Struggle for a supermarket at the centre of Mick Gentleman's blocked McKellar shops development

On Tuesday Mr Gentleman announced that he would block the proposal from Bennettes Close Pty Limited, the first time the planning minister has used call-in powers to refuse a development.

Bennettes Close Pty Limited is directed by Tarik Jabal, the owner of Mawson Halal Market.

A letter written to Mr Gentleman from the director of Canberra Town Planning, on behalf of the developer, details a long history of attempts to develop the site.

Two prior development applications for the block, one approved in 2011 and another in 2016, stalled "due to lack of ability to secure tenants and achieve project viability", the letter from Pieter van der Walt states.

Canberra Town Planning also indicates that a supermarket that previously leased a space in the now-demolished site had gone into liquidation due to a lack of business and foot traffic.

The latest development application scaled down commercial space to one commercial unit at ground level, down from six commercial tenancies proposed in the 2016 application.

In his notice of decision, Mr Gentleman outlined that the proposal did not meet all the relevant objectives of the site's zoning as CZ4 Local Centres.

"The suburb and wider community of McKellar require a commercial hub for the resident population to respond to the needs of the residents of McKellar," the notice states.

"The subject site, a local centre, offers the best opportunity to provide such services; however, the proposal lacks integration with the surrounding local centre and appears to prioritise residential use over commercial use."

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Canberra Town Planning's letter argues that "another supermarket in this location was not desirable", with the developer instead pivoting to lease the commercial space to a professional services tenant.

A range of major supermarkets including those at the Kaleen group centre, the Belconnen Shopping Centre and the Evatt Shops, all within 5km of the proposed site, had driven down demand, the planners wrote.

The planning minister also found that the development lacked adequate parking to accommodate residents and visitors.

Asked about why he stepped in to block the proposal, an ACT government spokesperson said this was a rare instance in which assessment of the application had identified "a net negative outcome according to Territory Plan priorities", opening the final decision up to the minister.

"In this case, the proposed development met many of the requirements set out in the Territory Plan but it fell short in a number of areas, including provision of parking and zone objectives," the spokesperson said in a statement.

"While these issues may have been worked through, the minister formed the view that given the bigger-picture problem with the nature of the proposed development it was best not to keep the proponent or community in limbo about the outcome any longer than necessary.

"We know that Canberrans love their local shops and this site is zoned CZ4 Local Centre to protect and promote that use."

The use of call-in powers means an appeal cannot be lodged through the ACT Civil and Administrative Tribunal.

Another development application would need to be lodged to propose any further works.

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