Petrol Station Opens Despite Council Rejection
The Medco Waratah service station on Lorna Street has become the centre of a legal dispute after opening in June despite Newcastle council refusing its development application. The City of Newcastle confirms it cannot prevent the petrol station from trading while the matter remains before the NSW Land and Environment Court.
Community Divided Over 24/7 Operation
Since commencing operations, the Medco service station has split the Waratah community. Nearby residents on Lorna Street strongly oppose the 24/7 facility, while others support the business due to its proximity to the Mater Hospital. The service station replaced a mechanic's workshop that had occupied the site for many years.
Historical Approval Creates Legal Grey Area
The controversy stems from a development approval originally granted in 1957 for a service station on the same site. Sydney-based company 777 Investments, which lodged its first development application in 2020, argues this historical approval permits petrol station operations. However, Newcastle council refused the company's most recent application on March 7, 2025, ruling it inappropriate for an R2 Low Density Residential Zone.
The council determined the proposal would create an unreasonable intensification of use and noted 777 Investments had not demonstrated the site's suitability or properly addressed impacts on nearby properties. This refusal followed an earlier council request on February 21 for the company to withdraw its application.
Despite the council's position, 777 Investments proceeded with site alterations including expanding the workshop into a convenience store, replacing fuel bowsers, installing new signage and a fuel price board, and removing two trees. The business received an occupation certificate on June 27 to replace fuel tanks and opened shortly after.
Legal Proceedings Underway
777 Investments has lodged a Class 1 appeal in the NSW Land and Environment Court against the council's refusal. The matter is scheduled for a Section 34 conciliation conference on November 18, 2025. A City of Newcastle spokesperson confirmed the council cannot take regulatory action against the premises while the appeal process continues.
The council has contacted community members who made submissions on the application to inform them of the upcoming legal proceedings. Residents have been advised to report concerns about unlawful activity, public safety, or road rule breaches directly to NSW Police.
Neither Medco nor its legal representative, Mills Oakley, responded to requests for comment about the ongoing legal dispute. The case highlights the complexities of development approvals in areas where historical permissions conflict with contemporary planning regulations.
