A bitter planning row could head to the High Court after a controversial northside development was given the green light.
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The redevelopment of Giralang shops - including a 1500 square metre Woolworths - is set to go ahead after a court challenge to block the project was thrown out on Friday.
But an alliance of north Canberra businesses has foreshadowed continuing the long-running battle in the higher court. The ACT Court of Appeal dismissed the group's bid to stop the redevelopment, finding it did not have standing to challenge the decision.
Planning Minister Simon Corbell said the decision would end years of frustration for Giralang residents.
''What I would say to those who've been objecting is let Giralang residents have their local shops back,'' he said. ''This is a great win for the Giralang community.
''It means they can have a supermarket now that they can walk to, close to their homes, and I know there are so many people in Giralang who are looking forward to that.''
Mr Corbell said he did not know when work would begin at the site but there was now no obstacle to prevent the development from getting under way.
''The Giralang community deserve to have amenities close to home and to enjoy smaller retail shops and cafes,'' he said.
The Giralang shops, which have been vacant since 2004, became the centre of a bitter stoush in 2011 after Mr Corbell used his call-in powers to approve a Woolworths supermarket, retail outlets, a cafe, restaurant and car parks.
The north Canberra community welcomed Mr Corbell's move but local supermarket operators launched legal action in the ACT Supreme Court over what they saw as an over-development of the site.
The group alleged the ACT government's decision was not consistent with the Territory Plan because it was too large, would create traffic problems and failed to take into account the economic impact on other commercially viable centres.
But Justice John Burns ruled last year that none of the plaintiffs had standing to challenge the decision as there was no evidence the increased competition would affect their profitability.
Justice Burns noted the retailers had the ability to respond commercially to emerging competition.
The group challenged the decision
but the Court of Appeal upheld the original finding. Kaleen IGA owner Chris Haridemos said the business owners would review the decision and ''more than likely will appeal''.
Mr Haridemos said the outcome was a loss for the territory's small business operators and warned the development could kill nearby suburban shopping precincts.
''If residents and businesses within the retail hierarchy do not fit the definition of aggrieved persons, then who does?'' Mr Haridemos said.
''Local centres are about convenience shopping for the locals living around these centres. They shouldn't be trying to obliterate each other.
''The ultimate result is that the residents of Kaleen, Evatt and Spence may lose their local centre facilities if this decision is not challenged.''
Planning Minister Simon Corbell tweeted the decision:
with Lisa Cox