The council is moving to capitalise on growing demand for industrial land through a rezoning proposal.
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Much of the total 293,765 square metres at South Goulburn is being pitched as having good Hume Highway access but also has its challenges.
Councillors at their recent meeting agreed to rezone a large portion (176,970 square metres) of its own land occupying the former nursery next to the old saleyards on Sloane Street from RU2 rural landscape to IN1 general industrial.
It will be coupled with a private developer's 116,795 sqm adjoining block to the west, which the party wants to subdivide.
A much smaller portion (432sqm) of council owned land in the corner of this area, and which is visible from the highway, is proposed to be rezoned from RU2 rural landscape to RE1 public recreation.
The council will firstly have to prepare a planning proposal for lodgement to the State Government for a gateway determination. The total process could take up to two years.
Planning and environment director Scott Martin said the 2016 Employment Lands Strategy had flagged the area as suitable for industrial purposes should more land be required.
"The rural zoning is no longer appropriate in the longer term given surrounding land uses," the document stated.
The strategy also found that the nearby saleyards and woolstores were underutilised. Saleyards site owner Bill Vowles has proposed an industrial subdivision for his land. The area is already zoned to enable this.
A report by the NSW Valuer General this year also noted rising demand for industrial land in Goulburn, including in the south, after a sluggish few years. In 2017/18 average prices rose 10 per cent in this area.
Mr Martin said increased demand was not necessarily a driving force in the proposal but the proximity to the highway and railway were favourable points. In addition, the land was well located for industrial purposes.
A report to councillors described the development potential as "high."
"The other advantage of the land's development for industrial uses, particularly in a high profile location such as this, is that it signals to the proponents that that the council is being proactive in enabling and facilitating business opportunities outside the metro area and thereby encourages businesses to look into the shire," the report stated.
But the connection of Tait Crescent, off Finlay Road, to Lockyer Street at the South Goulburn service centre is also seen as crucial. Negotiations have been finalised with the private developer wishing to rezone his land to industrial to facilitate this connection. The link passes through a small corner portion of the owner's land.
The report stated that highway access could be optimised by providing heavy vehicle connections to Tait and Lockyer Streets and routes through to Sloane, Dossie and Alice Streets, near the old saleyards. A master plan would be needed.
Councillors on Tuesday agreed to waive the developer's fees for the planning proposal, reasoning that it was an additional expense when the council was already preparing the document for its land in-house. The developer will however have to prepare a contamination assessment for his block. It is listed on the council's land contamination register.
The owner has already prepared an ecological and archaeological assessment.
"Advice from the proponent indicates there are a number of possible sites of significance to be considered that have arisen from an independent assessment," planners report stated.
The area's rezoning also faces other challenges. The land in lower Sloane Street is subject to flooding but planners say it won't unduly impede development if stormwater management and other measures are undertaken.
Any master plan for the overall area will also need to consider threatened species and the new Biodiversity legislation.
Mr Martin said if the demand existed for industrial land, the council would have to decide whether to undertake development itself or sell undeveloped to the private sector. Any land sales would be by private auction.
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