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[2010] VCAT 252
Victorian Civil and Administrative Tribunal
2010-03-03
Mr J
Original judgment source is linked above.
(a) Caroline Dolling, Senior Portfolio Manager of Ross Hunt Pty Ltd, the Owners Corporation Licensed Managers:
Miss Dolling has managed the Owners Corporation since 2005. She attested that the Centre is in a rundown condition with maintenance being undertaken only where necessary. She consider that there will be marked economic benefit to the Centre and the members as a result of the ALDI proposal proceeding, the benefits being the payment of the $1million to the current members and business benefits to all unit holders from the anticipated increase in customers. She considers that it is probably a one off opportunity to prevent the Centre from continued decline. She said that proper maintenance is not undertaken and the Centre's infrastructure continues to fall into disrepair. Even at this low level of contributions required from the members by the Owners Corporation there are a number of unit holders who have difficulty in meeting their commitments to the Owners Corporation and she has had to implement instalment agreements to obtain the funds from them. There is over $8,000 owing in levies at the present time.
Mr Armstrong is an economist and produced a report of September 2009. His area of expertise is in shopping centres. He has done a lot of work for ALDI in the selection of its sites for its neighbourhood supermarkets. He has carried out many investigations of centres similar to this; which he identifies as an anchor supermarket and local shops serving a local hub. He considers that the lack of an anchor tenant such as a supermarket is one of the main reasons that the Centre is failing as a retail centre. He regards the vacancy rate of approximately 27% to be higher than usual in neighbourhood centres, he considers that the normal vacancy rate in this type of centre it would be in the order of 2-3%. In all other indicators the Centre shows that it is under performing and in fact failing. The rental return is very low. The amount of money levied each year on the unit holders for maintenance and promotion of the Centre is 2 to 5 times less than he would expect of a centre of this size. He considers that the ALDI proposal will revitalise the Centre bringing an anchor supermarket that he estimates would generate an additional 300,000 shopping visits to the Centre each year within 3 years. The ALDI presence and also its work in providing a facelift to the Centre would have positive effects on the existing unit owners' businesses and rents. He expected a fourfold increase on current rents and a commensurate increase in property values.
(c) Michael Durkin Traffic Engineer, GAT Consultants Pty Ltd
He is a civil engineer specialising in transport planning. He conducted extensive surveys of the carpark usage over 2007 when he carried out a week long survey of carparking demand in the second half of 2007. The 2008 surveys were in relation to the carparking demands on Sundays carried out from late March to late April, being four surveys in all. A similar survey was carried out in 2009 starting on the last Sunday in August and going through to the Sunday four weeks later in the second half of September. The absolute peak demand that he measured was on Sunday 6 April 2008 when 106 cars were at the centre at noon and there were 145 carparks vacant. His conclusion is that the ALDI store will not result in capacity car parking being reached for some time. I refer to the results of Mr Durkin's surveys in my analysis.
(a) Richard Kerridge, Chairman of Associated Christian Missionaries for the Church:
Mr. Kerridge gave evidence of social disadvantages to the Church of the proposal. He submitted that anything that threatens the Church's welfare is detrimental to the community. He had seen the carpark packed on days when the Church had a special event as a song day. He agreed with Pastor Beling's concerns about carparking and he considered that the ALDI proposal would be detrimental to the future of the Church with respect to carparking. He accepted in cross examination that he had no expertise in retail economics or carparking.
(b) Nam Hong Nguyen, owner of Allotments 15 and 16, Tuition Centre:
Mr Nguyen stated in his outline of evidence that he considered the serviced component to be approximately 62% of the Centre's leaseable area and they had contributed a major proportion of the management expenses over the last seven years. He does not consider that ALDI's presence will necessarily guarantee the survival of the centre businesses. The apparent economic benefits are hypothetical, unquantified and unproven. His business had been operating at the centre since 2003. It is a profitable company with takings of $32,000 per month with a profit margin of 25-30%. The Centre provides students in the area with tuition services in mathematics, sciences and English. The Tuition Centre is a major user of the carpark; however, most students are dropped off and picked up by their parents; he estimates that staff and parent parking amounts to approximately 20 carparks when the Tuition Centre is operating. The drop off and pick up of students takes place approximately 15 minutes before and after the tuition sessions. He is concerned about car related safety incidents in the dropping off and picking up of students as it will create a potential for his company to lose students given the reduced parking and more congested, and what he considers to be, unsafe traffic conditions. He considers insufficient consideration is being given to the important community and education services provided by his company and the Church. The tuition centre works with local schools in improving their development.
