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[2011] VCAT 628
Victorian Civil and Administrative Tribunal
2011-04-12
Mr J
Original judgment source is linked above.
Section 77 of the Planning and Environment Act 1987; Section 3.3.4 Gambling Regulation Act 2003; Greater Bendigo Planning Scheme; Residential 1 Zone; Heritage Overlay; Neighbourhood Character Overlay; Hotel; 25 Electronic Gaming Machines; Social and Economic Impacts; "Net Detriment" Test; "Net Community Benefit"; Social Disadvantage; Community Views.
Drayton Manor Pty Ltd v Greater Bendigo CC [2011] VCAT 628
(c) The permit is subject to the conditions contained in Appendix 2.
Mr J Larkins and Ms S Porritt of counsel instructed by BSB lawyers. They called expert evidence from:
Neither was called to present their evidence. No party sought to cross-examine them.
Evidence was also called from Mr M Kuchel, General Manager, Foundry Hotel.
Mr R Appadurai, solicitor of Russell Kennedy on Days 1, 2 and 3. Mr A Sherman, solicitor of Russell Kennedy, on Days 4 and 5. Mr Appadurai called expert evidence from:
A statement of evidence by Ms A Jean, heritage consultant, was tendered. She was not called to present her evidence. No party sought to cross-examine her.
Demolition of an outbuilding and construction of a two storey extension to the existing Hotel. A new gaming lounge would provide for 25 electronic gaming machines ["EGMs"] operating from 11am to 1am the following morning. No change is sought to patron numbers. The parking layout is proposed to be revised.
Based on plans tendered during the proceedings the proposal has been revised to single storey with a total of 46 on-site car spaces.
Application under Section 3.3.4 of the Gambling Regulation Act 2003 ["GRAct"] by the City of Greater Bendigo seeking review of a decision by the Victorian Commission of Gambling Regulation to allow 30 gaming machines.
Application under section 77 of the Planning and Environment Act 1987 ["PEAct"] by Drayton Manor seeking review of a decision by the City of Greater Bendigo to refuse a planning permit.
Residential 1 Zone. Neighbourhood Character Overlay (NCO1). Heritage Overlay (HO451).
Permission to install 25 electronic gaming machines under Clause 52.28; demolition, buildings and works under Clauses 43.01 and 43.05; buildings and works under Clause 32.01; signage under Clause 52.05; waiver of parking under Clause 52.06; dispensation from loading facilities under Clause 52.07; and permission to supply and consume liquor under Clause 52.27.
The review site is 3,300 square metres and is located on the south-west corner of Old High Street and Shamrock Street. It contains a single storey heritage Hotel with car parking. The Hotel is licensed for 744 patrons. Residences adjoin the site to its north-west and south-west (two of which are owned by the Hotel operator). The opposite side of Shamrock Street includes a supermarket and, further north-east, Hungry Jacks.
24 February 2011 including the review site and other gaming facilities within the City of Greater Bendigo.
The planning permission is focused upon whether it is an appropriate location suitable for gaming and, secondly, the social and economic impacts of the location. The gaming considerations include whether the net economic and social impact of the machines would or would not be detrimental to the wellbeing of the community of the municipal district in which the premises are located. Hence, it is our view that a more detailed analysis of the economic and social impacts upon the community is a matter that is best dealt with as part of the consideration under the Gambling Regulation Act rather than as part of the planning application.
DOES THE PROPOSAL PRODUCE ACCEPTABLE PLANNING OUTCOMES?
What is the Planning Scheme seeking to achieve at this site?
What planning outcomes are sought for the location of gaming machines?
To ensure that gaming machines are situated in appropriate locations and venues.
To ensure the social and economic impacts of the location of gaming machines are considered.
Encourage the location of gaming machines, which are associated with other complementary recreation and entertainment uses and established in venues that:
Does the proposal achieve an acceptable outcome with respect to Clause 52.28 and relevant policies including Clauses 21.07 and 22.28?
