bulahdelah is to be bypassed by the
Pacific Highway. There is no doubt that the bypass will have an impact on the
commercial businesses in Bulahdelah – the additional impact on existing businesses
that a McDonalds Restaurant will have on those businesses is unknown. However, it
is not considered that the proposed McDonalds, on its own, would place in jeopardy
the shopping facilities of the community of Bulahdelah.

Conversely, it could be argued that the proposed McDonalds Restaurant, via
advertising of the Bulahdelah area in the restaurant, may have a positive impact by
enticing travellers into Bulahdelah Village.

Council Car Parking Policy
The applicant proposes the provision of 52 on-site car parking spaces, 2 coach
parking bays and 13 queue drive through facility.

Council's Car Parking Code requires the provision of:

   •   1 space every 8m2 of gross leasable floor area, plus
   •   1 space per 5 seats.

The proposal has a gross floor area of 373.6m2.

Seating capacity is:
   • Dining room 77
   • Terrace 41
   • Playland 6
   • Total seating capacity 124.

In accordance with Council's car parking code the proposal requires:

   •   46.7 for the gross leasable floor area, plus
   •   24.8 for the total seating capacity

The total car parking spaces required under Council's Car Parking Code is 72.

If calculating the gross leasable floor area using the general advice provided within
the Roads and Traffic Authority (RTA) 'Guide to Traffic Generating Development' the
gross leasable floor area represents approximately 75% of the gross floor area. This
results in the floor area of the proposal being 280m2 and in accordance with Council's
Car Parking Code, 35 car parking spaces are required in lieu of 46.7 as calculated
above.

Using the 75% equation, the total car parking spaces required under Council's Car
Parking Code is 60.

Council is currently re-assessing its car parking code. It is proposed to adopt the
RTA Guidelines for the purpose of determining requirements for on-site car parking.

In accordance with the RTA Guidelines, the following on-site car parking is required
for Drive-in take away food outlets that include on-site eating:

The greater of:
   • 1 space per 2 seats (internal) or
   • 1 space per 3 seats (internal and external)
   • plus queuing area for 5 to 12 cars.

Using the above calculations the development would require the following car parking
spaces:

   •   Internal seating capacity 77 - 39 car parking spaces
   •   Internal and external seating capacity 124 – 41 car parking spaces

In accordance with the RTA Guidelines for on-site car parking for drive-in take away
food outlets that include on-site eating, a total of 41 car parking spaces are required.

In support of the application, the Traffic Impact Assessment report, argues that the
seating in the playland area of six should be discounted from the total seating as
children are generally dropped off for parties.

Using the RTA guidelines and only counting the dining room 77 (internal) and terrace
41 (external) seating capacity results in a total of 39 on-site car parking spaces being
required for the development. The applicant proposes to provide 52 on-site car
parking spaces and two (2) coach parking bays, which is in excess of the RTA
guidelines.

Queuing has been provided for 13 cars.

In support of their application in relation to the provision of on-site car parking the
SEE notes that McDonalds operate many hundreds of stores around Australia and
are aware of the need to provide suitable on-site parking. Car parking has been
provided based on McDonalds own internal requirements and it is considered that
sufficient on-site parking has been provided for the proposal. The SEE further notes
that the provision of two (2) bus parking bays would easily be the equivalent of
providing four (4) car spaces.

McDonalds restaurants are typically utilised by customers for both eat-in and
takeaway and generally stopovers are short term. It is considered that the RTA
guidelines are acceptable in this instance.

It should be noted that the applicants 'Traffic Impact Assessment' discusses on site
car parking using numbers that differ from the plans as submitted. The Assessment
also incorrectly states that Council's car parking policy requires one (1) space per
8.5m2 of gross leasable floor area instead of 8m2. The above calculations for the
provision of car parking have been calculated using the plans as submitted, as these
plans, if the application is approved, will be stamped by Council as the approved
plans and therefore indicate the development that will be constructed on the property.

DCP No 6 – Outdoor Advertising
The application includes the following advertising signage:

Advertising:
   • One – 15.2m high illuminated pylon sign to be located in the north western
       corner of the site.
   • One wall sign on front eastern elevation
   • One wall sign on northern elevation
   • No signage on western elevation
   • Four wall signs on southern elevation.
   • Internal directional and speed signage will be provided throughout the car
       park and a height clearance structure and menu will be provided for the drive
       through facility.

