McDonald's bid to open a new outlet at Wongawilli is still alive after the Land and Environment Court sent the matter back for another hearing.
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McDonald's had taken Wollongong City Council to the court in a bid to have its development approved, after scaling back plans for a 24-hour operation down to 5am-midnight following a rejection by the local planning panel.
The fast food giant's plans, which include a service station, were met with furious opposition from many local residents, who said they bought property and moved to Wongawilli to live in a rural village, not a city-like commercial centre.
In a video decision on Wednesday afternoon, Land and Environment Court acting commissioner Philip Clay said he was not making any final orders, but some aspects of the proposal were not appropriate.
He gave the parties more time to process his 80-page reasons before making further submissions as to what changes might be acceptable to them.
"I have found that having regard to the zone objectives, the development application does not warrant refusal," he said.
He said the application did not necessarily warrant refusal, and he was making no finding on whether the proposed fast-food outlet was appropriate or not for the site.
But the communal open space was poorly located and accessed, and the entrance at the northern end was "poorly designed and compromised by the child care centre" adjacent.
Elsewhere, access and pedestrian movement to communal areas was inadequate. Commissioner Clay said there may be some merit to rejecting the childcare centre or the residential subdivision which was said to depend on the McDonald's outlet going ahead.
"Having regard to my findings, in the ordinary course the dismissal of the appeal and the refusal of the DA would follow," he said.
"This, however, is a DA which has distinct parts, which is less common, and may allow for a different outcome."
A new date for a mention has not yet been set.
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