Careel Bay Residents Push Back as Liquor Store and Childcare Plan Sparks Outcry

A development proposal for a Dan Murphy’s liquor store and a childcare centre in Careel Bay has triggered widespread backlash, with residents warning it could bring traffic chaos, flooding risks and a clash of community values to the heart of Avalon Beach.



Mixed Use Sparks Community Concern

The $10 million plan, listed as DA2024/1091, proposes replacing the Careel Bay shopping village with a two-storey retail and childcare complex. It includes underground and street-level parking, and is now before the NSW Land and Environment Court after bypassing council. Of 127 public submissions, 126 opposed the project.

Photo Credit: DA2024/1091

Locals are alarmed by plans to pair a 500-square-metre Dan Murphy’s with a 78-place childcare centre, arguing it’s an unsuitable mix for a family-focused area.

Photo Credit: DA2024/1091

One submission compared the proposal to “children’s TV with gambling ads,” while others warned it would hurt small businesses and erode Avalon’s village character.

Flood Risk and Traffic Pressures

Careel Bay’s flood risk is a key concern, with the site sitting below the AHD 4.9 flood level. Council notes confirm it’s in a low to medium flood zone with coastal hazards.

Photo Credit: DA2024/1091

Residents say the development would worsen traffic at Careel Head and Barrenjoey roads, with access points likely to add congestion during peak times. Transport for NSW may also require the Barrenjoey Road exit to be closed.

Safety and Amenity Under Scrutiny

Council notes from late 2023 flagged design and safety issues, including shared lift access between the bottle shop and childcare centre, poor pedestrian safety, and minimal setbacks. The building’s scale was seen as out of step with Avalon’s low-density, coastal character.

Photo Credit: DA2024/1091

Residents cite a past development nearby that left an open excavation for years, causing water issues and safety risks. They fear this project could follow the same path.

Council Advice: Redesign Needed

Northern Beaches Council recommended a full redesign, calling for separate childcare access, better landscaping, and smaller building mass. Planners said the mix of uses doesn’t suit the surrounding low-density homes and nearby recreation areas.



Despite lacking council approval, the application is now before the court. For many Avalon residents, the plan doesn’t reflect the needs or values of the Careel Bay community.

Published 8-May-2025