CASTLEMAINE'S council has lost its fight against a proposed supermarket critics said was too big and would prove bad for other businesses.
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The Victorian Civil and Administrative Tribunal has dismissed the Mount Alexander Shire's opposition to the supermarket and specialty stores at Duke Street, Urquhart Street and Forest Street.
It has also rejected concerns from members of the public about any threats to existing businesses in the area.
"We accept that the introduction of a large supermarket will likely have trading impacts for a small number of existing retail stores, particularly supermarkets, in the region," the tribunal found.
Demand for more Castlemaine supermarket floorspace was high enough to justify a new store, presiding member Katherine Paterson and member Claire Bennett said in their ruling.
"A second full line supermarket will have significant economic benefits for Castlemaine, including increase in competition, a reduction in escaped expenditure to other towns such as Bendigo and ongoing employment opportunities," they said.
Changes at meandering town entry acceptable: VCAT
The tribunal has signed off on the new supermarket's design and layout despite criticisms from a number of groups about what it would look like from Duke Street and Forest Street.
Some said the new supermarket would compromise the meandering entry into town along Duke Street, with its older miners cottages, more recent homes, the occasional hotel and business, which culminated in a curved intersection properly revealing the town centre.
This "gateway" into Castlemaine was important for showing the town's character, those critics argued.
The tribunal has forced the deletion of one part of developers' plans.
They can no longer build a playground.
Controversial design a death knell for playground
The playground's design and location in a nearby reserve had proven controversial.
The tribunal had no concerns about a playground in the reserve and thought it would be good for Castlemaine's children and parents.
"However, we also recognise that this is a design element which requires significant input from Council as the land manager in terms of its ultimate design," it said.
"Given the opposition to the playground and uncertainty to the final design outcome we have required its deletion.
"We note that as the public land manager it is always open to Council to introduce a playground to the reserve at a future date."
Castlemaine Primary School and the minister for education initially opposed the supermarket over concerns about traffic management but dropped their opposition after plans were altered to include a new, signalised crossing.
Some objectors maintained objections to traffic and parking concerns, but the tribunal found they would be acceptable with the right planning conditions in place.
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