The signage is permissible in the zone and complies with DCP No 6. The signage is
typical McDonalds Advertising. The 15.2m high illuminated pylon sign will be visible
from the Pacific Highway. The RTA have granted approval for the signage subject to
condition.
Section 94 Contributions

The Section 94 Contributions Plans that apply to the proposed development include
Great Lakes Wide and Rural Roads Bulahdelah.

The Great Lakes Wide Contribution Plan include Road Haulage Levy (based on
approximate amount of material transported over Council's roads) resulting in a
contribution of $340.00, and Headquarters Building (based on dollar value of capital
work) resulting in a contribution of $1,700.00.

The Rural Roads Bulahdelah Contribution Plan is based on the potential to increase
traffic generation.

Council's Traffic Engineer advises as follows:

     "Council’s S94 plan for Rural Roads Bulahdelah indicates that a development
     should be charged based on their traffic generating potential using the ratio of
     the expected daily trips per day divided by the daily rural trip generation.

     The RTA’s Guide to Traffic Generating Developments gives guidance on the
     trip generation rate for a McDonalds development. It indicates that a discount in
     the rate should be given for linked / passing trade. The Traffic Impact
     Assessment submitted with the DA indicates that 90% of trips will come off the
     Pacific Highway (passing trade) and as such on 10% of trips generated should
     be considered for the S94 calculation.

     The Guide gives no guidance on a daily trip rate for a McDonalds, but does
     provide an hourly rate of 180 vehicles per hour. It is industry practice to assume
     that the daily rate of a development is 10 times the hourly rate. In this instance
     this would result in 1,800 vehicles per day for the development. From above,
     only 10% of these trips should be counted for inclusion as S94 trips and as
     such the daily trip rate is estimated as 180 vehicles per day.

     The daily rate for a rural property that Council has adopted is 6.7 trips per day.

     As such, the ratio for the calculation of the S94 rate is:

     180/6.7 = 26.8 trips * $ base contribution rate.

     The contribution rate per trip is $4,931.42 resulting in a Rural Road
     Contribution of $132,162.06".

The likely impacts of development including environmental impacts on both
natural and built environments and social/economic impacts in the locality

Context and Setting
The proposed development is to be located on the Pacific Highway. McDonalds
Restaurants are highly visible, especially their trademark advertising structures.
Existing and proposed uses on the same side of the Highway include the Bulahdelah
Golf Club, a proposed brewery and tourist facility. Existing uses on the opposite side
of the Highway include a large undeveloped tract of National Parks land. The land
has been modified by the removal of a significant amount of vegetation for the
Highway deviation. Given the existing and proposed landuses in the vicinity of the
subject site, it is considered that the proposal is generally satisfactory having regard
to its relationship with neighbouring properties, the presentation/contribution to the
streetscape and the environmental qualities of the locality.

Visual Impact
The McDonalds Restaurant and its advertising structures will be visually prominent
from the Pacific Highway.

Access, Transport and Traffic
The application was referred to Council's Transport Assets Section who have
commented as follows:
       "Access:
       Access to the proposed development requires the construction of a type
       AUR intersection on the golf course access road to be constructed as
       part of the northern Bulahdelah interchange on the Pacific Highway,
       then via construction of an existing crown road reserve. Hence the
       development cannot be constructed until after practical completion and
       the opening of the Bulahdelah bypass upgrade of the Pacific Highway
       which is expected to be mid to late 2012. Also the consent of Land and
       Property Management Authority (LPMA) under Section 138 of the
       Roads Act 1993 shall be obtained for construction of the crown road
       reserve. (The LPMA by letter dated 7 May 2010 request that any road
       works allow for continuity of access for other users).

       Consideration should be given to providing appropriate parking facilities
       on site for buses, car/caravan and car/boat combinations.

       The application was considered by Council's Traffic Advisory Committee
       on 09/06/10 with the following recommendations being adopted:
       a)   On site parking is provided to relevant Australian and Council
            Standards.
       b)   Provision is made for trailer parking on site.
       c)   Intersection lighting is provided at key access points.
       d)   Measures are taken to limit the impact of large vehicles accessing
            the site by either the introduction of weight restrictions on the
            access road or the introduction of truck turning bay at the access
            road.

