Kelmeny Fraser
April 29, 2013
The Courier-Mail
The way has been cleared for Costco to open its first Queensland retail outlet in North Lakes.
AMERICAN retail giant Costco has been given the green light by the Newman Government for its first Queensland store, dealing a huge blow to rival Westfield’s attempt to lock the competitor out.
The decision, to be announced today, could see consumers shopping at the highly anticipated megastore as early as next year.
It is expected to open the door to other Costco centres around the state under plans for a “massive phase of expansion” and shake up the discount petrol market by taking on retail fuel schemes run by Coles and Woolworths.
The ruling is one of the few times the LNP administration has used its call-in powers to short-circuit a likely protracted court battle.
Deputy Premier and State Development Minister Jeff Seeney has cited the creation of jobs as a key factor in his decision to use his ministerial call-in powers to approve the $35 million Costco development at North Lakes, north of Brisbane.
After two extensions to the call-in decision deadline, his conditional approval of the project cannot be appealed in court.
“More than 500 jobs were riding on this outcome – the jobs of the 160 construction workers and the 350 retail staff and others who will be involved in building and operating this development,” Mr Seeney said.
“We need to make sure that applications like this do not get bogged down in protracted legal proceedings.”
Costco managing director Patrick Noone said the process involved in building its first Queensland store had been “long and arduous”.
“We are looking at two or three more sites already as a follow-on,” Mr Noone said.
“There is lots of land in Queensland and we haven’t had too much difficulty finding sites, but the problem with the North Lakes site was the challenge from a third party on the council’s decision.
“That’s what has taken everyone’s time and effort.
“I think we are a big box and it has always been contentious but we are happy to work through local councils and the State Government to get a resolution.”
Costco, which operates more than 500 “membership warehouses” worldwide, gained approval from the Moreton Bay Regional Council last August for a 14,000sq m development at the North Lakes, which would include a Costco outlet and proposed petrol station.
Westfield retaliated by launching a legal challenge against the council and site developer Stockland in the Planning and Environment Court.
The scale of the proposed centre was beyond that allowed under local town plans and would “compete with similar development planned for the Town Centre Core,” according to Westfield’s court appeal.
Several other retailers lined up to join in the legal showdown, including owner of the nearby Supa IGA store, Drakes Supermarkets.
Mr Seeney revealed in November he intended to use his call-in powers to decide the Costco centre’s fate amid fears a battle in the courts could stall the development for years and cost Moreton Bay Regional Council ratepayers millions of dollars in legal fees.
He argued the introduction of Costco would boost market competition and lower prices.
The North Lakes store is estimated to generate $160 million of turnover in its first year of trade.
Stockland state general manager Kingsley Andrew said the decision was great news for residents and small retailers because Costco would deliver more affordable groceries and other consumer lines.
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