Plans for a Liquorland in Helensburgh have been halted for now after the Independent Liquour and Gaming Authority (ILGA) refused the application from Coles.
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The application has been controversial in the community, with opposition from locals who say the area already has enough bottle shops and that a Liquorland would undercut existing independent bottleshops that are an important source of donations for community groups and organisations.
Neighbourhood Forum convener Warwick Erwin said that he first received an email with the decision of ILGA at 5pm and for the rest of the evening his phone was ringing off the hook.
"It was one of those things that you go, 'Why are so many people bothering me?' This is great," he said.
ILGA chairperson Philip Crawford said the significant community involvement, with around 300 public submissions, led to an indepth assessment process.
"The Coles Liquorland application received such an overwhelming response that it was incumbent upon the Authority to initiate further consultation," he said.
"The Authority gave much consideration to this application and ultimately concluded that granting the licence would not be in the public interest, in that it would not satisfy the needs and expectations of the local community."
Coles can appeal the decision to the NSW Civil and Administrative Tribunal within 28 days of the ILGA's statement of reasons being published on their website.
A Coles spokesperson said the company noted the decision from the Independent Liquor and Gaming Authority and would examine the statement of reasons when it becomes available.
In its final response on May 20 to community submissions, lawyers acting on behalf of Coles said that there was local support for the application and that opposition to the Liquorland was generated by incumbent businesses.
Mr Erwin said that throughout the application process, Coles had shown its "true colours".
"They don't care about the community, they just want to take as much money out of us as they can and that's become very clear."
Already, Mr Erwin said he had been contacted by other community groups in Sydney and regional NSW that are mounting their own challenges against what they see as inappropriate development. Mr Erwin said the experience of Helensburgh showed that a community can come together and shape the development they would like to see in their suburb.
"I think it shows a lot of people outside this area, that communities can stand up and say 'It's not acceptable,'" he said.
Mr Erwin said spirits were high in Helensburgh and plans were afoot for a party this weekend.
"I love this community because the community will get together and stand up for something."
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