WA Planning Commission rejects Bunnings development in Dalyellup

Planning authorities have rejected a fiercely contested multimillion-dollar Bunnings development 10km from its existing site in the West Australian regional city of Bunbury.

A public outcry erupted over the hardware giant's plans to vacate its site at a retail centre in Bunbury, south of Perth, and shift to the town centre of Dalyellup, 10 kilometres away in the neighbouring Shire of Capel.

Bunbury's business and political leaders united in a heated campaign against the new store, arguing it would undermine the viability of the regional centre, and take up land intended for housing.

After considering the matter for more than four hours, the WA Planning Commission on Wednesday said the Dalyellup block had been identified for residential development and it was not satisfied a big-box retail development represented the "highest and best use" of the land.

Bunnings property and store development manager Garry James said he was disappointed by the decision.

"We will take some time to review the outcome and consider our next steps," he said.

A tough decision

Bunnings' current Bunbury landlord, Citygate, told WA planning officials the move would have cost local retailers in lost sales.

Bunnings representatives contested the claim, citing its own projections of a five per cent reduction in turnover for the Bunbury commercial precinct, which it said would be short-term, and affect only larger retailers.

The WA Planning Commission said the proposal was a clear departure from the existing structure plan, in which the land was identified for residential development.

Members stressed that this did not mean the land could not be rezoned commercial, but they could not approve the development in its current form.

WA Planning Commission chairperson Emma Cole described it as a challenging application, which was "line ball."

"There have been many valid points raised along the way, and it's certainly been one of the more challenging applications," she said.

Housing concerns

Several deputations were read out to planning officials, raising concerns about the use of land that could otherwise be used for housing.

Among the critics was Anglicare regional manager Lisa Whittaker.

"It removes crucial residential housing land at a time when people are experiencing housing stress, housing instability and homelessness," she said.

Property developer Justin Trewren from Summit Homes said there was a critical land shortage in the South West.

But Bunnings and the Shire of Capel strongly rejected claims of harm to housing supply.

Bunnings planning consultant Daniel Lewis said knocking back the proposal would not result in more housing.

"[We have] a strong view it was not suitable for housing — the land owner never intended to use it for housing. It would have been a church," he said.