       Drainage:      All roof & hardstand water to be discharged to on-site
                      detention and comply with Council's Water Sensitive
                      Urban Design strategy. Details to be submitted.

       Climate Change:       The site is not affected by sea level rise.
       Flooding:             The development site is above the 1% flood height.
       Erosion Control:      An erosion and sedimentation control plan is to be
                             submitted for approval.
       Street Lights:        Street Lighting is to be erected in accordance with
                             AS 1158 to the satisfaction of Country Energy and
                             Great Lakes Council.
       Traffic:              Traffic control is to be undertaken in accordance
                             with the RTA Traffic Control at Work Sites on all
                             road construction.
Other:              There is an existing Transgrid Electricity easement
                           that traverses the site. All works undertaken within
                           the easement are to comply with Transgrid
                           standards and requirements.
       Other:              A damage bond has not been applied in this
                           instance given that vehicular access to the site is
                           via The Pacific Highway and then via the existing
                           golf course access. Accordingly no public roads
                           under Council's care and control will be used to
                           access the site."

Conditions of Consent recommended by Transport Assets have been included in the
consent conditions contained within this report.

Heritage
The site is located within an area identified as a "Proposed Heritage Conservation
Area'. Council's Heritage Study (The Study) adopted May 2007 discusses the
Heritage Significance of the Bulahdelah (Alum) Mountain. The Study states that "The
Bulahdelah Mountain has a high level of natural, Aboriginal, European archaeological
and historical significance." The Study identifies the Bulahdelah Mountain
significance under the following headings:

   •   Natural significance
           o Geological significance
                This section discusses the Mountain itself.
           o Vegetation
                This section notes that the Mountain is notable for the range of
                vegetation types. Though the area, the subject of this development
                application, is not located on the Mountain itself, Council's Senior
                Ecologist has carried out an assessment of the development site. His
                findings and recommendations are discussed below under the
                heading Flora and Fauna.
           o Scenic – landscape significance
   •   Aboriginal archaeological significance
   •   Aboriginal traditional-historical significance
       The Study, under the heading 'Aboriginal Traditional – Historical Significance'
       identifies the Bulahdelah Mountain as being a special place. The Study
       recognises that "Traditional burials had been made at the base of the
       Mountain" and that "the top of the mountain had traditional Aboriginal
       significance related to men's business." The area the subject of this
       application is not discussed within this section of the Study. However, it is
       considered appropriate to impose a condition requiring work to cease should
       any Aboriginal site or relic be disturbed or uncovered during the construction
       of the development and consultation undertaken with National Parks and
       Wildlife prior to any further work being carried out on the site. The Karuah
       Aboriginal Land Council was notified of the development and no submission
       was received.
   •   European archaeological significance
       This section discusses remnants of the mining operation and the various
       works that supported the operation and the associated human functions such
       as accommodation.
   •   European historical significance
This section notes "the historical significance of Bulahdelah Mountain is
        inextricably interwoven with its natural, geological and archaeological
        significance."
    •   European historical association significance
        This section discusses the evidence of the European historical association
        with the area evidenced by letters written by people who lived in the
        Bulahdelah area in the early 1800s. The section also discusses persons
        associated with the site being both a medical scientist/practitioner and
        botanist.

It is acknowledged that the area nominated as a proposed Heritage Conservation
Area is a significant area associated with Bulahdelah. However, the area the subject
of this development application is not located on Bulahdelah (Alum) Mountain or in
close proximity to the foot of the Bulahdelah Mountain.

It is considered that the proposal will not have an adverse impact upon the heritage
of Bulahdelah Mountain for the following reasons:

    •   Much of the heritage significance of the proposed conservation area is
        associated with the mountain and the foot of the mountain.
    •   The site has been used for the purpose of agriculture;
    •   A brewery has been granted consent to the south east of the proposed
        McDonalds restaurant;
    •   A tourist facility has been approved to the south east of the approved
        brewery; and
    •   The land to the east of the proposed restaurant and brewery is being
        investigated to allow rezoning for residential use.

