The mixed-use, $28 million recreational and retail development is proposed for the former drive-in site on the Newell Highway on the southern outskirts of Parkes.

The plan is for one of the commercial sites to house a new 24/7 state-of-the-art gym and health club spanning 3000 square metres, with an indoor 25-metre, six-lane pool, office space for doctors and specialists, cafe and kitchen, steam room and sauna, playground and kids' creche area, splash park, basketball half court and beach volleyball court.

Acting as a hub, it is hoped the gym and health club will accommodate a variety of health professionals - from personal trainers and swim instructors to physios and general practitioners.

It will be one of a number of commercial sites in the development.

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Retail giant Spotlight has secured the first retail building at the development site's entrance and other smaller premises will be available for tenancies.

The developers, Parkes' Shane Mann (owner of Parkes Fitness4All) and SPG Developments Pty Ltd, say they are in discussions with a potential tenant to occupy the tenancy 10 building in the top right corner of the site.

Space has also been reserved for a future takeaway or dining premises, in tenancy 9 at the front right of the site plans.

The development site will be a total area of about 4.74 hectares.

During construction over a rough 12 month period, it's expected to create 180 direct full-time jobs and 185 additional full-time indirect jobs.

Once the site is fully operational, developers say there will be about 200 full-time retail and indirect jobs.

A representative from SPG Developments said they plan to begin construction in the second quarter of 2023 and be complete in less than 12 months.

According to SPG, if there's enough demand, facilities such as a bowling alley or a childcare centre might be built at the site in the future.

The Newell Highway site was acquired as part of a transaction where SPG bought 19 development sites from Woolworths that were originally intended to be developed to accommodate Masters Home Improvement businesses.

"SPG is proposing to develop the site to create a large format retail centre and to accommodate the Spotlight brand as an anchor tenant, attract other tenants and create a lifestyle precinct in conjunction with the Fitness4All business providing new facilities in the community, including an indoor pool and recreation facility," an SPG spokesperson said.

The development proposal was submitted to Parkes Shire Council and put on public exhibition in November, awaiting full approval.

A Newell Highway bypass - for which the first sod was turned in November 2021 - is under construction at Parkes.

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