Peregrine Corporation has lodged a development application with the Kangaroo Island Council to build a new OTR service station on the old Telstra block at 40 Kohinoor Road, Kingscote.
Council CEO Andrew Boardman said the development was a Category 2 development that complied with the commercial zoning of the block.
It would require public notification for the residential landowners on the other side of the road but not for the general public.
Councillors discussed the development at their May meeting after concerned resident Mike Holden submitted a letter opposing the development on the grounds that there were already two locally operated service stations in Kingscote.
“I believe that this development will not of benefit to the people of Kingscote and will directly disadvantage people who live the new construction and those already employed in the fuel industry,” Mr Holden wrote.
“Presently, on the same road, we have two operating service stations that provide the Island with their fuel needs. There have not been any fuel shortages of any significant nature and thus the new service station does not fill a market vacancy.
“The existing service stations are presently owned and operated by local families who have served this island for many years.
“I believe that if you allow this development, you will jeopardize their livelihoods and money that presently stays on the Island and benefits the community will be lost offshore, along with employment.”
Regarding risk of petrochemical contamination of the proposed site, he wrote that the old service station site on Murray Street was now “almost useless” and warned this could be case for the Telstra block.
Councillor Peter Denholm at the May council meeting said he read the letter with some degree of alarm and questioned whether the development was going to be out for public comment.
“We’ve already got two petrol stations, how many do we need,” Cr Denholm said.
Mayor Peter Clements said the council had to follow set procedures when it came to approving development.