Is the location likely to encourage convenience gaming?
Inspection of the site somewhat mitigates concern about proximity to the supermarket, although it is a problematic aspect of this application. The roadway separates the supermarket from the hotel. While the entrance to the bistro is well defined, entry to the gaming room would be either through the bistro or via the entry on the opposite side to the supermarket. An existing single gate in a brick wall opposite the supermarket is to be closed off. A patron would make a deliberate decision to visit the premises, rather than stumble on it.
Is an acceptable outcome achieved with respect to car parking?
SHOULD THE DECISION OF THE VCGR BE VARIED OR SET ASIDE?
...The Commission noted her view, which indicates the extent of the negative socio-economic aspects of the application, and the degree to which this application is finely balanced. However, the Commission does not consider that the condition proposed would be appropriate or capable of implementation in the new gaming environment. Provisional data published by the Department of Justice indicate that a total of 615 gaming machine entitlements (GMEs) were purchased for the City of Greater Bendigo, which is 68 in excess of the number of egms currently in the city but is still 141 below the municipal limit of 756. In the Commission's view, it would not be equitable for the holders of those additional GMEs to be denied venue approval solely in order to prevent an increase in the total number of egms in the municipality.
What are the relevant considerations in the "no net detriment" test?
What are the likely impacts on EGM density and EGM expenditure?
How does the proposal respond to the Council's gaming policy?
The Tribunal's conclusions against the objectives of Clause 22.28-2 are:
To discourage new gaming machines in disadvantaged areas.
The site is in a locality and area experiencing some social disadvantage. The level equates to other parts of the municipality. The impact of new EGMs will be mitigated by the existing level of access and exposure to EGMs within 2.5 - 5 km and the patronage that includes a sizeable proportion of custom would be drawn from beyond 5 km.
To ensure the location of gaming machines and design and operation of facilities containing gaming machines minimise opportunities for convenience gaming and the incidence of problem gambling.
Subject to some modifications to the internal layout and limits on courtyard access, the proposal complies.
To ensure that gaming machines are located where the community has a choice of non-gaming entertainment and recreation activities within the venue or in the local area.
To protect the amenity of existing uses surrounding gaming venues.
The conclusions of the Tribunal's assessment against the policy of Clause 22.28-2 with respect to "Appropriate areas" are:
Gaming machines should not be located in areas identified in Greater Bendigo Discouraged Gaming Areas Incorporated Document.
Gaming machines should be located in areas that meet at least one of the following criteria:
∗ The total density of gaming machines in the suburb and its adjoining suburbs is less than the regional Victorian average.
Complies with respect to the suburb of Golden Square but does not comply with respect to adjoining suburbs.
∗ The area is identified as a future residential growth area in the Municipal Strategic Statement.
The area is not a designated future residential growth area in the MSS at Clause 21 but some modest growth can reasonably be expected based on the development policies within the Scheme.
Gaming machines should be located proximate to higher order activity centres shown on the map attached to the schedule to clause 52.28-4.
Complies with respect to Golden Square activity centre shown in Clause 52.28-4.
Gaming machines should be located where there is a reasonable choice of alternative non-gaming entertainment and recreation facilities, including facilities proposed within 12 months. Alternative non-gaming entertainment and recreation facilities include hotels, clubs, cinemas, restaurants, bars and indoor recreation facilities operating at the same times as the proposed gaming venue will operate.
The conclusions of the Tribunal's assessment against the policy of Clause 22.28-2 with respect to "Appropriate sites" are:
Gaming machines should not be located on sites where large numbers of pedestrians are likely to pass in the course of their daily activities, increasing the likelihood of spontaneous decisions to play gaming machines.
