Ambitions for a multimillion-dollar supermarket and fuel station in Queenstown, which was expected to create 250 jobs, have been dashed after a veto from commissioners.
"Significant adverse effects" on the environment in the context of the rural general zone of the operative district plan were predicted by commissioners David Whitney and Lyal Cocks in their decision.
"The proposal fails to promote the sustainable management of natural and physical resources," they said.
They acknowledged provisions to aid future development on Frankton Flats were included in the operative district plan and the proposed plan change 19.
However, they said a stand-alone supermarket and fuel facility on land where "activity areas" were unresolved did not constitute the desired "integrated development".
The commissioners noted the Queenstown Lakes District Council's decision on the district plan change to create the Frankton Flats special zone was the subject of nine Environment Court appeals to be heard in January or February and so were "under debate".
Mr Whitney and Mr Cocks said the proposal to set up significant retail in activity area E2 in the Frankton Flats special zone without a finalised structure plan, or an approved outline development plan would establish "an undesirable precedent".
The commission referred to a "specialist precinct" designed by neighbouring development company Shotover Park Ltd northeast of the proposed eastern access road and the resource consent application being prepared for a Mega Mitre 10 store on it.
However, the commissioners said no weight could be placed on the proposal which did not have consent.
They heard legal reminders the commission must not regard trade competition or its effects when it deliberated, but they said Queenstown Central Ltd had an interest in the proposed plan change and the supermarket application and they were satisfied the company raised matters which were not related to competition.
The commission's 37-page decision was handed to the Otago Daily Times yesterday and dated October 20. It followed a two-day consent hearing in the Crowne Plaza Queenstown hotel in late September.
Foodstuffs South Island Ltd applied to the council for land use consent to construct and operate a supermarket and fuel facility on 2.2569ha of the Frankton Flats southeast of the Frankton Ladies Mile Highway.