Utilities
Utilities such as water, sewer, electricity and telephone are available to the site.
Water Quality Objectives

The application was referred to Council's Natural Systems Section who have
commented as follows:

     "The site being in the Upper Myall River Catchment/Myall Lakes Catchment
     has the water quality objective of no net increase in the export of pollutants
     (e.g. Total Nitrogen, Total Suspended Solids and Total Phosphorus). This is
     established through the Tea Gardens, Hawks Nest and Bulahdelah Stormwater
     Management Plan (2000) and the Great Lakes Water Quality Improvement
     Plan (2009). Development proponents are required to provided a stormwater
     strategy, containing a suitable treatment train which demonstrates using
     MUSIC modelling, that the water quality objective is achieved.

     Proposed treatment Strategy

     The proponent has not provided a stormwater quality strategy inclusive of
     MUSIC modelling. The site plan submitted as part of the development
     application indicates that on-site detention and a bioswale will be provided by
     the developer however no sizing details of the bio-swale or modelling is
     provided to verify compliance with the water quality objectives. Clearly the
     water quality management falls well short of requirements for assessment. As
     such Council is unable to be confident that the development proposal in its
     current format will not result in pollution of the sensitive Myall River catchment.
     There is however adequate land area within and around the immediate
     development, to site the water treatment systems to enable the development to
     comply with the established water quality objectives. It is therefore
     recommended that the development not be approved to commence until a
     stormwater quality strategy is provided inclusive of MUSIC modelling and
     details of sizing and maintenance area to the satisfaction of Council.

     The strategy submitted to Council must provide details of the content, design,
     location, operation, maintenance and performance monitoring and evaluation of
     the stormwater treatment train".

The recommendations of the Natural Systems Section have been included in the
conditions attached to this report.

Flora and Fauna
The application was referred to Council's Natural Systems Section who have (in
summary) commented as follows:

       "I conducted an inspection of the subject lands on the 1 July 2010. The site
       of the proposed development is characterised by a small remnant of modified
       open forest. The remnant would occupy approximately 0.4-hectares of land
       and is isolated from surrounding habitats by the existing golf course (to the
       north and east), recent clearing for the Pacific Highway upgrade (to the west)
       and powerlines (to the south). The remnant is isolated from nearby habitats
       by distances of at least 170-metres. The remnant contains existing mature
       (but not over-mature) trees with trunk diameters at breast height over bark
       ranging from 20 to 70cm. No hollow-bearing trees were identified during my
       site inspection. A total of 61 individual trees occur in the remnant. The
       following tree species were identified:
•   Sydney Peppermint – 22 individual trees;
•   Red Bloodwood – 13;
•   Smooth-barked Apple – 13;
•   Red Mahogany – 13; and
•   Tallowwood – 2.
The lower vegetation layers of the investigation area have been maintained
       through slashing. It is formed of native and exotic grasses (eg. Kangaroo
       Grass, Whiskey Grass), occasional native shrub and small tree specimens
       (Black Oak, Prickly Moses) and weeds of pasture and degraded land. The
       vegetation community present is of regional conservation significance (as it is
       considered to be “severely degraded” in the Lower North Coast)."

       "The site of the proposed restaurant is relatively small, isolated and has been
       simplified by understorey slashing and the effects of clearing of surrounding
       habitat areas. The area does not appear to contain over-mature or hollow-
       bearing trees. However, the study area does contain a stand of a regionally
       significant vegetation type and may provide potential habitat for threatened
       flora and fauna species. The canopy layer of the vegetation would constitute
       remnant native vegetation as defined by the Native Vegetation Act 2003.

       This assessment has calculated the ecological impacts of the development
       proposal as:

       •      The clearing of up to 0.4-ha of regionally significant, but modified dry
              open forest vegetation;
       •      The removal of an area of up to 0.4-ha of potential habitat for certain
              mobile threatened fauna and threatened flora species;
       •      Possible sediment and erosion and pollution risks and impacts from
              construction and operation;
       •      Possible impacts on the visual amenity of the local landscape;
       •      The generation of litter; and
       •      The encouragement of populations of pest animals, including Common
              Mynahs, House Sparrows, etc."

       Recommendation:
       "The Natural Systems and Estuaries Branch recommend that this
       DA be positively determined in respect to ecological issues.
       Effective and valid conditions of consent are important in respect of
       this matter to protect the environment and minimise the degree of
       impact and harm caused by the proposed works. This includes a
       number of deferred commencement conditions."