Gaming machines should be located on sites that meet at least one of the following criteria:
∗ The site is towards the periphery of an activity centre, outside of the main shopping, transport, community and civic functions of the centre, or within walking distance of the edge of an activity centre,
∗ The location could reasonably be perceived as a destination in its own right separate from high concentrations of people undertaking daily activities, or
∗ At a sports or recreation club with a land holding of more than 2 hectares.
Does not comply but two of the other criteria are met consistent with the policy.
The conclusions of our assessment against the policy of Clause 22.28-2 with respect to "Appropriate venues" are:
Gaming machines should not be located in venues that have 24 hour a day operation or have a gaming floor area of more than 25 per cent of the total floor area of the venue.
Gaming machines should not be located where the gaming or any associated use will detrimentally affect the amenity of the surrounding area by way of design location or operating hours.
All species selected must be to the satisfaction of the Responsible Authority.
The Plan, including the matters specified herein, may be amended to the satisfaction of the Responsible Authority.
When approved, the Plan is to be implemented to the satisfaction of the Responsible Authority.
The Responsible Authority may extend the periods referred to if a request is made in writing before the permit expires, or within three months afterwards.
[1] The permit applicant agreed to plan changes to show bicycle parking in accordance with Clause 52.34.
[2] We have considered all submissions, evidence and other material presented by the parties although we do not recite all of the contents in these reasons. This includes submissions filed and served with our leave subsequent to the hearing.
[3] The other sub-sections are generally agreed between the parties.
[4] The "no net detriment" test referred to by the Tribunal in Sayers Property Holdings Pty Ltd v Wyndham CC [2010] VCAT 1364. Amendment VC71 replaced the SPPF but the point is the same for this part of the Scheme that is now found at Clause 10.04.
[5] Sayers Property Holdings Pty Ltd v Wyndham CC [2010] VCAT 1364 at paragraph 18.
[8] 2008. The plan is based on 2006 ABS data which is relevant today. The same data was used by Ms Peterson and Mr Quick.
[9] These are located within a Business 1 Zone and separated from the review site by Shamrock Street. A Business 4 Zone is located on the south-east side of the Calder Highway/High Street, east of the review site.
[10] Paragraph 52 of the decision dated 9 July 2010 explains why such a condition was not considered appropriate.
[11] Based on Ms Peterson's evidence at page 26. While only one survey, the profile is not unusual and is not challenged by the Council as being atypical for this type of facility in this locality.
[12] Mr Twite's evidence at 18. Ms Peterson's evidence at page 65 notes an inconsistency of that outcome with the municipal cap.
[13] Paragraph 55 of the decision dated 9 July 2010.
[14] That point is underscored by the fact that the Council has resolved not to oppose 12 additional EGMs at the Kangaroo Flat Sports Club that would result in a total of 60EGMs at that facility. Each case must be assessed on its own merits. The report to the Council states, in part, that the change in EGM density if the Kangaroo Flat proposal proceeds will be small and that the growth in the number of EGMs will be offset by strong population growth in the area. It also notes community opposition at 49.6% based on a survey it conducted.
[15] Ms Peterson's evidence at pages 58-61 identifies these and related matters.
[16] Paragraph 4.3 of the Council's written submission with respect to the planning permit application.
[17] Appendix C of Ms Peterson's statement of evidence.
[19] Gambling Regulation (Signage) Regulations 2005.
[20] Paragraph 42 of the decision dated 9 July 2010.
[21] As noted in the extract above, the gate facing Shamrock Street would be removed
[22] Paragraph 53 in the decision dated 9 July 2010.
[23] Paragraph 54 in the decision dated 9 July 2010.
[24] Paragraph 57 in the decision dated 9 July 2010.
[25] Paragraph 29 in the decision dated 9 July 2010.
[26] Section 16 at pages 74 - 75 of the statement of evidence.
[27] Page 61 of the statement of evidence dated November 2009.
[29] As some of the criticisms about its local policy might suggest.
Drayton Manor Pty Ltd
Greater Bendigo CC [2011] VCAT 628