Plans to set up 'sky barrel' accommodation in the foothills of Mount Buninyong have been referred to the Victorian Civil and Administrative Tribunal (VCAT).
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The applicant, site owner David Penman, is taking the City of Ballarat to the tribunal for "failure to grant a permit within the prescribed time."
The application was originally submitted to council in early June, and was subsequently publicly advertised. The application to VCAT was made in late October.
The planning application is for 67 Yendon No. 2 Road in Buninyong. Under the plans submitted, five one-bedroom 'barrel' villas with steel framing supports would be built. Each would have extended views down into the valley below.
Planning documents say the accommodation would be aimed at the high-end market, and would cost up to $1,000 a night.
Mr Penman is also the developer behind the Clifftop at Hepburn resort, which is described on its website as Australia's "No.1 Romantic Getaway".
A VCAT spokesperson confirmed a compulsory conference was scheduled for early March next year for the 67 Yendon No. 2 Road application, with a hearing set for May.
The City of Ballarat said: "This matter is currently the subject of a VCAT appeal by the applicant during Council's caretaker period.
"Given the number of objections and community interest, this proposal will be considered at a planning committee meeting early in the new year."
"This will allow Council to formally resolve its position on this matter prior to the hearing date."
Planning documents re-appeared in the "on advertising" section of the City of Ballarat's planning website last week.
In a further response, a council spokesperson moved to assure objectors they would be informed if there were any changes to the planning application.
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A statement issued to The Courier on Wednesday reads: "If the status of this matter appears on Council's website as being on advertising/referral it is likely the result of referral responses having recently been received by referral authorities both internally and externally."
"In the case that a matter has been listed with VCAT for failure to determine, in order to formalise a position we must continue to pursue referral responses and any other information that would allow the officer to assess the proposal and provide a recommendation.
"We hope through recent discussions with the proponent that Council will be able to achieve a suitable outcome for all parties.
"We can assure any objectors that if there are changes to the proposal prior to any VCAT dates that, as parties to the proceeding, they will have the opportunity to view these changes and provide comment."
When the application initially went out for public feedback, it received 52 objections, the City of Ballarat also confirmed.
A number of people within the Buninyong community have spoken out publicly against the plans.
The proposed accommodation had also been marketed for sale by real estate agents for $1,000,000 for each barrel.
In the advertising material they were billed as "Australia's most talked about villas", which would be a "turnkey, worry-free investment." It also advertised an eight per cent return for up to 10 years.
Mr Penman confirmed they were no longer on sale.
As well as the Clifftop at Hepburn property, and the luxury accommodation project in Buninyong, Mr Penman submitted plans for a glamping site at 153 Charlies Road, Elevated Plains in Hepburn Shire earlier this year. A number of objections from local residents were received to that proposal. Council officers had recommended the application be approved, but a majority of councillors rejected it at a meeting in July.
Hepburn Shire told The Courier on Wednesday the planning refusal is scheduled for a VCAT hearing.
A VCAT spokesperson confirmed a hearing concerning the Charlies Road address is due to take place in February next year.
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