Woolworths Group has cleared a hurdle over its $120 million project on the former White Sands tavern site after the Supreme Court weighed in on its lapsed approval.
Woolworths Group has cleared a hurdle over its $120 million project on the former White Sands tavern site after the Supreme Court weighed in on its lapsed approval.
Supreme Court of Western Australia justice Matthew Howard recently ruled in favour of Woolworths, in its pursuit to overturn the City of Stirling’s rejection of its proposed time extension of the Scarborough project.
Fabcot, the development arm of Woolworths, sought to extend its approval deadline to develop the land on 242 West Coast Highway from mid-2025 to 2029.
The Metropolitan Redevelopment Authority approved the $120 million application in late 2020, when the Scarborough area was still in its jurisdiction.
As part of the approval, substantial commencement on the site must occur by July 2025.
The proposal comprises two towers of 29 and 12-storey heights, connected by a three-storey podium and two-level basement.
A Woolworths supermarket is expected to cover 9,1010 square metres of the lower levels, with the rest of the storeys to house 302 apartments.
City of Stirling regained control of the area and included the area into its local planning scheme in 2023, as part of a move called ‘normalisation’.
Fabcot applied to the MRA to change its starting deadline but was redirected to the City of Stirling, the recent court judgment shows.
The city rejected Fabcot’s application to extend the substantial commencement period, claiming it did not have the power to grant the application because the initial approval was made in a former MRA redevelopment area.
Fabcot sought a review of the city’s decision in the Supreme Court of WA, which recently found the city did have the power to determine the developer’s time extension bid.
“In my view, it is, at the least, an error of judgement on the part of the City, and/or its legal advisers, to not participate where Fabcot's application against the city raises questions of the city's power that depend on the proper interpretation of its own [local planning scheme] and where the legality of the city's decision made on 9 May 2025 is challenged in this court,” Justice Howard said.
In his judgment, Justice Howard said if the city’s argument was accepted, then neither the city nor the MRA could amend any approval made by the latter.
“That is notwithstanding that Local Planning Scheme 3 expressly recognises that land within the Scarborough Redevelopment Scheme is now within the purview of LPS3 and, further, that the city has said that it adopts and will apply … the policies of the MRA applying to that land,” he said.
“For these reasons, I am of the view that as at 9 May 2025, the city had power to consider Fabcot's extension application.
“Further, on the material before me, it appears to be entirely appropriate to make the declaration against the city as sought by Fabcot.”
Business News understands Woolworths Group is working to extend the development approval on the site, which expired in July.
