A historic Gregory Street house can be demolished after council voted to abandon plans to take a heritage overlay decision to an independent planning panel.
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But the owners said they hope the Lake Wendouree house, which was built in the Ballarat Botanical Gardens for the gatekeeper, can be taken back to its original home.
They first offered the possibly 150-year-old house to the council and the Friends of the Ballarat Botanical Gardens group in 2014 and said they would still give the house away for free.
Councillor Samantha McIntosh said she had moved a house a greater distance for $15,000.
In 2015, council went to Planning Minister Richard Wynne to decide whether to give it a heritage overlay, but this and the temporary overlay will be withdrawn.