In cross examination he agreed with Mr O'Brien's opinions that the Centre was a dead centre and that ALDI would revitalise it. He also agreed that Mr O'Brien considered that ALDI would not have any significant impact on his business. He added that traffic congestion is a real issue in the drop off and pick up of children. He agreed that although the sign on his façade would be blocked from sight on Heatherton Road by the ALDI supermarket he could direct his new students to the centre by saying it was behind ALDI. He agreed that the improvements by ALDI should increase his business. At the conclusion of his evidence he said that the only real issue he had was with traffic congestion relating to the dropping off and picking up of his students in a centre that in all likelihood would have substantially more business.
(c) Donald Betts Jr, Business Owner and member of Church:
Mr Betts has been a member of the Church for six years and a regular attendee at its services and functions. He considers that the Church has a fast ability to grow particularly in the area of younger people. It has social programmes for feeding needy people and students. He considers that the present congregation is approximately 300 members. He considers that ALDI would be a great benefit to all parties if established at the Centre but is concerned about carparking. In cross examination he said that he did not accept the figures produced by Mr Durkin for carparking and that his assessments were speculative.
Pastor Beling said that the church had been an incorporated assembly since 1986 and that they had purchased Unit 21 in the Centre in 2001 and that their present congregation was 260 adults and children. They had a planning permit that limited the numbers at the church to 500 which Pastor Beling considers requires 150 carparks to hold that congregation. If the growth of the congregation was to be impeded the Church would suffer an economic set back and possible loss of members. Therefore, the Church considers that if the ALDI proposal was to go ahead additional carparking is required. In cross-examination Pastor Beling said that the congregation had grown in 2009 to the date of the hearing by 50 and in 2008 it had also grown by 50. Pastor Beling said that in his opinion that currently the peak parking on the Sunday service together with retail traffic could approach the carparking capacity. He said that the Church welcomed ALDI into the Centre, their only concern was for the carparking. That was the reason for their open offer.
(e) Michael Gerard O'Brien, Traffic Engineer, Director of TTM Consultants (Vic) Pty Ltd:
Mr O'Brien produced two reports, the first on 29 June 2009 and a supplementary report in September 2009. In his reports and his evidence in chief he said that he considered that the current centre was essentially a dead shopping centre; this was due to:-
(a) the proximity of the main Springvale shopping centre, approximately 1 kilometre to the north;
(b) that the upgraded Westall Road which took away passing traffic on Heatherton Road;and,
(c) that the Centre suffers from not having an anchor tenant.
He accepts the estimates of Mr Armstrong for the increased trade to the Centre that ALDI will bring and he accepts the existing carpark surveys as carried out by Mr Durkin and his projections for the increase in carparking as a result of ALDI. In relation to the anticipated increase in carparking if the ALDI proposal was implemented the Church, under its current planning permit limit of church attendances of 500 persons together with the planning permit seating capacity of the reception centre of 300 persons and the restaurant of approximately 100 seats then at the normal carparking provision for shopping centres of 0.3 carspaces per seat, this requires a peak carparking provision of 240 carparking spaces. If the ALDI peak demand of 52 spaces is added to that this is far in excess of the carparking now proposed with the ALDI proposal of 192 spaces. He assessed this another way in looking at all of the carparking was with the ALDI store was taken up what would be the availability of carparking for the Church, reception centre and restaurant and this would be in the order of a peak attendance of 330 persons; which is significantly less than the peak attendance. If the ALDI proposal was implemented he expects that it would revitalise the Centre and the smaller local shops will thrive off the increased retail trade. In his addendum to the reports he recommends that a 100 capacity multilevel carpark be constructed on the eastern carpark. When asked why he had used the maximum number for church attendance under the town planning permit he had said this was the maximum allowable. When asked when he considered this would be he said that he didn't have any information and it was not relevant. In relation to the ALDI shoppers he said they stayed at the Centre for approximately 20 minutes while attendees at the Church stayed for approximately two hours. He said if Church carparking started to squeeze out retail traffic this would result in ALDI and the other retailers getting regulations limiting carparking time. He agrees that the measured Church peak attendance of 155 persons for a Sunday service was correct. He agrees that he has made no attempt to assess the carparking using the church's current attendance figures.
Economic and Social Disadvantages to Non-consenting Members
It is the Church's own evidence is that it is family oriented and it has many family groups as parishioners, this means that a single person per car is the predominant method by which attendees get to Church. I consider that such a high level of car use should be discouraged and car pooling by attendees should be promoted.
Butten
Khung & Ors