Cumulative Impacts
Many of the objections received to this proposal have raised concerns in relation to
the cumulative impact that this development may have, given that the town of
Bulahdelah is currently undergoing a highway bypass that will in all probability have
an impact on visitation to the town.

Council, in conjunction with the RTA and through consultation with the Community,
have been investigating ways to revitalise the Bulahdelah Township. Council's
Manager Parks and Recreation has commented as follows regarding the
revitalisation plan:

       "Council has received funding from the RTA to undertake a Post By
       Pass Revitalisation Plan for Bulahdelah. The urban design company
       Andrews Neil's were commissioned to undertake the works and produce
       the overall strategy for Bulahdelah. An inception meeting was held in
       February 2010 where the community, through a workshop format,
identified the important aspects of Bulahdelah and provided direction for
the plan. Unsurprisingly, the River, Alum Mountain and the rural feel of
Bulahdelah were identified by the community as the areas principle
strengths. These strengths were underpinned by a need to keep the
area a viable service centre to the highway.
Since that first meeting the Consultants have undertaken a review of
       background data and information, specifically the community
       consultations process undertaken by the RTA, to ensure all the needs
       have been identified and considered in the preparation of the plan. A
       second meeting was held on the 23rd June 2010 to disclose the works
       to date and ensure the direction identified was what the community
       wanted. That meeting was well attended by upwards of 85 local and
       interested people. The main item addressed at that meeting was what
       will happen to the soon to be "old" Pacific Highway. This issue will be
       one of the focal points of the plan along with ensuring the river front is
       vitalised and that all the natural and historic elements of the area are
       maintained as a draw card for Bulahdelah.

       Once the plan is adopted it will set a frame work for future works and
       funding applications that the community can feel has been their creation
       and a vision for their Town."

The plan was publicly exhibited at the Bulahdelah Visitors Centre at the end of
November 2010.

The application included information relating to the socio-impact of the development.
The information was referred to Council's Manager Economic Development who
requested further information on the socio-impact statement.

Council's Manager Economic Development has commented, in relation to the Social
Impact Assessment - an extract is provided below:

       "The submission indicates that between 80 and 130 jobs will result from
       the development (which includes full time, part time and casuals). No
       'Full Time Equivalent' figure is provided however based on national
       employment profile of McDonald's, the majority of positions will be
       casual. The Social and Economic Impact Assessment (SEIA) indicates
       that the annual wages bill will be '…in excess of $1 million'.

       Overall Comments re: Economic Impact:

       The Bulahdelah Upgrading of the Pacific Highway - Environment Impact
       Statement Technical Paper 13 (prepared for the RTA) indicates that the
       'experience from bypass developments elsewhere suggests that there
       would be an initial reduction in the number of vehicles stopping,
       followed by a gradual return to previous levels. The time taken to return
       to pre-bypass conditions depends on a wide range of factors.'

       Given the high dependence of the business community on the highway
       traffic, the immediate impact of the bypass is likely to be significant.
       The corresponding impact on the closure of business and reduction in
       employment is likely to be significant given the number of businesses
       who indicate that the majority of their business is derived from the
       highway.

       The RTA's Technical Paper indicates that 'evidence elsewhere indicates
       that following an initial decrease on opening of the bypass, stopping
       volumes recover rapidly especially if associated programs of in-town
       improvements are implemented…'
There are no guarantees that these improvements in Bulahdelah will be
made, especially in the short term. Initiatives will be subject to available
funding, amongst many other factors.

According to the information provided by Insite Consultants on 11
August in regard to the McDonalds development, 'Bypass impacts could
be minimised provided opportunities for the town are identified, and
priorities acted upon. Opportunities have been discussed with
McDonald's and subsequent strategies in the SEIA such as signage,
employment and potential support of the visitor information services.'

To my knowledge strategies such as signage and potential support of
the visitors information services are not a requirement of the DA at this
stage, so while they may add to the positive impact of the development,
they are still not certain.

