GERMAN supermarket giant Kaufland could open its first outlet in the Hunter at Belmont North, Lake Macquarie City Council documents reveal.
Councillors will on Monday consider a proposal that would permit a Kaufland supermarket on the Pacific Highway at Belmont North to open in late 2021.
Changes to zoning permissions are required for the supermarket development application to proceed.
The German giant, part of the world's fourth-largest grocery conglomerate, is eyeing the Bunnings site at Belmont North after the hardware chain moves on.
The Newcastle Herald has reported Bunnings will shift to the $90 million retail complex planned for the highway at Bennetts Green.
A report to councillors argues the former Bunnings site could accommodate the 4000-square-metre shopping hub and other retail outlets, and presents three options that would allow the planned development to proceed to full assessment.
They include encouraging the supermarket to set up elsewhere, rezoning the site for mixed-use development or adding food and drink as a permitted use.
The council report notes the land, which is within the bushfire-prone land buffer and one in 100 year flooding zones, requires further assessment before the project gets the green light.
It recommends adjusting the zoning to permit the supermarket rather than altering its classification.
"Further assessment of any potential flooding risk or implications will be assessed as part of the concurrent development application," the report notes.
The land also has an on-site containment cell holding asbestos but is deemed suitable for commercial uses.
An economic impact assessment of the proposal estimates that the supermarket would create about 150 direct ongoing full-time equivalent jobs.
"Due to its large draw, the proposed Belmont North Kaufland supermarket will attract sales from many supermarkets and other retailers throughout the region (including beyond the catchment at Charlestown and Warners Bay)," the document states.
"The proposed development will introduce a new international retail brand to the Hunter region and a new supermarket alternative for residents in the area."
Councillors will consider the report on Monday.
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