MAJOR PROJECT ASSESSMENT:

Aldi Distribution Centre,

Prestons

Artist’s Impression - Office Building

Artist’s Impression - Truck Loading Bays, Distribution Centre

Director-General’s Environmental Assessment Report Section 75I of the Environmental Planning and Assessment Act 1979 December 2007

© Crown copyright 2007 Published December 2007 NSW Department of Planning www.planning.nsw.gov.au Disclaimer: While every reasonable effort has been made to ensure that this document is correct at the time of publication, the State of New South Wales, its agents and employees, disclaim any and all liability to any person in respect of anything or the consequences of anything done or omitted to be done in reliance upon the whole or any part of this document.

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EXECUTIVE SUMMARY

Aldi Foods Pty Ltd (Aldi) operates a chain of discount grocery outlets internationally, with a number of facilities across New South Wales, Queensland and Victoria. In recent years, Aldi has been expanding its Australian operations through the construction of supermarket outlets and distribution centres. Aldi’s distribution centre at Minchinbury will shortly meet its optimum capacity. Aldi therefore proposes to construct and operate a distribution centre at Prestons. This distribution centre would support its stores in southern Sydney and NSW, while its Minchinbury distribution centre would support its stores in northern Sydney and NSW. The proposed distribution centre at Prestons is located on an 11.8 hectare site approximately 5km west of Liverpool within an industrial zone that forms part of the Yarrunga Industrial Release Area. The site currently contains some high quality vegetation and is bounded by the M7 Motorway and a mix of rural and residential properties. There is currently no road access to the site; however Aldi is currently seeking approval for an access road from Council as part of a separate development application. The project has an estimated capital investment value of $75 million and once completed would create 424 jobs during construction and 310 jobs during operation (comprising 110 full time jobs and 200 permanent part time jobs. During the exhibition period, the Department received seven submissions on the project, including five submissions from public authorities and two from neighbouring landowners. None of these submissions objected to the proposal. Submissions from public authorities raised issues in relation to flora and fauna offsets, vehicular access, stormwater management and signage. All authorities provided recommendations in relation to the above issues. Submissions from the general public requested further detail on stormwater management, and one submission provided support for the proposal. The Department has assessed the merits of the project in close consultation with Liverpool City Council, and is satisfied that the impacts of the project can be mitigated, managed and offset to ensure an acceptable level of environmental performance. It is also satisfied that the project offers significant economic and social benefits for the south-western Sydney community as it would facilitate development of the Yarrunga Industrial Release Area and create considerable employment in the local area. Consequently, the Department believes the project is in the public interest and should be approved subject to conditions.

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1. BACKGROUND

Aldi operates a chain of discount grocery outlets internationally, with a number of facilities across New South Wales, Queensland and Victoria. In recent years, Aldi has been expanding its Australian operations through the construction of supermarket outlets and distribution centres. Aldi’s distribution centre at Minchinbury will shortly meet its optimum capacity. Aldi therefore proposes to construct and operate a distribution centre at Prestons. This distribution centre would support its stores in southern Sydney and NSW, while its Minchinbury distribution centre would support its stores in northern Sydney and NSW. The proposed distribution centre at Prestons is located on an 11.8 hectare site approximately 5km west of Liverpool within an industrial zone that forms part of the Yarrunga Industrial Release Area (see Figures 1 and 2). The site currently contains some high quality vegetation and is bounded by the M7 Motorway and a mix of rural and residential properties. There is currently no road access to the site; however Aldi is currently seeking approval for an access road from Council as part of a separate development application.

Figure 1: Regional Context (site identified by red dot)

The site is currently vacant, and records indicate that it has been unused since 1947. The site is located in the eastern part of the Yarrunga Industrial Release Area, which is defined as an important sub-regional hub for industries in Liverpool City Council’s Development Control Plan 19 – Prestons Industrial Release Area. An industrial area is located directly to the north beyond the M7, crown land supporting high quality vegetation is located directly to the south and rural properties are located to the west. The nearest residential area is the San Marino Estate, which forms part of the Prestons residential area, less than a kilometre south of the site.

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Figure 2: Local Context

2. PROPOSED DEVELOPMENT

The major components of the proposal are summarised in Table 1, depicted in Figure 3 and described in full in the Environmental Assessment (EA) of the project (see Appendix E). Table 1: Major Components of the Project

Component Description

Stage 1 • Removal of vegetation and fly-tipping waste, bulk earthworks and importation of fill;

• Construction and operation of a distribution centre and associated infrastructure, including: o a single level warehouse facility (footprint of 36,213m

2 and maximum height

of 20m on the eastern side sloping to 8.4m on the western side); o a cold storage warehouse and associated ammonia plant room; o office building; o internal roads and parking, including truck loading areas; and o a truck wash and refuelling facility.

• Conservation and enhancement of a 1.5 hectare Environmental Offset Area; and • Landscaping.

