The future of a 74-apartment and medical centre development on Warrnambool's Dales Road is unclear after the land was put on the market.
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Councillors ignored the recommendations of its officers and knocked back the development in December, slamming it as opportunistic and saying it set an alarming precedent for the city.
The 60-day timeline for appealing the decision to the Victorian Civil and Administrative Tribunal appears to have lapsed.
The proponents said councillor's comments and the decision to reject it had shocked them, especially when Warrnambool was in the middle of its worst ever housing crisis.
The developer said they had poured two-and-a-half years' work at "considerable expense" into the project which was dismissed by city councillors in about 15 minutes.
There were 99 apartments in the original plans for the site that were submitted to the council in April, but the proposal was scaled back to 74.
Revised plans got the tick of approval from officers for meeting planning guidelines, but councillors rejected it.
The proposed two and three-storey development on the corner of Dales and Aberline Road would have consisted of one and two-bedroom townhouse-style apartments.
The complex, called Gateway Apartments, was to include a playground, communal garden and a medical centre with eight consulting suites and a pathology room.
At the council meeting, Cr Peter Hulin described the Dales Road development as more like a hotel complex than residential accommodation.
Cr Mike Neoh said the development would be a litmus test if it ended up at the Victorian Civil Administrative Tribunal.
"I think it will open the floodgates if a development like this is approved," he said.
A statement from the council said that it was not aware of any appeal to VCAT in relation to the proposal for Dales Road.
"Should the project proponent wish to have the council decision reviewed, it must apply to VCAT within 60 days of the notice of decision to refuse a permit," it said.
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