A DEVELOPMENT application allowing Woolworths to develop the Sippy Downs Town Centre has been conditionally approved by the Queensland Government, following a decision by the Minister for Local Government and Planning, Paul Lucas, to call-in the development last September.

The mixed-use development will include a shopping complex with retail and commercial spaces and 201 residential units. The shopping centre is expected to turnover approximately $117 million in its first year of operation.

"I'm pleased to announce the Sippy Downs Town Centre vision will be achieved," Mr Lucas said last week, adding that the number of units is an "appropriate compromise between what Woolworths wanted and what Council wanted."

According to Mr Lucas, the number of residential units was based on expert economic research commissioned by the State Government and negotiation between Woolworths and council.

"Woolworths original application was for 24 to be delivered in the first stage but this approval requires 60, bringing more housing supply to the Sunshine Coast sooner," Mr Lucas said.

The Minister said the negotiations on the design of the development have resulted in improved residential amenity and a commercial frontage along Stringybark Road.

"A town centre is a critical element in achieving the intended role of Sippy Downs as a major regional activity centre in the South East Queensland Regional Plan 2009-2031" Mr Lucas said, adding that it will encourage future growth of the area and stimulate other developments.

Mr Lucas said his decision to call-in the development prevented "a long, drawn out argument in an appeals court." The Minister's decision cannot be appealed in the Planning and Environment Court.