BlackRock Motor Park has been approved by the regional planning panel with deferred commencement until multiple noise and operational conditions are met.
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The $77 million complex, to be located on the former Rhondda Colliery site in Wakefield, received majority (3-1) support from the panel, which deliberated in private for more than 90 minutes after hearing from about a dozen speakers at a meeting in Speers Point on Wednesday.
Panel chair Jason Perica said in the determination the developer would be required to submit a revised noise management plan after consultation with the NSW Environment Protection Authority.
"Noise is the most significant issue," he said.
"While the noise management plan includes a number of protection measures, the panel is of the view that the plan could be strengthened to be the most appropriate plan for this type of land use, in this site and in this rural setting to minimise impacts on surrounding properties."
The panel requested more noise-monitoring stations and for a complaint resolution process to be formalised in the plan.
Residents who spoke at the meeting had questioned why a nearby quarry had seven noise monitoring stations, but BlackRock only had two.
A revised operational plan will have to further explain the site's accommodation and function centre.
The panel also recommended changes to the conditions of consent, including inserting specific reference to the exclusion of competitive racing and a noise enforcement and compliance regime.
"These were issues raised by the community; 'look, you can have all these things in place, but if they're breached what does that mean?'." Mr Perica said.
"The panel would like to see ... a regime adopted so that there is potential for penalties if those noise limits are exceeded."
Those who spoke against the development questioned a range of issues, notably the use of a heritage incentive clause, noise and traffic impacts, and whether the application process had proceeded appropriately.
The DA was classified as recreational facility (outdoor), which opponents said should have been a recreational facility (major).
The Wakefield Residents Amenity Partnership says it will consider action in the Land and Environment Court.
Peter Coughlan, who spoke on behalf of his daughter's family who lives at Wakefield, said residents were "devastated" by the approval.
He said they believed the facility would have a significant adverse impact on the "semi-rural hamlet of 144 people" in Wakefield, and feared property prices would tumble due to noise impacts.
"We are somewhat pleased that, at least the issue of a noise management plan has to be prepared in conjunction with the EPA, because one of the key points of concern is that we have something that is clearly a motorsport facility but they are saying the distinct noise guide for local government, which covers motorsport facilities, is not being utilised in the current noise management plan," he said.
"If the EPA in their involvement, stick to what is clearly in the EPA rules, then they will have to follow the correct procedures, which is what we have been asking for all the way along."
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BlackRock proponent Tony Palmer was confident the extra requirements would be met but was hesitant to put a date on the start of construction.
He said detailed design work would need to be completed but he hoped the park could be operating within "two to three years".
"To get it done right, and get it done to the standard that we want, it's going to take some time," he said.
"It will require a bit of patience, in some respects, but we're ready to roll."
Mr Palmer said the project was targeting three main markets: car enthusiasts looking for somewhere to drive their own cars, corporate organisations that host drive days, and adventure experiences.
He said Sydney Motorsport Park at Eastern Creek, which he had previously operated a track-day business at, was "at capacity".
"There's a very large enthusiast market out there who don't have anywhere other than the one racetrack down in Sydney to bring their cars and drive them," he said.
"Competitive racing for us has never been part of our business plan.
"We're satisfying an under-serviced market at the moment with those three offerings."
BlackRock Motor Park will be able to operate 360 days per year, with operations on key public holidays restricted.
Its operating hours are set at 8am to 6pm for track-related activities and 6am to 10pm for non-track related activities.
"It's going to bring more visitors to the entire Lake," Mr Palmer said.
"You've got to have activities at destinations in order to drive people there, and I think on balance, all of the activities that are working together in the Lower Hunter region and Lake Macquarie City region, are starting to build a groundswell of really tapping into the adventure-tourism market."