Industrial Zones Tom Vasilopoulos

Reformed Industrial Zones The existing controls specific to industrial use include Industrial 1 Zone, Industrial 2 Zone and Industrial 3 Zone. Unlike the proposed new Residential Zones and the proposed new Commercial Zones, there are no new industrial zones proposed. Instead, it is proposed to replace the existing Industrial 1, 2 & 3 Zones with the improved Industrial 1, 2 & 3 Zones which aim to support business investment and industry by:  Allowing for a better mix of industry and office.  Providing greater incentive for business.

Summary of Proposed Changes There are two main changes proposed to the Industrial Zones: 1) Remove the default floor space area restriction for an office in the Industrial 1 Zone, Industrial 2 Zone & Industrial 3 Zone.  Under the current Planning Scheme, industrial zones have a floor space limit for office use of 500 square metres. That is, under Section 2- Permit Required Use at clause for Industrial 1 Zone; clause for Industrial 2 Zone and clause for Industrial 3 Zone.  Reason for change: - It is considered that a restrictive cap of 500 square metres was originally based on a traditional industrial building, which is no longer relevant or viable in today’s market.

Summary of Proposed Changes It is proposed to remove the cap of 500 square metres for office use to allow the ability to develop modern and more innovative industrial buildings which complement the current trends and market. However, Councils will retain the ability to schedule in a floor space requirement where it can be justified.

Summary of Proposed Changes 2) Allow a small scale supermarket of up to 2000 square metres of leasable floor area in the Industrial 3 Zone without the need for a planning permit. Further, to allow supporting shops which adjoin or are on the same land as the supermarket in the Industrial 3 Zone without the need for a planning permit, providing the combined leasable floor area for all shops do not exceed 500 square metres.  The changes are proposed to be incorporated into Section 1- Permit not required use, under clause of the relevant Planning Scheme.  The reason for this change is to facilitate commercial opportunities and enhance competition in the sector.

Other Minor Changes Under Clause for Industrial 1 Zone; Clause for Industrial 2 Zone and Clause for Industrial 3 Zone, the deletion of the reference to ‘Business 5 Zone’. In particular, the reference made in the conditions under Table of Uses for the specific uses, (eg. where a buffer distance is required). Also, deletion of the reference made under the headings ‘exemption from notice and review’ and ‘decision guidelines’. The purpose of the existing Business 5 Zone is to encourage the development of offices or multi-dwelling units with common access from the street. Under the existing Industrial Zones, certain uses include conditions that require a buffer distance from land which is in a Business 5 Zone.

Other Minor Changes The reasons for the deletion of the reference to Business 5 Zone:  Under Reformed Zones, the Business 5 Zone will become a Commercial 1 Zone.  Will correspond with the proposal to remove the floor area cap for office use in Industrial zones.  Is not considered to be ‘sensitive land use’ to warrant a minimum buffer distance for specific uses in Industrial Zones.

Issues Whether the complete removal of the floor space limits will create an overdevelopment of office type uses in industrial areas? Whether as-of-right retail development in Industrial 3 Zone areas will compromise the balance of rural and regional townships, thus undermining the commercial viability of the core of these nearby centres and townships? Whether small neighbourhood centres that rely on a supermarket presence to sustain a high level of business activity will be diminished? Whether there will be a weakening of activity centre policy and the loss of available industrial land?