A popular brewery has launched a court appeal after it was issued an enforcement notice by the council that could force it to close.
Terella Brewing Pty Ltd filed the appeal over the site at 196 Bunya Road, North Arm, with the Planning and Environment Court on June 5.
It comes after Sunshine Coast Council issued the enforcement notice on May 8 in relation to the use of the 27.68-hectare site, which is in the Rural Zone.
The notice states “a person must not carry out assessable development, unless all necessary development permits are in effect for the development”.
“An inspection by an authorised person on October 12, 2024, observed the subject property being used for an event, specifically Oktoberfest, which was advertised on the Terella Brewing website,” it says.
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Documents show the property had development approvals from 2016 for intensive horticulture; stormwater, earthworks, landscaping, driveway and parking; a Class 8 farm building; and a Class 10 shed, but the operation had since evolved into medium impact industry.
“The present use of the land by Terella Brewing is unlawful and is of a scale, intensity and frequency that may result or is likely to result in risks to health and safety (and/or) environmental nuisance or harm,” the notice states.
It says unless a relevant development permit is in effect, all events at Terella must stop by June 30, with the production of alcohol and serving of food and drinks to cease by July 31.
The appeal argues that the council’s enforcement notice does not identify what assessable development it considers is being carried out, or a particular development approval that has been contravened.
It also states Terella was not first given a show cause notice before the enforcement notice was issued.
“Whilst the appellants have had some involvement in, and have been aware of, discussions with council related to the concerns set out in the enforcement notice, the appellants have no record of receiving a show cause notice in respect of this matter,” it states.
“The respondent has not demonstrated a reasonable basis for issuing an enforcement notice to the appellants without first issuing a show cause notice.”
Council’s development database includes a show cause notice dated October 15 that outlines some more background to the matter.

It states that the council in October 2023 received a complaint concerning excessive alcohol consumption, noise and light nuisance, excessive vehicle numbers and private functions. Further complaints regarding noise and traffic were received in July and August 2024.
A council review in November 2023 identified activities on the site that require development permits, including building additions, additional outdoor seating and an internal road network and parking.
“Council on November 23, 2023, issued an advisory letter concerning the conduct or unapproved land uses,” it states.
Council records show an application was submitted by Terella on October 17, 2024, for a material change of use for a food and drink outlet, function facility, market, medium impact industry (brewery and production of alcoholic beverages up to 200,000 tonnes), outdoor sport and recreation (outdoor cinema) and tourist attraction (petting zoo).
A planning report by Murray and Associates submitted with the application notes the proposed uses would trigger impact assessment, meaning it would go through public consultation.
“The brewery component does have lawful use rights as a rural industry (brewery), however given the popularity and growth of the Terella brand, not all ingredients are being sourced from the subject land and therefore approval for a medium impact industry use is required,” the report says.
“Terella have been operating on the site for the past eight years as a family-friendly venue, during which they have become a mainstay in the community and a popular destination for tourists and locals alike. Due to Terella’s success amongst the community, there is substantial community interest and support for the continued operation of Terella.”
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The council’s enforcement notice on May 8 indicates the brewery component of the application was unlikely be approved.
“Council has formed the reasonable belief that the unapproved medium impact industry use is not consistent with the intent for development in the Rural Zone,” it states.
The venue advertised a Donut Festival on Saturday, which included live music, food trucks, a jumping castle and more, with Terella posting to social media asking patrons to observe its rules.
“We’re reaching out with an urgent request to help us keep our beloved venue open and thriving. Recently, a new neighbour has raised repeated complaints to the council – meaning our venue faces the possibility of closure if issues continue,” it said.
“To avoid this and ensure everyone can keep enjoying our space, we kindly ask that you do not park anywhere along Bunya Road this Saturday (cars must be inside our fence boundary). Your cooperation means the world to us and is vital in helping us keep the venue open for everyone’s enjoyment.”
The post attracted more than 200 comments and 200 shares, many of them in support of the venue.
Sunshine Coast News reported in July last year that potential changes were being made to the business to improve efficiencies and reduce the impact on neighbours.
Head brewer Brandt Bamford said at the time that the number of people on site at Terella was “not sustainable” and “not fair to the neighbours, so we must adapt”.
Terella was contacted for comment.