Chisholm Village Pty Limited whipped up community backlash three years ago, for their attempts to demolish a local pub and replace it with a McDonald's.

The company first submitted a development application in 2019, and again in 2020, but both were knocked back by the ACT government, largely for vehicle and pedestrian movement and parking issues.

The developers ultimately appealed the decision and won in the ACT Civil and Tribunal Court in January 2021, but by February the ACT government decided to put an end to the saga, refusing to sell a public toilet block which would need to be demolished to make way for the fast food chain restaurant.

The fate of Chisholm Family Tavern seemed secure, but the owners of 30 years were told they would need to vacate the site in March 2021, and shut up shop by September.

Now the local shops could see a KFC built by the end of 2023, Chisholm Village's assistant development manager James Tsalikis said.

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"It's on the other side of the centre, we probably can't do anything on that side," Mr Tsalikis said.

If the application is approved, the drive-through restaurant will be built on Block 48 and 49 Section 539 Chisholm.

Car wash facilities, a new supermarket collection facility and six parking spaces would also be constructed in the development, which would cost $1,260,000.

Community consultation was not undertaken ahead of the proposal because the development did not meet the criteria requiring it.

"We're constantly speaking to new businesses, and just trying to get more people to come into the centre and bigger brands, just to build up the centre," Mr Tsalikis said.

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