The person, who the city said it could not identify, was eventually fined just $3000 for tearing down the 158-year-old stables of the Newmarket Hotel, which gave Miners Rest its name.

City of Ballarat chief executive officer Anthony Schinck said council was "very disappointed" with the result and he had since written to the state government asking for tougher measures to protect heritage assets.

The city initiated legal action against the person over the demolition, but then agreed to a diversion order instead – an alternative to usual court proceedings that allows for the settlement of charges without a conviction.

"The intention of the diversion order was not to remove any of the public requirements that would come with a prosecution process," he told The Courier.

However one of the agreements of the diversion order was that the person write an apology to the Miners Rest community for the demolition, and the wording of the statement was yet to be agreed upon by both parties.

"Until that is complete, the legal advice we have received is that we are unable to release the name of the owner yet," Mr Schinck said.

Mr Schinck said he believed at the time a diversion order would achieve the best result for the city, in large part so that any money paid by the person as a penalty could be put towards the city's heritage works.

But he said the final outcome was disappointing after the amount was greatly reduced in the Ballarat Magistrates Court.

Mr Schinck said the city was pushing for a payment of $10,000 to its heritage fund, but the sum was reduced to just $3000.

"At the end of the day, the building should still be there. It's inexcusable that it was pulled down," he said.

A City of Ballarat heritage citation report on another Miners Rest building in April 2012 named the Newmarket Hotel as "the original miners' rest".

The stables housed the horses of Cobb and Co coaches.

A subdivision of 137 Howe Street by then-owers the Murphy family in 2012 split the property into three different lots, separating the stables and hotel.

City of Ballarat general manager of city strategy Natalie Reiter said that a historical link showing the two buildings to have a "symbiotic relationship" would have had to have been made earlier for the subdivision to be seen as potentially inappropriate.

However Ms Reiter said that if the new owner of the stables had followed correct procedure, they would almost certainly have been saved.

"There should have been an application for demolition, and often what that triggers is a heritage assessment of whether or not it's appropriate to demolish," she said.

"One can pretty safely assume that heritage assessment would have said no, it can't be demolished because it's of heritage significance."

Ms Reiter said a report could have been prepared on the building's safety and recommendations made about how to make it safe if that was an issue.

"All that work could have been undertaken to ensure a safe preservation of the building.

"Council didn't have an opportunity to undertake any of that work," she said.

April 17, 2012

The Murphy family applies to subdivide the block of the Newmarket Hotel, separating the hotel from the stables

June 13, 2012

The subdivision of 137 Howe Street into three lots is approved

May, 2013

The new owner of Lot 1, 137 Howe Street demolishes the stables without permission

August, 2013

The City of Ballarat is made aware of the demolition

At some point in between

The City of Ballarat initiates legal action against the person, but then agrees to a diversion order rather than push for a conviction

May 9, 2014

According to the city, a court hearing to grant the diversion order greatly reduces the amount of money to be paid from $10,000 to $3000

July 29, 2014

The city writes to the state government asking for harsher penalties for heritage vandals

THE Newmarket Hotel stables had stood in Miners Rest for more than 150 years and formed part of the story behind the town’s name, before they were demolished without permission.

Established before the city of Ballarat, Miners Rest became popular in the early 1850s as a half-way point between the two newly discovered goldfields at Clunes and Buninyong.

The town’s name literally means it was a resting place for miners travelling between the two fields.

Learmonth Historical Society researcher Bill Loader said he used to take groups past the stables on historical tours of the town.

“Oh yes, they could be seen from the road,” he said.

“They changed the horses there as they were going through to Clunes. It was an important stop and I suppose, with the hotel, it would be a stop for the passengers, too.

“They were the only stables left standing on the route, so I suppose that would make them fairly important.”

A City of Ballarat heritage citation report on a nearby Miners Rest building in April 2012 named the Newmarket Hotel as “the original miners’ rest”.

Located on the corner of Howe Street and Cummins Road, it was for many years owned by Marita and Garry Murphy. In 2012, the Murphys subdivided the block into three lots, separating the stables and hotel.

Ms Murphy said she was saddened to see the stables torn down.

“Owning and using the Cobb and Co stables was great for our family for 30 years and we left them safe on three-quarters of an acre, so it’s been very sad to then see them be demolished,” she said.

City of Ballarat general manager of city strategy Natalie Reiter said the $3000 paid by the person who demolished the stables as a penalty would be put towards celebrating the history of the area.

Ms Reiter said signs explaining the historical significance of the hotel and stables would be erected on nearby street poles, and there were also plans to record the history of the site in an iPhone app and website.

andrew.ramadge@fairfaxmedia.com.au