The report lists a number of factors which will influence the future
viability of the existing business district, most of which relate to the
possible impacts of the bypass, including:
    •     How well the town prepares for the bypass
    •     Improvement to the amenity and ambience of the town
          resulting from the reduction in traffic
    •     Extent to which existing business retains regular customers
    •     Length of the bypass (being relatively short and close to the
          town)
    •     No petrol being available at the McDonald's location
    •     Traffic flow along the highway is predicted to increase

Impact of McDonalds on existing business:
Insite state that 'Given the variety of business (with some 70 businesses
operating) in Bulahdelah the McDonald's will not draw away from all of
these businesses. People will continue to use the businesses for a
range of reasons which are not limited to food and a rest stop.
Therefore, the impact of the bypass is far greater that the potential loss
of trade from McDonald's.'

'Motorists will likely stop at McDonald's and reduce the trade of some of
the local businesses - in particular cafes and take-away; and the
proposal will not effect all business sectors in Bulahdelah. Providing an
opportunity for motorists to stop could promote businesses (mechanics,
service station, supermarket, banking, etc) that travellers may require.
The impact on other business is difficult to determine and the injection
of McDonald's employees' wages into the local economy should off-set
some of these impacts because people will spend money on food, drink,
etc.'

The 'Social and Economic Implications of the Proposed McDonalds
Taking into Account the Bulahdelah By-pass' (Attachment 3) sums up
by saying:

       'Research undertaken for the SEIA, a review of the
       technical paper and other data, have produced no
       conclusive confirmation of the potential negative
       economic impacts of the proposed restaurant.'
In terms of isolating the economic impact on the proposed development,
       this information and the description of the employment implications
       detailed earlier, are considered the most relevant."

(The Social Impact Assessment and the applicant's response to the further
information request from Council's Manager Economic Development are contained in
Attachment 'D' to this report).

The Suitability of Site for the Development
The site is considered to be suitable for the development. The site is not subject to
flooding, or other natural hazards with the exception of bushfire. The application was
referred to the NSW Rural Fire Service who have raised no concerns or issues in
relation to bush fire. The development is also considered to be compatible with the
surrounding land use.

The site will have suitable access from the future access ramp off the Pacific
Highway.

Electricity Easement
The property is encumbered by two electricity easements. Transmission lines run
east west on the site and are being re-routed, part of the supply is going underground
and part of it remains above. There are no proposed changes planned for the North
South 132 KVA supply.

On 7 June 2010 Transgrid requested a site plan showing the exact location of the
easement over the site.

The plan was submitted to Council by the applicant on 17 August 2010 and
forwarded to Transgrid.

The officer from Transgrid that is assessing the McDonalds application was not
involved in the application for the Brewery that was approved on the subject site. A
copy of the brewery layout plan was also requested to be forwarded to Transgrid.
The officer noted that there seemed to be some conflict between the car parking for
McDonalds and the carparking for Transgrid. This matter was discussed with the
applicant for McDonalds and the proponents of the Brewery. After several
discussions it was conceded that both of the carparks for each of the developments
overlapped.

A Section 96 modification application has been lodged for the brewery in order to
rectify the conflict. However, the Transgrid officer noted that there is a road
proposed under the Electricity easement which he believed had not been assessed
by Transgrid. Transgrid were informed that the road was on the plans for the
brewery that had previously been submitted for their comment, after which conditions
of consent for the brewery development were forwarded to Council. Transgrid still
believe that they did not give consent for the road under the transmission line. The
proponent for the brewery has lodged an amended plan with Council to be assessed
in the Section 96 modification application. It is proposed to stop the road short of
three power poles that appear to be of concern to Transgrid. The Section 96
modification was approved, under delegated authority, on 14 February 2011.

Any Submissions Made in Accordance with the Act or Regulations
The application was both advertised and notified to adjoining landowners in
accordance with Council’s Policy and 17 submissions in support and 125 (one with 6
signatures) submissions in objection (9 of the objectors being visitors to the area)
were received. The submissions referred to the following issues:-

1.       The deviation of the Pacific Highway will have detrimental economic impact
         upon local business. Loss of business, particularly the food outlets/cafes and
         IGA will have a drop in trade, this economic loss will have a flow on effect to all
         businesses in the Bulahdelah town and will create loss of employment in
         Bulahdelah. Construction of a McDonalds Restaurant will incur further
         economic impact upon local businesses. Bulahdelah has all requirements for
         travellers.

