Developers were given the go-ahead despite a number of impassioned speeches from concerned locals, with only councillors Samantha McIntosh and Jim Rinaldi opposing the motion.

Victoria Street resident Yvonne Horsfield said the new development, which would back on to her property, would destroy the area’s credentials as a heritage attraction due to its “industrial design”.

“I think this is extremely short-sighted and it’s going to create 97 apartments and that will become of ghetto.”

In October the development underwent the scrutiny of an independent planning panel, which heard 39 public presentations from locals as well as groups in the area.

An amendment was made to restrict the height of the development from four to three-storeys after a number of complaints were made about the site exceeding the current skyline.

Ms Horsfield said residents felt as though their concerns had not been properly considered by the panel, and that council had already made up their minds on the matter.

City of Ballarat major Des Hudson said while he appreciated the concerns of the nearby residents, the development played an important part in the council’s efforts to re-energise the CBD.

“It’s about creating a sense of vibrancy in the inner city.

“Ballarat is a growing city and we want to be the capital of regional Victoria.”

Other concerns raised to the planning panel included the increase in traffic and parking congestion as well as the site’s relevance to the Eureka Stockade.

“This is a very historic spot for cultural tourism that whole area should be treated sympathetically,” Ms Horsfield said.

In the council’s 2011 Central Business District Strategy, council identified a need to encourage higher density living within inner Ballarat to contain sprawl across the outer suburbs.