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Do I need a development approval to operate a Gym on the Gold Coast?

Health and fitness is important to many Gold Coast residents so it’s no surprise that many gyms are located throughout the City, with more and more established every day it seems! In most instances a development approval is required to operate a Gym in the City.

Below, we will go through some of the key factors that Council considers when assessing Gym’s and some things that every gym operator needs to be aware of:

Gyms are spread throughout the city, but the majority are found in commercial / industrial areas. Gyms are generally supported in commercial areas (Surfers Paradise CBD, Southport CBD, Broadbeach CBD etc) but still require a development application to be lodged with Council. With the rise of group training type gyms in the past decade (i.e F45 etc) gyms have become much more common in industrial areas. This is due to cheaper rents and larger facilities that cater to the type of training that group classes provide. However, gyms are much more difficult to gain a development approval for, within industrial areas. Although many have been approved in the city, it is often a long and expensive process for gym owners to go through. It is critical that gym owners understand the timing and also costs involved prior to signing any lease agreement. In Align’s experience Council officers consider two critical factors when reviewing gyms in industrial areas:

• Car parking is a significant hurdle to overcome when it comes to gaining approval for gyms in industrial areas. This is due to the difference in car parking demand between traditional industrial land uses (i.e manufacturing, warehouses, mechanics) and a gym use. Industrial land uses, generally have a car parking rate of 1 car park per 50m² of floor area, while gyms have to either provide 1 car park per 20m² of floor area if they are 24 hours and have no classes, while gyms with classes have to provide 1 car park per 10m2 of floor area. This means that a 200m² industrial unit may have to provide 4 car parks when it was constructed, now must provide 20 car parks once its converted to a gym with classes.

• Availability of Industrial land – When Council approves any gym uses in the City, they will often ask an applicant to demonstrate that gyms cannot be established anywhere in the traditional commercial zones (i.e Surfers Paradise CBD, Southport CBD, Broadbeach CBD etc) of the city and to show how the gym will not take away valuable industrial land i.e. causing a shortfall of industrial land in the City. This is a complicated discussion which usually requires a town planning consultant to discuss directly with Council. In Align’s experience, Council has traditionally agreed to arguments put forward by the applicant when tackling this issue.

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Another key requirement which surprises a lot of gym owners, is the infrastructures charges (formerly headworks). An infrastructure charge is essentially a tax issued by Council for any development in the City. When it comes to commercial / industrial land uses, these charges are calculated based on floor area. The traditional Warehouse / industrial units that gyms take over are charged at approximately $60 per m², with this fee most likely paid when the units were originally constructed. The fee for a gym is approximately $220 per m². Gym owners (if they are the applicant) are issued with an invoice for the difference ($160 per m²) as part of any development approval from Council. This can have a significant economic impact to gym owners.

In late 2022 Council did introduce a mechanism for reduced infrastructure charges fees for small scale gyms. The fee is reduced to approximately $22.00 per m², instead of $220.00 per m². The definition of small scale is provided below:

Small Scale Indoor Sport and Recreation (Gym) - A use the subject of a development permit for a material change of use for Indoor Sport and Recreation that restricts the use to:
- 50 hours per week or less; and
- a maximum of 15 persons (staff and customers) on the premises at all times.

Should you meet the above requirements you can likely avoid an additional infrastructure charge. However, the vast majority of Gyms will have more than 15 people in them at any one time, thus not complying with the definition of Small Scale.

Show Cause notices are commonly issued for Gyms, with many owners unaware of the requirement for a development application. Align Planning would be happy to assist any owners that have received a show cause notice.

Should you be interested in opening a Gym on the Gold Coast, or are concerned your gym may not be operating legally, please contact Align Planning

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