Comment:

The Social and Economic impacts were previously discussed in this report under
"Cumulative Impacts".

It is acknowledged that bypass will have an economic impact upon businesses within
Bulahdelah. McDonalds within their SEIA further acknowledge that the construction
of a McDonalds restaurant may create a further impact upon these businesses. The
Social Impact Assessment (SIA) discusses McDonalds willingness to promote the
Bulahdelah area by advertising in the store. The SIA discusses McDonalds being a
partner to the Bulahdelah Tourist Information Centre. It is proposed to include a
condition requiring tourism advertising within the store. Visitors requiring fuel will
need to go into the Bulahdelah Village.

2.       The interchange is not designed for foot or bicycle access only. This will put
         young people, who will want to go to McDonalds at risk getting from the town
         area across the highway.

Comment:
It is acknowledged that the site is poorly serviced by public transport and the
development is unlikely to generate sufficient demand for increased public transport.
McDonalds note that the location is primarily aimed at servicing the needs of
travellers on the Pacific Highway. Advice from the Roads and Traffic Authority
indicates that a footpath is to be provided on the northern interchange between
Bulahdelah and the Golf Club which can also service McDonalds.

3.       McDonalds only provide employment for young people. The shifts given do not
         include full time employment

Comment:
McDonalds have commented that the proposal will result in significant social and
economic benefits to the local community including a minimum of 80 positions for
Bulahdelah and district residents. As discussed in submissions in support of the
application, local jobs will be lost with the bypass. McDonalds will provide positions
for some of the people who will lose their jobs.

McDonalds have advised the following in relation to their staff levels:

     •    McDonalds employ people full-time, part-time and casually.
     •    A local example is the Forster store where there are 9 full-time managers, 5
          full-time trainee managers and 1 full-time maintenance coordinator. The
          remainder of the staff is made up of part-time and casual crew members.
•    McDonalds employs people from broad age-ranges including older adults.
          Many managers, trainee managers and support staff (maintenance) are older
          adults.
     •    The final staffing model for Bulahdelah is not known at this stage, it is
          expected that Bulahdelah will employ a minimum of 80 people. However
          based on similar sized stores it is more likely to be 130.

4.       Both Council and the RTA gave their promise that no Highway Service Centre
         would be approved and that Bulahdelah itself was a Highway Service Town.

Comment:
As discussed above, under Great Lakes Highway Service Centre Strategy Report,
the proposed restaurant is not defined as a Highway Service Centre and Bulahdelah
is still defined as a Highway Service Town. There is no service station proposed with
the McDonalds development application.

5.       A McDonalds does not suit the rural theme of the area and is not appropriate at
         this site. Alum Mountain has Heritage value and McDonalds will detract from
         its beauty and heritage value. Historically a logging town.

Comment:
The proposed McDonalds is to be located on the outskirts of the town. It is to be a
contemporary designed restaurant that will not impact on the distinct local character
of the Bulahdelah town. It is acknowledged that Alum Mountain has Heritage value;
however it is also acknowledged that the area has been severely impacted upon by
the deviation of the Pacific Highway and that a brewery and a tourist facility have also
been approved in the vicinity of the proposal. It is not considered, given these
landform modifications and approved developments, that the proposed development
of McDonalds is inappropriate for the site.

6.     The proposal is not in accordance with the Mid North Coast Regional
Strategy.

Comment:
The applicant has provided information in relation to the Mid Coast Regional Strategy
and this was discussed above. The majority of the aims of the Strategy relate to the
provision of housing and rural residential development and are not applicable to this
proposal. The proposal, subject to conditions, is not considered contrary to the aims
of the Strategy.

7.       McDonalds should not be located so far from the main shops in the town.
         McDonalds should locate in the Bulahdelah town.

Comment:
Council does not have any control as to where an applicant chooses to locate a
business. McDonalds are generally located on Highways to service travellers.

8.       Several comments were made in relation to McDonalds's not serving
         nutritionally balanced meals and advertising being directed to children.

Comment:
It is acknowledged that McDonalds advertise to children, however this is not a
relevant consideration from a planning perspective and is not a consideration under
Section 79C of the Environmental Planning and Assessment Act 1979.
9.    The need to attract and cater to tourists is acknowledged but in a way that
      respects the health and wishes of local people as well. Council should listen to
      the local people.