Stage 2 Extension of warehouse onto the north-eastern corner of the site. However, this extension is not part of the development proposal and will require a further consent before it may be constructed.

Associated works Construction of temporary and permanent access roads to the site is the subject of separate development applications being assessed by Council.

Capacity Service 40 existing Aldi stores and 60 potential new stores. Capital Value $75 million. Jobs 424 during construction;

310 during operation (comprising 110 full time and 200 permanent part time). Length of construction 24-26 months. Hours of operation 24 hours a day, 7 days a week.

The site

M7

Industrial area

Crown land Yarrunga Industrial Release Area

Bernera Road

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3. STATUTORY CONTEXT

3.1 Major Project

The proposal is classified as a major project under Part 3A of the Environmental Planning and Assessment Act 1979 (EP&A Act) because it is development for the purpose of a storage or distribution centre with a capital investment of more than $30 million and therefore triggers the criteria in Schedule 1, Clause 12 of State Environmental Planning Policy (Major Projects) 2005. Consequently, the Minister is the approval authority for the project. 3.2 Permissibility

Under Section 75J(3) of the EP&A Act, the Minister cannot approve the carrying out of a project that would be wholly prohibited under an environmental planning instrument. The site is zoned 4(a) Industrial under Liverpool Local Environmental Plan 1997. The proposal is permissible with development consent as a ‘warehouse or distribution centre’ in this zone. Consequently, the Minister may approve the project. 3.3 Public Exhibition

The EA for the project was exhibited from 20 September 2007 until 26 October 2007 which satisfies the requirements for public consultation in Section 75H of the EP&A Act. 3.4 Environmental Planning Instruments

Under Section 75I of the EP&A Act, the Director-General’s report on this project is required to include a copy of or reference to the provisions of any State Environmental Planning Policy (SEPP) that substantially governs the carrying out of the project. The Department has considered the project against the relevant provisions of several SEPPs, refer to Appendix F:

• State Environmental Planning Policy No. 11 – Traffic Generating Developments; • State Environmental Planning Policy No. 19 – Bushland in Urban Areas; • State Environmental Planning Policy No. 33 – Hazardous and Offensive Development; • State Environmental Planning Policy No. 64 – Advertising and Signage; • Draft State Environmental Planning Policy No. 66 – Integration of Land Use and Transport.

This assessment concludes that the project is generally consistent with the aims, objectives and requirements of these instruments.

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Figure 3: Layout of the proposed facility

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3.4 Objects of the Environmental Planning and Assessment Act, 1979

The Minister is required to consider the objects of the EP&A Act when he makes decisions under the Act. These objects are detailed in Section 5 of the Act, and include:

‘The objects of this Act are: (a) to encourage:

(i) the proper management, development and conservation of natural and artificial resources, including agricultural land, natural areas, forests, minerals, water, cities, towns and villages for the purpose of promoting the social and economic welfare of the community and a better environment,

(ii) the promotion and co-ordination of the orderly and economic use and development of land,

(iii) the protection, provision and co-ordination of communication and utility services, (iv) the provision of land for public purposes, (v) the provision and co-ordination of community services and facilities, and (vi) the protection of the environment, including the protection and conservation of

native animals and plants, including threatened species, populations and ecological communities, and their habitats, and

(vii) ecologically sustainable development, and (viii) the provision and maintenance of affordable housing, and

(b) to promote the sharing of the responsibility for environmental planning between the different levels of government in the State, and

(c) to provide increased opportunity for public involvement and participation in environmental planning and assessment.’

The objects of most relevance to the Minister’s decision on whether or not to approve this project are those under Section 5(a)(i), (ii), (vi) and (vii). With respect to ecologically sustainable development (ESD), the EP&A Act adopts the definition in the Protection of the Environment Administration Act 1991. Section 6(2) of that Act states that ESD ‘requires the effective integration of economic and environmental considerations in decision-making processes’ and that ESD ‘can be achieved through’ the implementation of the principles and programs including the precautionary principle, the principle of inter-generational equity, the principle of conservation of biological diversity and ecological integrity, and the principle of improved valuation, pricing and incentive mechanisms. In applying the precautionary principle, public decisions should be guided by careful evaluation to avoid, wherever practicable, serious or irreversible damage to the environment and an assessment of the risk-weighted consequences of various options. The Department has fully considered the objects of the EP&A Act, including the encouragement of ESD, in its assessment of the project application. This assessment integrates all significant economic, social and environmental considerations and seeks to avoid any potential serious or irreversible damage to the environment, based on an assessment of risk-weighted consequences. Aldi has undertaken an environmental risk analysis of the project, and considered the project in the light of the principles of ESD. 3.5 Statement of Compliance

Under Section 75I of the EP&A Act, the Director-General’s report is required to include a statement relating to compliance with the environmental assessment requirements with respect to the project. The Department is satisfied that the environmental assessment requirements have been complied with.