Mega threat to downtown shops

The new application for six smaller retail spaces from Advance Properties Group comes at a time when Hastings' CBD is suffering a record-high level of retail vacancies. Photo / Warren Buckland

Central Hastings retailers fear an attempt by The Park Megacentre to add smaller stores to its large format shopping centre could be the "death knell" for the city centre.

The Hastings District Council chose the former Nelson Park site for large-format retail development, hoping its close proximity to the CBD would mean visitors to the centre would also shop downtown.

In a bid to stop The Park competing directly with CBD retailers, the council put zoning rules in place under its district plan that do not allow stores at the centre to be fewer than 1000sq m.

But The Park's new owners are testing those rules, seeking resource consent for six shops at the centre with a minimum floor area of 500sq m.

Central city retailers are worried that if the application is approved it will suck more commercial life out of Hastings' already-struggling CBD.

"The last thing Hastings needs is to have its CBD eroded to another part of town," Hastings City Business Association chairman Michael Whittaker said.

"It goes at the very heart of what The Park Mega was about. It was designed to reduce impact on the CBD and create a completely different retail space.

"The zoning there was for 1000sq m-plus - it was very, very clear it was not for small retail. It was for big retail and that's the way it needs to stay."

Councillor Wayne Bradshaw said he understood The Park's commercial reasons for wanting to make the application, but shared Mr Whittaker's concerns.

"If it goes ahead it is certainly going to make survival in the CBD [for smaller retailers] very difficult."

Mr Bradshaw said if the council knocked back the application the issue could end up in the hands of the Environment Court for a decision.

Sydney-based developer Charter Hall developed The Park four years ago, initially for The Warehouse, and Mitre 10 Mega moved to the development as owner of its site.

This year Noel Leeming moved to a new building at The Park with a footprint smaller than 1000sq m, but with a mezzanine floor that took it up to the minimum size.

Sydney-based Charter Hall, which has since sold the centre, withdrew an application for smaller retail spaces "because they realised it was too hard", Hastings Mayor Lawrence Yule said.

The new application for six smaller retail spaces from Advance Properties Group comes at a time when Hastings' CBD is suffering a record-high level of retail vacancies.

Mr Yule said Advance had every right to apply and its application, which was not a surprise, would be duly assessed.

"Developers have always wanted it, but the plan was quite clear at the outset as to what the rules were," he said.

"We're now in a place where people can apply to do something that varies from the plan rules, and that's what they're doing."

The council has yet to decide whether Advance Property's application would be notified, opening it up to public submissions.

Advance director Warren Ladbrook said the company would wait for the council's response to its application before deciding how it would proceed.

The Park has three smaller tenancies, among them Fishing Camping & Outdoors, which is due to vacate after its Australian owner pulled the plug on its New Zealand chain.

Mr Yule said the council was planing a public forum for June where experts would share their thoughts on what Hastings could do to revive its CBD in the face of changing shopping patterns, such as online buying, which were all affecting retailers globally.

"It's a phenomenon that's going on everywhere and we just need to understand what is occurring and what is the best way forward to try [to] mitigate it."