Comment:
Statistics for Bulahdelah indicate that there is a population of 1,771 in 2006. Council
received 125 letters in objection to the development application and 16 letters in
support of the application. It is acknowledged that 125 objections is a considerable
number, however it only reflects the wishes of 7% of the Bulahdelah community.

10.     If this development is approved it will set a precedent for more similar
establishment.

Comment:
Council has not had any indication of further development on this site. If a
development application was to be lodged for more similar establishments, they
would be assessed on their merits, taking into consideration the socio and economic
impacts that a similar development would have on the Bulahdelah town and its
business precinct.

11.    Litter along highways is generally associated with McDonalds.

Comment:
The applicant has discussed litter and notes that McDonalds recognise their
responsibility to reduce the amount of litter, and has a National Litter Strategy. The
key focus of the strategy includes litter patrol. McDonalds is a major sponsor of
Clean up Australia. A Waste Management Plan was submitted with, and approved
by, Council's Waste Management Section. It is acknowledged that people do not
always dispose of their waste in a responsible manner, whether it be McDonalds
waste or waste from other food sources. Waste from McDonalds is recognisable due
to its marketing brand.

12.    Council should fight this development as they did at the southern end of the
Council area.

Comment:
The Development Application referred to was for a service centre near Karuah. As
discussed above, this proposal is not consistent with the definition of a service
centre. Travellers will still go into Bulahdelah to refuel.

13.   The 117 ministerial directions try to manage inappropriate development along
      the Pacific Highway and reinforce the role of commercial development in town
      centres.

Comment:
The Minister for Planning, under section 117(2) of the Environmental Planning and
Assessment Act 1979 issues directions that relevant planning authorities such as
local councils must follow when preparing planning proposals for new Local
Environmental Plans (LEPs). The proposal is not for a new LEP therefore S117
directions are not relevant to the assessment of this development application.

The submissions in support of the development raised the following:

That Council, in consultation with the RTA and McDonalds should give an
undertaking to agree to the following issues:
•   All directional signage for McDonalds northbound customers should direct
    customers to the first southern exit from the freeway.

•   The second northern exit to Bulahdelah be restricted to heavy vehicles only,
    facilitating the direction of northbound traffic through the town. No McDonalds
    advertising to be erected at this exit directing northbound customers to their
    restaurant.

•   Most McDonalds southbound customers will rejoin the freeway at the northern
    intersection, hence Bulahdelah will lose the opportunity to have this traffic
    pass through town. McDonalds should make provision for local tourist
    information to be displayed both within the store and on signs in the car park
    detailing attractions and business in Bulahdelah.

•   Now is not the time to oppose new business. A major corporation such as
    McDonalds can only bring more employment opportunities. Any employment
    of our youth is good. If operating 24/7 they will need more than only juniors
    and the mothers within our community who want part time work – McDonalds
    may become the answer.

•   With the bypass we will lose at least one, if not two, of our current Service
    Station which are major employers of our local residents. McDonalds will
    provide some employment.

•   Believe that McDonalds draws a different customer than our existing café
    style restaurants located in town. Existing cafes generally draw an older
    customer and it is believed that they would still prefer to come into the town
    than stop and visit McDonalds.

•   Generally towns the size of Bulahdelah once bypassed do not keep the same
    amount of hospitality and tourism businesses operating.

•   McDonalds coming to our town will be a great asset to our economic
    wellbeing into the future, providing employment prospects for our young
    people and possibly opening doors for them into managerial scholarships that
    McDonalds are renowned for as well as teaching responsibility and offering
    training. Once Bulahdelah is bypassed, the businesses that will be affected is
    unknown.

•   McDonalds will promote the local area and help our local tourism industry and
    show our passing highway traffic what great local attractions are available to
    them.

•   When the Service Stations close due to the bypass around 60 people will lose
    their jobs. The service station business has been a major industry in the
    town. People employed at the service stations are a vital part of the
    community who spend money within the town, also teenagers earn pocket
    money and gain experience to go on to the workforce. If McDonalds is
    refused consent where are we going to find work? It is vital to Bulahdelah
    that there are new industries to offer job opportunities, or people will have to
    leave the area to seek employment elsewhere.
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